One of my favorite feelings occurs on warm summer afternoons. No, I'm not talking about laying down on a hammock reading a book...after all, I do have two young children! Instead, I am talking about how a few clouds roll in replacing the puffy white ones with the wind still albeit a few birds chirping. We all know what happens next. A few cracks of thunder followed by cooling rain. But that feeling of the inevitable storm coming...the anticipation...it's exciting. However it also brings out in me the adrenalin but a nervous energy of not being able to do anything. And that, everyone, is what this week holds barring some unforeseen circumstance. There is very little economic data and only a handful of companies are due to report their earnings. So movement becomes a bit more muted on even weaker volumes than normal. It is, however, a great shot to do some homework for the earnings season to come and truly hone skills at making selective trades as moves can and will be sharp for people craving action. Thus be ready for the relative paucity in opportunities, again, barring something out of the ordinary but also be prepared for the onslaught of activity to come later this month.
Markets were generally higher in Asia overnight with Hong Kong posting a particularly strong showing in trading up 1.5% with Tokyo up 0.1%. In Europe, prices are lightly mixed across the board. Oil is up slightly with gold up about 0.5%. The dollar is slightly stronger. Futures are up marginally with no major economic nor earnings news out. The session will likely be a quiet one with selected opportunities like in the rare earths, big cap tech, the airlines, and the exchanges.
If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified.
If something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-
Good- The following stocks have good news and/or a strong technical pattern
CBE- closed near a high on vague takeover rumors
ALEX- closed near a high amid a story that Pershing has taken a stake in the company
VRX- closed near a high
VHC- closed near a high
INHX- closed near a high
WPRT- closed near a high
SVN- closed near a high
TDSC- closed near a high on positive comments from a brokerage house
RRR, GIII- featured on “Mad Money’ on Friday
IDRA- decent phase I IMO-2125 data
OPTR- upgraded at Bank of America Merrill Lynch
MCP- acquiring controlling stake in an Estonia facility
VVUS- positive Qnexa data presented at the American College of Cardiology Annual Meeting
DEER- reported “significant” growth momentum in first quarter
Bad-The following stocks have bad news and/or a weak technical pattern
FFIV- closed near a low on negative comments from a brokerage house
RBN- closed near a low on negative comments from a brokerage house
CDTI- closed near a low after posting poor earnings
RECN- closed near a low after posting poor earnings
KKD- closed near a low after posting poor earnings
CPX- closed near a low
SYNA- closed near a low
RVBD- closed near a low
LUV- negative reaction to the pressurized plain problem over the weekend
OVTI- removed as a long-term idea at JP Morgan
RVSN- cut earnings guidance
Earnings:
MON APR 4 BEFORE
None today
MON APR 4 AFTER
SCHN
Epiphany Trading, LLC
www.epiphanytrading.com
Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
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