Index and Earnings Options Play List for 8/17/2020

Bulls Get Weekly Win Despite Friday’s Flat Action

The market lost ground on Friday following a flood of economic news and inaction from Congress on developments for a coronavirus relief package. No deal was announced on that front as lawmakers have broken for recess until Labor Day.

Despite the flat session, the major indexes posted another winning week and remain on track to test old and new higher highs after advancing their winning streaks to 3 and 4 weeks.

The Nasdaq tested a low of 10,972 before finishing at 11,019 (-0.2%). Current support at 11,000 was breached but held with a close below this level indicating additional downside weakness towards the 10,750 area.


The Dow settled slightly higher despite tapping an intraday low of 27,759 while finishing 27,931 (+0.1%). Key support at 27,750 was challenged but held for the 3rd-straight session with a move below this level getting 27,250 back in focus.


The S&P 500 traded to a low of 3,361 before ending at 3,372 (-0.02%). Near-term support at 3,350 was challenged but held with a move below this level suggesting further weakness towards the 3,300 area.


The Russell 2000 closed at 1,577 (-0.1%) after tagging a morning low of 1,567. Crucial resistance at 1,575 was tripped but held with a close below this level suggesting a further pullback towards the 1,550 level. Below is a chart of the IWM.


Monday’s (8/17/2020) earnings announcements (JD, CWCO, BEST…)

Monday’s (8/17/2020) earnings announcements:

Before the open: Consolidated Water (CWCO), Eagle Point Credit (ECC), Gulf Resources (GURE), (JD), Milestone Scientific (MLSS), Niu Technologies (NIU), SWK Holdings (SWKH)

After the close: Americas CarMart (CRMT), Best (BEST), China Biologic Products (CBPO), Dolphin Entertainment (DLPN), Edison Nation (EDNT), Fabrinet (FN), Progressive Care (RXMD), Social Reality (SRAX)

Economic News:

NAHB Housing Market Index – 10:00am

Analyst Upgrades/ Downgrades

Analyst Upgrades/ Downgrades
Estee Lauder (EL) upgraded to Outperform from Perform at Oppenheimer
Halliburton (HAL) upgraded to Conviction Buy from Buy at Goldman Sachs
Schlumberger (SLB) upgraded to Overweight from Equal Weight at Wells Fargo
Baker Hughes (BKR) downgraded to Buy from Conviction Buy at Goldman Sachs
BJ’s Wholesale (BJ) downgraded to Hold from Buy at Deutsche Bank
Deere (DE) was downgraded to Underweight from Neutral at JPMorgan Index and Earnings Options Play List for 5/5/2020

Before the open: AMC Networks (AMCX), Black Knight (BKI), Dominion Energy (D), Fiat Chrysler Automobile (FCAU), Gladstone Capital (GLAD), Haemonetics (HAE), Incyte (INCY), Jones Lang LaSalle (JLL), L3Harris Technologies (LHX), LendingTree (TREE), MGM Growth Properties (MGP), Newmont Mining (NEM), Premier (PINC), Sealed Air (SEE), TopBuild (BLD), US Foods Holding (USFD), Wayfair (W)

After the close: Activision Blizzard (ATVI), Beyond Meat (BYND), Cheesecake Factory (CAKE), Devon Energy (DVN), Electronic Arts (EA), FMC (FMC), Hackett Group (HCKT), Inogen (INGN), Jazz Pharmaceuticals (JAZZ), L.B. Foster (FSTR), Match Group (MTCH), Nautilus (NLS), Otter Tail (OTTR), Pinterest (PINS), Planet Fitness (PLNT), Retail Properties of America (RPAI), SBA Communications (SBAC), T2 Biosystems (TTOO), Vapotherm (VAPO), Walt Disney (DIS), Western Union (WU), Zogenix (ZGNS)

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Checking in on Volatility

The S&P 500 Volatility Index ($VIX) fell for the 3rd-straight session despite trading to a high of 16.32 shortly after the open. Lower resistance at 16.50-17 was challenged but held. A close back above the 17.50 level would be a bearish development with risk towards 19.50-20.

Upper support at 15.50-15 was recovered on the late day fade to 15.02 afterwards. A close below the latter and the 200-day moving average would be an ongoing bullish signal but with more important recovery levels at 14-13.50 and the 50-day moving average.


iShares Russell 1000 (IWF) Update for 1/2/2020

The iShares Russell 1000 (IWF) snapped a 2-session losing streak with the late day peak reaching $176.06. Near-term and lower resistance at $176-$176.50 was cleared but held. A close above the latter would be a bullish signal for a retest towards $177.50-$178 and fresh record highs.

Current support is at $175-$174.50. A close below the $174 level would signal a near-term top with additional risk towards $173-$172.50.

RSI is trying to level out after holding support at 70. A close below this level would signal additional weakness towards 65-60. Resistance is at 75-80 with the latter representing overbought conditions from last week and January 2018.