Traders Corner   16 comments

Pre-market movers

UP: none
DOWN: AAPL, AMZN, FB, TSLA

S&P 500 Daily Momentum: Bullish
S&P 500 Daily Overbought/oversold: Neutral
S&P 500 Weekly Momentum: Bearish (weakening)
S&P 500 Weekly Overbought/oversold: Neutral (leaning overbought)
S&P 500 Futures (June): Negative
Overall: The markets are looking to start to the downside this morning, but there is nothing in the technicals to keep them down. 1862 is an important level for the S&P 500, with the 20 and 50 day moving averages meeting there.

The S&P 500 levels to watch today:

UPSIDE: 1883 (March’s high), 1888 (May 1st’s high), 1891 (May 2nd’s high), 1897 (April’s high and the all-time high), and 1900 (top of the Bollinger Bands).
LAST CLOSE: 1881.
DOWNSIDE: 1877-1880 (6 data points), 1867 (February’s high), 1862 (20 day moving average and the 50 day moving average), 1849-1850 (January’s high and December’s high), 1838 (100 day moving average), 1834 (March’s low), and 1824 (bottom of the Bollinger Bands).

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16 responses to “Traders Corner

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  1. Out of TZA from Friday for plus .53 3.1%

  2. Nice one Trader!

  3. I added SPXU at $55.04. I noticed the S&P 500 seemed to be a little slow to turn down this morning.

    • Ed, after the drop at the open, the SPY leveled off and has moved higher. I don’t understand your comment. What am I missing?

      • Recently, the S&P 500 has turned down, roughly around 10 am every morning. While it did turn down a little after 10, that move didn’t hold. Closer to 10:30, it tried to turn again, and failed.

        On a related note, I sold the SPXU at $54.69, for a 0.64% loss. The market is clearly in the bull’s court today.

  4. I sold 30% of my GTAT position this morning at 16.72. That takes me back to my original position I started last April. I am rally bothered by CEO selling. I dug into allegations in a seeking alpha article. He exercised 50,000 options for cash on May 1st. These were options that did not expire until 2019! Ad he sold them via a 10b-5 plan that was filed just two months ago. That bothers me, even if it is not that much money in the grand scheme for a CEO. Our company would make you wait at least a full quarter after the filing of a 10b-5 plan before it could start executing. The only saving grace is that he has sold in the past and would have done better holding. In addition, for a CEO of a company worth more than $1b, he only has 380,000 shares, or about 5 million in GTAT stock. That seems pretty light to me.

    • So far, his sale hasn’t had any impact on the price of the stock as it continues to trade in its range. I don’t plan to add shares. I’ll continue to sell calls around my position. I’ve reduced my basis from 17.29 to 14.38. Should be in good shape unless it crashes. Without knowing the reason for the sale, it is best to play it safe. Thanks Marshall for the update.

  5. Silver is starting to show some strength again. If you are interested, keep an eye on SLV to see if it can break 19.50. If it get there with some technical strength, it should be good for a trade.

  6. XLF is weak today. I wouldn’t think the market can move higher without the financials.

  7. TZA @ 17.36. Will hold if it doesn’t work out today.

  8. Few more trades, in a selling mood. Sold 28% of my LMNS at 8.74. Taking a loss, but feels good to start putting behind me. Also sold 20% of my FGL as their IR dept never responded to my query (disappointing).

  9. As we approach the close there isn’t much to report on todays technicals. Small caps continue to look weak on the daily and weekly charts. The S&P continues flat.

  10. Hey Marshall, what do you think of Fiserv?

  11. Good financial, consistently good earnings. I’m thinking of a full position?

    • Jeff – I know nothing about FISV. They look decent – except I do not like their balance sheet. A couple of metrics I try to look quickly include enterprise value/ebidta (like to be under 10, FISV is 13), revenue growth (looking for a positive number, especially if first metric was high) and ROE (generally over 15%). I often look at price to book value as well. There I see of their 9b of assets, $7b are intangible assets. Not necessarily a deal breaker, but it means their tangible BV is negative.

  12. Trader, downside, not alot of options activity

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