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S&P 500 overview:
- Bears running out of space after 2800 support held.
- Breadth improving, shown by RSP vs SPY.
- Transports gaining. Notice $DJT follow-through today after high close on Friday.
- China progress/impasse the next likely catalyst. Remember 2800 in the event of bad news.
- Individual stocks w/bullish follow-through potentially best.
Groups in focus:
- Telecom/media sector to be carved out of Tech sector in late September.
- Industrials (XLI) leading sector since news of China meeting hit late Wednesday. Watch for $77 breakout.
Don’s watch list:
- Toll Brothers (TOL)
- Target (TGT)
- HP (HPQ)
- Hibbett Sports (HIBB)
Charts in focus
- Mexico trade resolution watch:
- KSU: Strong earnings July 20.
- EWW, AMX also in play.
- Industrial pullbacks: UTX, HON, TRN
- MU near support, w/5-6 weeks til earnings. Chop to $47, then bounce?
- Consumer staples may run back to 52-week highs: PEP, KO, MDLZ
- UPS may fill Feb. 1 bearish gap.
- ZBH health-care pullback after strong earnings.
- Materials on pullback watch after good earnings: AVY, CLF
- Banks may accelerate w/KBE coming off 200DMA
- GLUU potentially breaking out. GPRO on breakout/short-squeeze watch.
- Watching small health-care pullbacks: VRAY, TRXC, MDGL, VKTX, SAGE, GWPH
- CYH short-squeeze candidate.
The case against the Greenback
- @DX has retraced 61.8% of December 2016-January 2018 decline
- Most bad global data may be priced in now that Turkey downgraded.
- Next headlines may be positive: NAFTA, China progress.
- Europe not dead: German IP, Zew, Polish IP, Euro zone GDP.
Following big money: Options & strategists
- 8/14: PayPal (PYPL) September 90-95 call ratio spread (1×2)
- 8/16: Bank of America (BAC) call roll: Jan 15 calls → Jan20 20 calls.
- 8/17: Apple (AAPL): August 215-217.50 winning call spread.
- 8/17: Pivotal Software (PVTL): Sept 25-29 call spread. (EPS 9/12 pm)
- 8/17: Gundlach: Potential for short squeeze in Treasury bonds.
- 8/20: Gap (GPS) 24Aug 31 calls bought for $1.67-1.90
- 8/20: Delta Air Lines (DAL): Oct 70 calls bought for $1.35 near highs.
- 8/20: Atlassian (TEAM): Dec 90 calls → Jan 100
- 8/20: Cowen, BAML: Fares, demand positive for airlines.