Traders Market Weekly: May 23-29 2021

Viewing 15 posts - 1 through 15 (of 24 total)
  • Author
  • #26221

    [color=purple][i][b]Where have we been and where are we … wishing all a great & safe week ahead
    Thankfully the attacks in Israel have settled down & hopeful ceasefire holds
    While gas is 20 cents more per gallon – it has arrived after Colonial pipeline
    Inflation abounds everywhere (lumber groceries, gas, etc).
    Some make more $$$ with U/E pay sitting at home than working & it creates stagnation
    Still there is good news as operation warp speed is working in USA & return us to normal[/b][/i][/color] 8)


    We can strive for best each day — even though the deer are on the prowl in spring gardens :woohoo:


    S&P Futures vs Fair Value: +19.0

    10 yr Note: 1.618%
    USD/JPY: 108.93 +0.02
    EUR/USD: 1.2201 +0.0020

    Europe: FTSE: +0.3% DAX: +0.4% CAC: +0.2%
    Asia: Hang Seng: -0.2% Shanghai: +0.3% Nikkei: +0.2%
    Gold (1879.90 +3.20) Silver (27.71 +0.22) Crude (64.75 +1.17)


    The global equity markets are generally off to modestly higher starts. S&P Futures are trading about 18 points higher to around the 4170 area. After a quick dip at the beginning of last night’s trade, a steady bid has been seen. The low print was established at 4142.50. The market is trading just shy of the high of 4174.00.

    In Asia, both China and Japan finished in minor positive territory. The Shanghai saw a choppy session that never deviated far from the neutral zone. The market managed to close near the high of the day. The Nikkei also traded in lethargic fashion. The Japanese benchmark was held in check with heavyweight, Softbank, falling more than 2% on Monday.

    In Europe, the major bourses are trading modestly higher to begin the week. Energy stocks are off to a solid start with BP and Shell trading 0.5-1.0% higher. The space has been helped by a 1.6% pop in crude oil futures. Much of Europe closed for Pentecost


    Gapping down


    SFT -3.2% (prices offering of $75 mln of convertible senior notes due 2026)
    BLBD -1% (CFO Jeffery Taylor to resign for personal reasons)
    VVNT -0.9% (announced founder and CEO Todd Pedersen has decided to step down as CEO effective once the board of directors of the company appoints his successor)
    VXX -0.9% (dipping lower with US futures modestly stronger)

    Analyst comments:

    DG -1.7% (downgraded to Underperform from Neutral at BofA Securities)
    CPB -1% (downgraded to Hold from Buy at Jefferies)
    AINV -0.5% (downgraded to Equal Weight from Overweight at Wells Fargo)


    Gapping up

    M&A news:

    SBBP +16.2% (Xeris Pharmaceuticals (XERS) to acquire Strongbridge Biopharma Plc in stock and CVR transaction)
    COG +1.6% (Cabot Oil & Gas and Cimarex Energy (XEC) will combine in an all-stock merger of equals)
    Other news:

    BYND +4.1% (Beyond Meat and Tesco (TSCDY) launch new ready meal range; also upgraded to Outperform from Underperform at Bernstein)
    VSTM +3.1% (receives Breakthrough Therapy Designation for VS-6766 with Defactinib)
    BYSI +2.7% (presents phase 1 data on the anti-cancer effect of plinabulin in combination with checkpoint inhibitors in SCLC at the American Society of Clinical Oncology Annual Meeting)
    ALLK +2.1% (data at Digestive Disease Week 2021)
    LU +1.7% (authorized $300 mln American depositary shares share repurchase program for the next six months)
    AMC +1.4% (issues statement regarding Wanda Group’s sale of stake)
    TLC +1.4% (subsidiary highlights encouraging data on ISPM21 and ISPM19)
    MRNA +1.2% (Moderna and Samsung Biologics agree to fill-finish manufacturing of Moderna’s COVID-19 vaccine)
    USO +1% (in sympathy with crude oil futures)
    DCRB +1% (Hyzon Motors announces strategic collaboration with Sojitz Machinery Corporation of America)

    Analyst comments:

    SHLS +3.6% (upgraded to Outperform from Neutral at Credit Suisse)
    HPQ +2.1% (upgraded to Outperform from Underperform at Bernstein)
    OLLI +1.6% (upgraded to Equal-Weight from Underweight at Morgan Stanley)
    NTR +0.9% (upgraded to Buy from Hold at HSBC Securities)


    [color=green][size=5][b]Dow 34,393.98 186.14 0.54%
    S&P 500 4,197.05 41.19 0.99%
    Nasdaq 13,661.17 190.18 1.41%
    GlobalDow 4,041.93 19.11 0.48%
    Gold 1,883.40 6.70 0.36%
    Oil 66.00 2.42 3.81%[/b][/size][/color]


    [color=purple]At the airport, checking in at the gate when an airport employee asked,
    ‘Has anyone put anything in your baggage without your knowledge?’
    To which I replied, ‘If it was without my knowledge, how would I know?’
    He smiled knowingly and nodded, ‘That’s why we ask.'[/color]


    [color=purple]When my wife and I arrived at a car dealership to pick up our car after a
    service, we were told the keys had been locked in it.
    We went to the service department and found a mechanic working feverishly to unlock the driver’s side door.
    As I watched from the passenger side, I instinctively tried the door handle and discovered that it was unlocked.
    ‘Hey,’ I announced to the technician, ‘its open!’
    His reply, ‘I know. I already did that side.'[/color]


    [color=purple]We had to have the garage door repaired.

    The repairman told us that one of our problems was that we did not have a ‘large’ enough motor on the opener.
    I thought for a minute, and said that we had the largest one made at that time, a 1/2 horsepower.
    He shook his head and said, ‘You need a 1/4 horsepower.’
    I responded that 1/2 was larger than 1/4 and he said, ‘NOOO, it’s not. Four is larger than two.’

    We haven’t used that repairman since…[/color]


    Overnight Summary — World markets sustaining strength

    The global equity markets continue to tack on gains. S&P Futures are trading about 14 points higher to around the 4207 area. The market has seen a slow but steady rise culminating with a high at 4212.75. The low was established within the first hour of trading at 4195.25.

    In Asia, China posted a gain of over 2%, while Japan rose by 0.7%. The strength in the Shanghai stemmed from comments from the state which talked down the threat of rising commodity prices. This enabled the Chinese benchmark to close at its highest level in two months. In Japan, the Nikkei was led by a solid performance in technology. Semiconductor names such as Advantest and Tokyo Electron outpaced the market with gains of around 2%.

    In Europe, the major bourses are trading higher, but the DAX is outperforming. The German IFO surveys seem to be contributing to the strength after all three components beat expectations. This overshadowed a slight downward revision in Q1 GDP. Similar to Asia, semiconductors are strong in the EU. Chipmaker Infineon is up nearly 3% thus far.


    Gapping up
    In reaction to earnings/guidance:

    TIGR +6.9%, MMYT +5.3%, NDSN +4.2%, CRMT +4.1%, ARCE +2.7%

    Other news:

    TLC +12.1% (receives approval of NDA of Liposomal Amphotericin B in India)
    JYNT +10.8% (to be added to the S&P SmallCap 600)
    PSTI +8.9% (to receive EUR20 mln in non-dilutive funding from the EIB)
    SRRK +8.3% (apitegromab granted Fast Track designation for Spinal Muscular Atrophy)
    TGTX +6.8% (FDA has accepted the Biologics License Application for ublituximab in combination with UKONIQ)
    TLSA +5.6% (initiates clinical trial in a secondary progressive multiple sclerosis patient)
    GSMG +4.1% (commences the commercial applications of its blockchain and NFT technologies through its digital copyright management platform)
    HYFM +3.3% (to acquire House & Garden)
    YTRA +2.4% (stock offering and mixed shelf offering)
    OCN +2.1% (to acquire $48 bln in bulk servicing rights from AmeriHome Mortgage)
    LAD +1.8% (announces the acquisition of three Hyundai dealerships in LV)
    CONE +1.6% (names new Chair of Board)
    ONEM +1.5% (reports that a longitudinal study finds that its primary care model delivers outsized impact in controlling diabetes)
    FSR +1.5% (selects ServiceNow (NOW) solutions to accelerate electric vehicle product development)
    AUTL +1.4% (announces an additional nature publication for AUTO1)
    UAL +1.4% (has experienced an acceleration in ticketed yields for the second quarter, ahead of previous expectations)
    ATSG +1.1% (announces lease with DHL to provide four additional Boeing 767 freighters)
    BA +1.1% (receives order for 14 Boeing 737 MAX Jets from SMBC Aviation Capital)

    Analyst comments:

    SHAK +5.5% (upgraded to Buy from Neutral at Goldman)
    CGC +4% (upgraded to Buy from Neutral at MKM Partners)
    TELL +3.3% (upgraded to Buy from Hold at DNB Markets)
    DK +2.7% (upgraded to Overweight from Neutral at Piper Sandler)
    DHT +2.6% (upgraded to Outperform from In-line at Evercore ISI)
    APPN +2.3% (upgraded to Neutral from Underperform at Macquarie)


    Gapping down

    In reaction to earnings/guidance:

    RIDE -12.5%, DY -3.2%, HA -0.9%

    Other news:

    TLMD -9.9% (stock offering)
    EAF -6.7% (stock offering by selling shareholders)
    RIOT -4.7% (names new Exec Chair)
    JBT -4.1% (to offer $350 mln aggregate principal amount of convertible senior notes due 2026 in a private offering)
    AZEK -3.3% (stock offering)
    REXR -2.6% (prices offering of 9 mln shares of common stock for gross proceeds of $500.4 mln)
    OSH -2.5% (stock offering)
    BALY -2.2% (enters mobile sports betting market with launch of beta version of mobile sportsbook in Colorado)
    ALK -1.8% (provides update on its Q2 outlook for various measures)

    Analyst comments:

    VKTX -1.2% (downgraded to Outperform from Strong Buy at Raymond James)
    DPZ -0.7% (downgraded to Neutral from Buy at Goldman)

    Helmholtz Watson

    [color=purple][size=5][b]The US court removes #Xiaomi from restricted list due to links with the Chinese military
    – No restrictions on the firm in the US now.[/b][/size][/color]

    Helmholtz Watson

    The following options are exhibiting notable trading, potentially indicating changing sentiment toward the underlying stocks, and/or potentially representing positioning for increased volatility.

    Bullish Call Activity:

    DOYU Aug 7.5 calls are seeing interest with the underlying stock up 8% (volume: 5690, open int: 40, implied vol: ~86%, prev day implied vol: 75%). Co is expected to report earnings early August.
    ENV Jul 80 calls (volume: 1660, open int: 0, implied vol: ~31%, prev day implied vol: 27%). Co is expected to report earnings early August.
    SU Weekly May28 23.5 calls (volume: 2010, open int: 270, implied vol: ~39%, prev day implied vol: 34%). Co is scheduled to present at an investor day tomorrow. Co is expected to report earnings early August.

    Bearish Put Activity:

    LOW Weekly May28 187.5 puts (volume: 1260, open int: 240, implied vol: ~26%, prev day implied vol: 24%). 1100 contracts traded in a single transaction. Co is expected to report earnings mid-August.
    TEVA Jun 11 puts (volume: 4750, open int: 5380, implied vol: ~39%, prev day implied vol: 37%). Co is expected to report earnings late July.
    Sentiment: The CBOE Put/Call ratio is currently: 0.79, VIX: (18.82, +0.42, +2.2%).
    June 18 is options expiration — the last day to trade June equity options.
    *Please use the Talk to Us link at the top of the page to provide feedback on this comment as well as the OPTNX comments.

    Helmholtz Watson

    The following are some of today’s most notable mid cap movers of interest ($2 bln – $10 bln market cap), ranked by % change (all stocks over 100K average daily volume).

    Mid Cap Gainers

    SHAK (90.75 +7.28%): Pushing up against resistance at 20-day Moving Average (92.21) after the burger chain was upgraded at both Goldman and Wedbush this morning
    API (42.2 +4.48%): Rallying off morning lows after the Co beat on the topline and reaffirmed FY 21 guidance yesterday
    CGC (23.96 +5.64%): Looking to take back 20-day Moving Average (24.34) after MKM upgraded to Buy from Neutral

    Mid Cap Losers

    JBT (127.75 -5.29%): Falling to lowest level since February after the Co filed for a $350 mln offering of convertible notes
    CBRL (153.18 -4.8%): Losing initial 2-3% pop following a blowout Q3 report
    TPTX (67.16 -4.87%): Selling off after failing to break 20-day Moving Average (71.19); the Co also announced former Celgene chairman and CEO, Mark Alles, to chair its Board

Viewing 15 posts - 1 through 15 (of 24 total)
  • You must be logged in to reply to this topic.