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IB Traders' Insight

Global market commentary from IBG traders and market participants.

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2015-03-03 22:32:13

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor

Technical Analysis

AUDUSD Approaching Downchannel Resistance on Weekly Chart

The AUDUSD bounced off support at .775 yesterday (as seen in the 4hr chart) after the surprise by the RBA to not cut rates.  The AUDUSD is now approaching .785, a previous area of resistance, and more importantly, roughly coinciding with downchannel resistance (on the weekly chart).  The AUDUSD is also trying to form a higher low (on the daily chart).  Weekly, daily and 4hr RSI, Stochastics and MACD are mostly rallying again after recent consolidation.

AUDUSD Weekly/Daily/4hr/Hourly

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

 

2015-03-03 22:32:10

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor

Technical Analysis

WTI Crude (CL) Weekly, Daily, 4hr Upward Momentum Increasing

CL continued pushing higher yesterday along a new narrow upchannel (on the 4hr chart) yesterday, approaching prior resistance at 51.  A green weekly Doji is currently forming, with weekly, daily and 4hr RSI, Stochastics and MACD mostly rallying and the weekly MACD on the verge of a positive crossover.

WTI Crude (CME CL Apr15) Weekly/Daily/4hr/Hourly

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-03-03 22:28:21

Posted by
Darren Chu, CFA
Founder
Tradable Patterns
Contributor

Technical Analysis

A50 (CN) Selloff Leaves it Near 50% Retrace of Rally from 10k to 11k

CN's selloff yesterday leaves it near the 50% Fibonacci retrace of the rally from 10000 to 11025.  CN sits under former upchannel support (now resistance on the 4hr chart), after having been firmly rejected by downchannel resistance on the weekly and daily charts.  Daily Stochastics and 4hr MACD remain bearishly downsloping, while daily RSI and 4hr RSI and Stochastics begin their bottoming attempts.

 

A50 (SGX CN Mar15) Weekly/Daily/4hr/Hourly

Tradable Patterns was launched to demonstrate that the patterns recurring in liquid futures, spot FX and equity CFD markets can be traded consistently profitably. Tradable Patterns’ daily newsletter (blog) provides technical analysis on a subset of ten to twelve CME/ICE/Eurex futures (commodities, equity indices, interest rates), spot FX and US equity markets, which it considers worth monitoring for the day/week for trend reversal or continuation. For less experienced traders, tutorials and workshops are offered online and throughout Southeast Asia.

This article is from Tradable Patterns and is being posted with Tradable Patterns’ permission. The views expressed in this article are solely those of the author and/or Tradable Patterns and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-03-03 15:46:54

Posted by
Caitlin Duffy, CFA
Equity Options Analyst
Contributor

Options

Alibaba options in focus

Options volume on Alibaba Group Holdings is poised to end at the session at approximately three times the average daily level, with volume in BABA contracts approaching 300,000 contracts versus average daily volume of 105,000 contracts and less than 30 minutes to go before the closing bell. Shares in BABA are down 3.0% as of the time of this writing to stand at $81.50, off the intraday and fresh 52-week low of $80.03 set earlier this afternoon.

Across all available expiries, the 80.0 strike put options are seeing notable activity, with cumulative volume in excess of 30,000 contracts. As for trading in BABA calls across available expiries, the 85.0, 87.5 and 90.0 strike contracts attracted the most action.

Chart – Above average day for Alibaba options volume

2015-03-03 12:18:25

Posted by
Singapore Exchange

Contributor

Futures

New Dawn for Chinese Equities as Options Trading Starts

  • A new dawn for equities in China - the launch of the options on China 50 ETF marks another milestone in the ascension of China’s financial markets onto the world stage.
  • SGX FTSE China A50 Index Futures, with its longer trading hours, deep liquidity and high correlation with the SSE50 and CSI300 indices, offers investors a flexible risk coordination tool to manage their delta exposure.

Rollout of Options in China

China financial reforms could best be summed up in the late leader Deng Xiaoping’s words, “crossing a river by feeling the stones”.

On 9 February, Shanghai Stock Exchange launched China’s first financial options, the SSE50 ETF options. The first day saw some 18,843 contracts traded, a smooth debut which did not result in excessive volatility or irrational speculation. Market reopened after the long Chinese New Year break with 16,856 contracts traded.

The options are based on the Exchange-Trade Fund (ETF) that tracks the SSE50 index, composed of the 50 most heavily weighted stocks on the bourse. The regulator is essentially guiding investors into blue chips, which most retail investors have avoided in favour of smaller firms, whose valuations have soared.

Due to their perceived risky nature, China has taken careful steps, through intensive investor education, strict regulatory policy and trading restrictions to curb risk. Plans to trade options for individual stocks have yet to be disclosed, a sign that the regulator has adopted a cautious approach.

The launch of options represents a major milestone and innovation in the country's equity markets. Options offer investors more flexible risk coordination tools.  

Market makers and proprietary desks are reportedly using the SSE50 ETF to hedge customers’ options positions. Yet on the other hand, the limitations associated with ETF, such as the costs of borrowing and shorting the ETFs, have also resulted in some firms exploring futures as substitutes.

Last week, CFFEX announced that it would start mock trading of two new products – the SSE50 and CSI500 index futures – on 21st March 2015.

High correlation between the SSE50 and FTSE China A50 Indices

The launch of the SSE50 ETF options is expected to generate more interest in the SGX listed FTSE China A50 Index, given the high correlation between the 2 indices.

The FTSE China A50 index and SSE50 Index shares a total of 30 members. As the GIC sector classification indicates, 67% of components in both indices belong to the financial sector with the industrial segment coming in second with 9.90% for the FTSE China A50 and 12.05% for the SSE50 index. In short, both indices are financials-heavy.

Common Stocks Shared by FTSE China A50 and Shanghai Stock Exchange 50 Index

Source: Bloomberg 10 February 2015

Source: Bloomberg 12 February 2015

Trading and Hedging Opportunities with the SGX FTSE China A50 Index Futures

With a total volume of some 120 million contracts in 2014, SGX FTSE China A50 Index Futures stands out as the ideal future instrument with sufficient liquidity and depth to complement the trading and hedging against onshore and offshore cash and derivatives products.

As demonstrated during the recent period of high volatility, the extended trading hours of the SGX FTSE China A50 Index Futures has become a major plus for investors with China A-share exposure. The longer hours allows traders and market makers to react to off-market announcements and happenings in other global markets.

Source: Bloomberg

 

Besides black swan events, governments are adding another element of surprise to the markets - central banks are throwing their hats into the devaluation game are releasing announcements during off market hours. These uncertainties and volatilities are translating into new opportunities and risks for both long and short gamma holders.  

On 21 November 2014, after the Chinese market closed, the People’s Bank of China announced a cut in interest rate. The People's Bank of China (PBOC) reduced one-year benchmark lending rates by 40 basis points to 5.6% and lowered one-year benchmark deposit rates by 25 basis points to 2.75%. European equities rallied. Similarly, SGX FTSE China A50 Index Futures, as illustrated below, soared on the announcement.

Source: Bloomberg 12 February 2015

A similar incident took place on 4 February 2015. China's central bank made an after-market announcement to cut bank reserve requirements, the first time it had done so in over two years, to unleash a fresh flood of liquidity to fight off economic slowdown and looming deflation.

Reserve requirements were lowered from 20% to 19.5% for big banks, a reduction that would free up RMB600 billion in reserves.

On 28 February, PBOC announced the reduction of one-year deposit rate by 25 basis points to 2.5% and the one-year lending rate will also drop by a quarter percentage point to 5.35%.

More Good Tidings in the Year of the Ram

Last week, in a bid to boost turnover under the Stock Connect scheme, Hong Kong Exchange and Clearing (HKex) announced plans to allow investors to short-sell Shanghai listed A-share under the Scheme from 2 March 2015. This marks the first reform of the Scheme since its launch on 17th November 2014.

However, like the Stock Connect Scheme, the latest initiative aimed at boosting the lacklustre turnover of the Stock Connect comes with several restrictions.  The short-selling ratio – the number of shares sold short as a proportion of the total number of the same stock held by all investors in Hong Kong at the beginning of the trading day, will be capped at 1% and no more than 5% over 10 consecutive days. Before short selling, they would need to borrow the stocks from brokers at a margin. Short sell orders will have to under pre-trade checks to ensure the borrowed stocks have been delivered at least one day before sale.

Market analysts do not expect the latest move to generate immediate and substantial results, noting that hedge fund managers had other means of implementing strategies and would not be rushing to participate in the new scheme. However, in the longer term, turnover is expected to improve as more fund managers get compliance and regulatory approval to trade through the link.  

Other longer-term catalysts include the possibility of lifting the total quota under the Stock Connect scheme, the inclusion of Shenzhen stocks under scheme, and inclusion of China A-share stocks by index providers like FTSE and MSCI which could enhance global investors’ demand.

Please refer here for contract details on SGX FTSE China A50 Futures.

 

This article is from Singapore Exchange and is being posted with Singapore Exchange’s permission. The views expressed in this article are solely those of the author and/or Singapore Exchange and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-03-03 10:52:03

Posted by
John Carter
President
Simpler Stocks
Contributor

Stocks

Simpler Stocks: Monday Movers

It took about 15 years but the NASDAQ crossed the 5,000 point threshold for the first time since the heady dot-com days on Monday. Part of the impetus for the milestone was the announcement that NXP Semiconductors N.V. (Ticker: NXPI) would buy Freescale Semiconductor Ltd. (Ticker: FSL). Both the S&P 500 and Dow indices found themselves closing at record levels to start the trading week. Treasuries fell a bit in contrast.

Akamai Technologies Inc. (Ticker: AKAM)

Akamai said Monday it would buy Xerocole to help bolster the DNS portfolio. No terms were disclosed. The deal will not impact Akamai’s financials, but does help with technology initiatives. Earnings growth projected for the company by the Street looks for the metric to double from 2015’s level to 20% next year. In the meantime, the revenue additions for the company overall are expected to be fairly steady at about 16%. Continued demand for speedier and safer Internet data and media downloads gives a pretty strong backdrop for such growth.

Consolidated Water Co. (Ticker: CWCO)

Shares in CWCO have been bouncing around a bit, with some movement toward crossing the 200-day moving average, and now comfortably above the 50-day moving average level.  The company may start seeing a rebound from slight sales declines after 2015 as contracts are renewed for potable water and distribution. Key to future growth will be the buildout of desalination operations in California and Mexico.

Cardinal Health Inc. (Ticker: CAH)

Cardinal announced Monday morning that it would buy J&J’s Cordis cardiovascular unit for a bit more than $1.9 billion. That buy will focus on stents and blood vessel instruments. This latest deal helps CAH build on last year’s buy of AccessClosure, which in turn focuses on vascular health. Cardinal shares are trading at 0.3x sales and a beta of less than one, while the cash flow yield is 8% on Monday’s equity price.

Apache Corp. (Ticker: APA)

With a $24 billion market-cap, Apache could hardly be seen as flying under investors’ radars. The oil exploration company should post a loss on declining energy prices this year (leading to a 37% slide in the top line), but the rebound sighted by analysts for next year means that investors should keep an eye on the shares, which are trading at slightly less than book value. They’ve also crossed the 50-day moving average, and even with the recent crash in commodities, the beta is still less than 1x. By cutting capex by as much as 60% next year, the company will conserve cash into the next round of supply and demand balance.

Chart - Six-month chart of Apache Corp.

Logitech International (Ticker: LOGI)

Logitech is a $2.4 billon market-cap firm operating in technology peripherals and video conferencing, and offers everything from speakers to keyboards to webcams. The company’s stock trades at just over 1x sales with PEG ratio below 0.9x. The cash adjusted forward PE – accounting for net cash of about 21% of the current market cap – drops to roughly 12x, compared to roughly flat growth expectations, but well below relative market comps.

Valmont Industries (Ticker: VMI)

Valmont got a favorable writeup in Barron’s over the weekend, as the magazine noted the bottom of the cycle may be in for irrigation-related equipment. The company will benefit from water scarcity and from its international presence, while any rebound in corn prices, and farmers’ businesses may help as well. Buybacks continue as the company pushed through another approval recently, and the total program now accounts for roughly 10% of the outstanding share count. 

 

About the author: John Carter has been a full time trader for 15 years, serving over 100,000 subscribers in over 100 countries.  For more analysis on high growth stocks visit www.SimplerStocks.com.

 

This article is from Simpler Stocks and is being posted with Simpler Stocks’ permission. The views expressed in this article are solely those of the author and/or Simpler Stocks and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-03-03 09:31:15

Posted by
IB European Trade Desk
Contributor

Forex

Aussie vols dampen as central bank shows reserve

Whether the Reserve Bank of Australia wished to keep its powder dry or whether it simply did not want to ease at back-to-back meetings, the impact was to drive higher the value of the Aussie dollar Tuesday and push down uncertainty in the FX options market. Governor Glenn Stevens maintained interest rates at 2.25%, defying a two-thirds consensus in the swaps market ahead of his decision, offering reprieve to a domestic currency in the doldrums. The Aussie rebounded versus the US dollar to buy 78.17 US cents, up from 77.65 cents the prior day. The rebound clearly caught Aussie bears by surprise given the assertion by Mr. Stevens that further easing may yet be warranted. One potential catalyst is a further slowdown in the domestic Chinese economy. Over the weekend the PBOC further cut its main lending and deposit rates. With the forex market now focused on an easing at the RBA’s May meeting, option traders leaned on implied volatility, driving it down across the maturity curve as the Aussie unit rose. One-month vols declined to 10.8% from 12% while longer maturities were lower by 5% falling to 10.8%. Up ahead next week is the domestic employment report, which could ignite volatility plays further.   

Chart – Aussie remains near six-year low as implied volatility softens

 

2015-03-03 09:25:50

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor

Stocks

The Hammerstone Report: Sector News Breakdown

Consumer

  • Gaming/Casinos: Macau gaming revenue fell a record 49% to 19.5 billion patacas ($2.4 billion) last month, Macau’s Gaming Inspection and Coordination Bureau said, which compares with Bloomberg estimate for a 54% decline. Macau last year posted its first annual decline in gaming revenue, as VIP gamblers avoided the city amid China President Xi Jinping’s anti-graft campaign (watch shares of WYNN, MPEL, MGM)
  • Stage Stores (SSI) Q4 eps $1.36/$524.M vs. est. $1.35/$530.2M;sees FY16 EPS $1.20-$1.28 on sales $1.64B-$1.675B, both below consensus of $1.34/$1.69B; sees year comp sales unchanged to up 2%
  • Caesars Entertainment (CZR) Q4 eps loss ($6.90); revs $2.13B vs. est. $2.23B; said 4Q casino revs $1.37B vs. $1.35b YoY
  • NutriSystem (NTRI) Q4 eps 18c/$79.2M vs. est. 16c/$79.1M; sees Q1 revs $129m-$134m vs. est. $133m and year revs $425m-$445m vs. est. $435m
  • Carmike Cinemas (CKEC) Q4 loss of $2.2M, missing expectations on top and bottom lines; adjusted EBITDA of $27.1M fell short of expected $30.5M as well
  • Herman Miller (MLHR) sees Q4 revenue $530M-$560M, below consensus $571.83M – said the relative weakness in order pacing of our North American contract business that we reported last quarter continued in the third quarter
  • Taylor Morrison (TMHC) files $1B mixed securities shelf
  • Diamond Resorts (DRII) files to sell 4.83M shares of common stock for holders

Energy

  • Nabors Industries (NBR) Q4 revs $1.78B vs. est. $1.83B; unadjusted earnings swung to an $891M Q4 loss, which included a $612M impairment NBR booked on its older rigs; to focus efforts to balance current mkt pricing, utilization while adjusting cost structure, capex as necessary
  • Two days before contract negotiations are scheduled to resume between Royal Dutch Shell Plc (RDSA) and the United Steelworkers’ oil union, the company announced plans to run its second-largest U.S. refinery without union labor. – Bloomberg
  • American Eagle Energy (AMZG) suspends 2015 capital plans
  • Sanchez Energy (SN) Q4 eps loss (19c) vs. est. loss (12c); 4Q production 43.9mboe/d vs est. 43.1mboe/d; still sees 1Q, 2015 production forecasts 40-44mboe/d and reaffirms 2015 capex $600m-$650m
  • WPX Energy (WPX) cutting about 8% of workforce

Financials

  • Barclays Plc (BCS) has set aside an extra $1.2B to cover the cost of settling the probe into alleged currency rigging and posted a 32% drop in full-year pretax profit at its investment bank (DB analyst said the provision was 50% larger than estimated
  • Citigroup (C) upgraded to Overweight at JP Morgan saying the Costco (COST) co-branding credit card deal announced yesterday will add to revenue growth and return on assets
  • Bank of Nova Scotia (BNS) Q1 eps C$1.36/C$5.96B vs. est. C$1.38/C$5.95B; said 1Q ROE was 14.2% vs. 15.4 YoY; Total assets as of Jan. 31 C$852b and 1Q common equity Tier 1 capital ratio of 10.3%
  • NorthStar Asset Management (NSAM) files automatic mixed securities shelf
  • Springleaf (LEAF) is nearing a deal to buy Citigroup Inc.’s OneMain Financial for about $4.25 billion, said people familiar with the matter. The deal is expected to be announced as soon as Tuesday, the people said http://goo.gl/Zsu3ue
  • Santander Consumer (SC) files to sell 245.6M shares of common stock for holders
  • Northstar Realty (NRF) files to sell 60M shares of common stock
  • Altisource Portfolio (ASPS) Q4 eps 30c/$255.9M; eliminating non-rev. generating businesses; said 4Q service revs $145.03m vs. $139.8m YoY
  • Ocwen Financial Corporation (OCN) still expects to report a loss for Q4; says recorded an additional $50M expense related to its New York Department of Financial Services Settlement; sees a Q4 $370M-$420M non-cash charge to write-off goodwill; hired Moelis, Barclays to explore strategic options
  • Oaktree Capital (OAK) files to sell 4M Class A units
  • Arch Capital (ACGL) files automatic mixed securities shelf

Healthcare

  • Mylan (MYL) Q4 EPS $1.05/$2.08B vs. est. $1.05/$2.07B; sees FY15 adjusted EPS $4.00-$4.30 vs. est. $4.16 and revs $9.6B-$10.1B vs. est. $9.82B; sees FY15 operating cash flow $1.6B-$1.8B; FY15 Cap-Ex $400M-$500M
  • Pfizer (PFE) files automatic mixed shelf registration
  • Puma Biotechnology (PBYI) Q4 eps loss ($1.57); had $38.5M cash, equiv. and $102.8M marketable securities as of Dec. 31
  • Arena Pharma (ARNA) expects majority of 2015 revs to be payments from partners based on net sales of Belviq; Q4 eps loss (15c)/$9.2M vs. est. (12c)/$10.1
  • TESARO (TSRO) files to sell $150M of common stock
  • Halozyme (HALO) Q4 revs $30.4M vs. est. $23.8M; said 4Q Hylenex recombinant sales $4.1m; guides 2015 revs $85m-$95m
  • Concert Pharmaceuticals (CNCE) files $125M mixed securities shelf
  • Lab Corp. (LH) and Quest Diagnostics (DGX) both upgraded to Buy from Hold at Canaccord
  • Natus Medical (BABY) delays 10K filing citing potential material weakness

Industrials & Materials

  • Steel stocks: US Steel (X) and AK Steel (AKS) downgraded to neutral at Nomura as believe that there are two major structural changes underway that should significantly alter the global steel landscape in the coming years, namely USD strength and cost curve deflation driven by lower raw material prices and freight rates; also cuts target on X to $21 from $37, AKS to $4 from $10 & STLD to $22 from $24
  • McDermott (MDR) sees 2015 rev. $3.3b-$3.6b above est. $2.79b; sees 2015 operating income $25m-$50m, capex $275m-$295m; said Q4 revs $806.4m vs. est. $715.7m
  • Layne Christensen (LAYN) guides Q4 eps loss $1.10-$1.25, from prior loss 60c-65c (est. 61c loss); says about half of “larger than anticipated loss” due to certain non-cash expenses
  • Trinity Industries (TRN) reaffirmed FY15 EPS view about $4.00-$4.40 (est. $4.31) and backs FY15 Cap-Ex view approximately $250M-$300M
  • Boise Cascade (BCC) announces 2M share repurchase program
  • Heartland Express (HTLD) files to sell 3.25M shares of common stock for holders

Media & Telecom

  • Harman (HAR) files to sell 839,673 shares of common stock for holders
  • Globalstar (GSAT) Q4 revs $22.1 (service revs $17.2M); plan to demonstrate TLPS service at FCC this week, which should enable agency to moved forward with final rules in “near future”

Technology

  • Palo Alto (PANW) Q2 EPS 19c/$217.7M vs. est. 17c/$204M; sees Q3 eps 19c-20c on revs $219m-$223m vs. est. 19c/$214.5m
  • Omnicell (OMCL) delays 10-K to investigate employee allegation; looking into allegation that there exists “side letter” arrangement for specific customer for certain discounts and products provided at no cost, not reflected in final invoices
  • Guidewire (GWRE) sees 3Q adj. EPS 2c-6c on revs $76.5m-$84m vs. est. 5c/$85.0m
  • Callidus Software (CALD) files to sell 4M shares of common stock
  • Gogo (GOGO) announces $300M convertible notes offering

 

The content of this post was created by the Hammerstone Group. The Hammerstone Institutional Forum, a chat-based platform for traders, provides subscribers with up-to-the-minute breaking news headlines and instant analysis that drive the market. For more information please visit www.thehammerstone.com. For more information on the stocks mentioned in the Hammerstone Recap, please contact Brian Ducey at brian@thehammerstone.com.

 

This article is from The Hammerstone Group and is being posted with The Hammerstone Group’s permission. The views expressed in this article are solely those of the author and/or The Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-03-03 09:16:38

Posted by
Jamie Lissette
Trading Analyst
Hammerstone Group
Contributor

Stocks

The Hammerstone Report

U.S. equity futures point to a flattish open after surging to new highs Monday, led by technology (specifically semiconductors – with the SOX Index trading to best level in 15-years), as the NASDAQ traded above the 5,000 level. It is a fairly light economic calendar today after a busy one Monday, but we do get monthly auto sales data throughout the session. Europe was higher initially overnight after stronger German retail sales data (but has since turned negative), while in Asia, The Nikkei Index fell 11 points to 18,815, the Shanghai Index declined 73 points (or 2.2%) to settle at 3,263, and the Hang Seng Index dropped 184 points to 24,702. New reports indicated the decline in China came on possible liquidity concerns after Chinese securities regulators approved 24 initial public offerings, which might drain liquidity from mainland markets and dampen stocks. Of those, 12 would be listed on the Shanghai Stock Exchange, while the rest would go to Shenzhen markets.

It was another record setting performance for major averages on Monday, as the Dow Industrials (4th closing high this year), S&P 500 (5th high this year) and Russell 2000 Index all posted new record closing highs, while the NASDAQ Composite closed above the 5,000 mark for only the third time in its existence, and the first time since 2000. Yesterday’s move came despite mixed economic data, as investors continue to focus on the positive, moving higher on M&A news, and central bank intervention (PBoC surprise rate cut).

World News

  • German retail sales rose much faster than expected in January, up 2.9% in calendar- and seasonally-adjusted terms compared with December (est. -0.3% as per WSJ). On an annual basis, retail sales expanded by 5.3% in January, the highest pace since a 6% increase in June 2010
  • The European Central Bank faces pressure to carry out a new feat of creative accounting to meet Greek Finance Minister Yanis Varoufakis’s request for renegotiation of €6.7 billion in ECB bonds due to mature in July and August – Marketwatch.com
  • Investors who take over delinquent mortgages backed by Fannie Mae and Freddie Mac must try harder to reach agreements that let borrowers keep their homes before kicking them out, according to a new set of rules released Monday. The rules could limit foreclosures but also could cost taxpayers money http://goo.gl/qm2P1I

 

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This article is from The Hammerstone Group and is being posted with The Hammerstone Group’s permission. The views expressed in this article are solely those of the author and/or The Hammerstone Group and IB is not endorsing or recommending any investment or trading discussed in the article. This material is not and should not be construed as an offer to sell or the solicitation of an offer to buy any security. To the extent that this material discusses general market activity, industry or sector trends or other broad based economic or political conditions, it should not be construed as research or investment advice. To the extent that it includes references to specific securities, commodities, currencies, or other instruments, those references do not constitute a recommendation to buy, sell or hold such security. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

2015-03-03 01:39:37

Posted by
Darren Deacon
Australian Trade Desk
Contributor

Macro

Reserve Bank of Australia leaves interest rates unchanged

Clearly there were high expectations of an interest rate cut built into today’s pricing despite last month’s cut to record low 2.25% rates by the RBA (Reserve Bank of Australia).  The RBA announced unchanged rates and the AUD.USD rose from 0.777 to 0.782.  The equities market fell equally sharply, March SPI 200 futures falling from 5945 to a 5883 low in just over 10 minutes.  The banks saw the largest moves in the stock market falling from early gains quickly, heavyweight Commonwealth Bank (CBA) falling from around $93 to $91.50 with similar brevity.  Forward pricing in the money markets clearly point to another cut soon and RBA commentary certainly did nothing to dispel that.

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