Volatility Continues

Markets are once again gaping higher this morning as this wild ride of volatility continues.  With nearly 450 companies reporting earnings today and a busy economic calendar, anything is possible.  Price resistance did its job yesterday rejecting the days high.  This mornings gap brings the price right back up to those same price resistance levels.  I intend to very cautious this morning and will watch price action closely to see if this gap is actually going to be supported by buyers.

Keep in mind AAPL reports this afternoon and we have the Employment Situation report before the open on Friday even more volatility risk for those holding positions into today’s close.  Remember mid-term elections are next week, and the trade issues with China continue.  Think about that as you plan your risk heading into the weekend.

On the Calendar

We have a huge day on the Earnings Calendar with nearly 45 companies reporting.  Some of the notable earnings for today are: AGIO, AIG, ALL, AMAG, AMCX, AME, AMGP, AMRN, APA, AR, ARES, AROC, ATH, AWK, BCE, BID, BLL, BMCH, BSIG, CBRE, CF, CHD, CI, CJ, CLI, CMP, CNO, CNQ, CNSL, D, DM, DNOW, DWDP, EPZM, ESRT, ESRX, FISV, FND, FRAC, GEL, GLOG, GLPI, GNRC, GOV, HBI, HCC, HGV, HPP, IDXX, IIVI, INAP, INGR, IT, JHG, KRG, KW, LITE, MAA, MAC, MD, MDU, MGP, MMP, MOH, MPC, MPLX, MPW, MRC, MSCI, MT, MTDR, NBL, NE, NFX, NI, NNN, NTCT, NXPI, NYT, O, OMF, OSK, PAH, PBH, PBI, PENN, PGTI, PH, PKI, PPC, PPL, PWR, QRVO, RDS.A, RDUS, RGLD, RPT, RYN, SEE, SFM, SHPG, SNDR, SPOT, SSNC, STAY, STOR, SU, TEVA, THS, TPX, TRP, TS, TVPT, UFS, USCR, VECO, W, WCC, WMB, WPX, WTI, WYND, XPO, ZTS.

Action Plan

Asian markets closed mixed overnight, but European markets are currently bullish across the board.  While I love the bullish enthusiasm in the US Futures this morning, I’m want to extra cautious about the possibility of a pop and drop today.  AAPL reports this afternoon, and we have the Employment Situation number coming in Friday morning before the open.  If that’s not enough to give you a little pause, then answer this question.  What’s changed?  The trade war tensions are still there; the mid-term elections are still on the horizon, and earnings reports have been far from stellar.

Please understand I want the market to go up, but I will only believe it when I actual buyers are supporting the gap after the open.  Until then I will remain cautious remembering that volatility is still very high and with more than 400 earnings reports that anything is possible.  Keep a close eye on resistance levels as we move up to test.

Trade Wisely,

Doug