Good morning
October will be over today and that could be a good thing for equities. There were a couple of sectors that caught my attention yesterday with potentially bullish reversal engulfing candles. I mentioned this weekend that I would be watching the sectors that started dropping first when this correction began. XHB and XLB both had strong reversal candles yesterday along with the IWM. I am not suggesting that this correction is over but if we can get some follow we may be looking at the start of a snap back rally for the near term. I do think we will likely retest the lows that have recently been put in but that may take weeks or months to occur.
Equities are gapping in premarket, do not chase, have a plan and know your risk reward.
Today's Economic Calendar
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 Employment Cost Index
9:45 Chicago PMI
10:30 EIA Petroleum Inventories
AWSM ultra tiny floater had a little bounce yesterday could get some follow through for a day trade scalp potential red to green need volume to play it and do not chase
KTOS Bounced right off the 200 day the sector is under pressure but could be a long term hold or swing consideration 11.00- 11.70 range could be ideal starter entry area they report earnings next week there have been some recent insider buys fro the 10-to 12.70 range there was also a recent insider sell of some size in the 13 range.. patience with this one will be needed
BZH one of the home builder names worth consideration for a swing or long term hold starter> near an area of potential price support. If the sector gets some follow through could get a test up to the 50 day around 11
AMD Semi stocks had a nice bounce yesterday could get some follow through thick stock more of a swing play trying to hold the 200 day more of a swing play
ATEN
A10 Networks Q3 EPS $0.03 Beats $(0.02) Estimate, Sales $60.502M Beat $57.6M Estimate Could be coming off a bottom Death cross on the daily small gapper this morning looking for a 6 test and roll 5.50 could be line in the sand for support
NOA
North American Construction Q3 EPS $0.05 Beats $(0.10) Estimate, Sales $84.886M Beat $54.97M Estimate bouncing off the 50 day gapping premarket potential swing or day trade opp with volume watching for potential red to green
CZR Full disclosure I added to my long term hold yesterday @ 8 they have earnings coming up next week they have rumors of being and acquisition target already had one offer for over 13 Eventually I think they get taken out but if not I like what is happening in Vegas and think CZR is undervalued
WTI sitting on the 200 day could be a bounce area I have swung this name several times and I am looking at taking it once again 5.50-6.15 range could be an ideal entry area
