You Want A Big Market Move? Look For A Catalyst–Like This, For Instance
Look For A Catalyst For A Move
As a trader, you need to be aware of potentially
market-moving events throughout the trading day. Sometimes these events come out
of the blue; other times you have a little heads up on them. For instance, the
oil inventory numbers are reported each Wednesday at 10:30 AM ET, and for some
time now this report has had the potential to be market-moving event. If the
actual reported numbers differ greatly from the consensus, the catalyst for a
move is in place.
Last Wednesday, the market was moving down ahead
of the number. Just ahead of the announcement, the market flattened out and
popped as soon as the report was released. The 10:30 AM bar was worth 39 Dow
points–or $195 on one mini-sized Dow contract (trade five of these and
do the math).
I have seen the market drop on a good
announcement, too, so this does not work 100% of the time. I think the key is
looking at the trend going into the number and especially the size of the move.
If you have a large rally ahead of the announcement, it’s very unlikely to
extend after the report. Conversely, as the above example above shows, a slump
into the number makes a further drop that much less likely. As it turned out,
the 10:20 AM bar was the low of the day!
Watch for these in the future…and make sure you
keep your stops in!
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The New, Improved
TradersWire
If you haven’t been in TradersWire for a while,
swing by next week–you’ll be pleasantly surprised. We’ve made a lot of changes,
including precise buy and sell alerts on stocks and E-minis and Mini-sized Dow
contracts, expanded education and trading tips. And as always, there are some
good traders in the chat room. I’m not ashamed to say that I’ve learned a lot
from some of these traders through the years, and I’m willing to bet you could
learn something, too.
 So
come on by, we’ll
see you in
TradersWire on Monday.
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Big Cap
Earnings Announcements for the Week of
May 2nd
Company |
Symbol |
Date |
| Accredo Health | ACDO | Monday, May 2 |
| Avon Products | AVP | Monday, May 2 |
| Brookfield Homes | BHS | Monday, May 2 |
| Career Education | CECO | Monday, May 2 |
| Chesapeake Energy |
CHK | Monday, May 2 |
| Electronic Data Systems |
EXC | Monday, May 2 |
| Humana Inc. | HUM | Monday, May 2 |
| Landry’s Restaurants |
LNY | Monday, May 2 |
| Nortel Networks | NT | Monday, May 2 |
| Tyson Foods | TSN | Monday, May 2 |
| WebMethods | WEBM | Monday, May 2 |
| Brooks Automation |
BRKS | Tuesday, May 3 |
| Cephalon | CEPH | Tuesday, May 3 |
| Charles River Labs |
CRL | Tuesday, May 3 |
| Coventry Health | CVH | Tuesday, May 3 |
| Electronics Arts | ERTS | Tuesday, May 3 |
| Healthnet | HNT | Tuesday, May 3 |
| Henry Schien | HSIC | Tuesday, May 3 |
| Kos Pharmaceuticals |
KOSP | Tuesday, May 3 |
| Las Vegas Sands | LVS | Tuesday, May 3 |
| Macromedia | MACR | Tuesday, May 3 |
| Marsh & McLennan | MMC | Tuesday, May 3 |
| Maxim Integrated | MXIM | Tuesday, May 3 |
| Perot Systems | PER | Tuesday, May 3 |
| Qwest Communications |
Q | Tuesday, May 3 |
| Safeway | SWY | Tuesday, May 3 |
| Sharper Image | SHRP | Tuesday, May 3 |
| St. Paul Travelers |
STA | Tuesday, May 3 |
| Tenet Healthcare | THC | Tuesday, May 3 |
| Beckman Coulter | BEC | Wednesday, May 4 |
| CB Richard Ellis | CBG | Wednesday, May 4 |
| CIGNA | CI | Wednesday, May 4 |
| Credit Suisse Group |
CSR | Wednesday, May 4 |
| Dean Foods | DF | Wednesday, May 4 |
| Duke Energy | DUK | Wednesday, May 4 |
| Education Management Corp. |
EDMC | Wednesday, Apr 27 |
| Expeditors International |
EXPD | Wednesday, May 4 |
| Legg Mason | LEG | Wednesday, May 4 |
| Maxtor | MXO | Wednesday, May 4 |
| Peet’s Coffee & Tea |
PEET | Wednesday, May 4 |
| THQ Inc | THQI | Wednesday, May 4 |
| United Rentals | URI | Wednesday, May 4 |
| Zebra Technologies |
ZBRA | Wednesday, May 4 |
| Activision | ATVI | Thursday, May 5 |
| Apartment Investment & Management |
AIV | Thursday, May 5 |
| Barr Pharmaceuticals |
BRL | Thursday, May 5 |
| Biovail | BVF | Thursday, May 5 |
| Blockbuster | BBI | Thursday, May 5 |
| Coinstar | CSTR | Thursday, May 5 |
| Corrections Corp. of America |
CXW | Thursday, May 5 |
| Cytec Industries | CYTC | Thursday, May 5 |
| Dollar Tree Stores |
DLTR | Thursday, May 5 |
| Enzon Pharmaceuticals |
ENZN | Thursday, May 5 |
| ICOS | ICOS | Thursday, May 5 |
| McAfee | MFE | Thursday, May 5 |
| Open Text | OTEX | Thursday, May 5 |
| Public Storage | PBG | Thursday, May 5 |
| SINA | SINA | Thursday, May 5 |
| Weight Watchers | WTW | Thursday, May 5 |
| Allied Capital | ALD | Friday, May 6 |
| Millis Corp | MLS | Friday, May 6 |
| National Oilwell Varco |
NOV | Friday, May 6 |
| Wild Oats | OATS | Friday, May 6 |
Scheduled Stock Splits for the Week of
May 2nd
Company |
Symbol |
Ratio |
Payable |
Ex-Date |
| Healthcare Services Group | HCSG | 3-2 | May 2 | May 3 |
| Timberland | TBL | 2-1 | May 2 | May 3 |
| Featherlite | FTHR | 3-2 | May 4 | May 5 |
| Gentex | GNTX | 2-1 | May 6 | May 9 |
Need more splits information? Click
here.
Upcoming Economic Events for the Week of
May 2nd
| Date | ET | Release | For | Consensus | Prior |
| May 02 | 10:00 am |
Construction Spending | Mar | 0.3% | 0.4% |
| May 02 | 10:00 am |
ISM Index | Apr | 55.0 | 55.2 |
| May 03 | 12:00 pm |
Auto Sales | Apr | 5.4M | 5.5M |
| May 03 | 12:00 pm |
Truck Sales | Apr | 7.9M | 7.9M |
| May 03 | 10:00 am | Factory Orders | Mar | 0.4% | 0.2% |
| May 03 | 2:15 pm | FOMC Policy Announcement |  |  |  |
| May 04 | 10:00 am | ISM Services | Apr | 61.3 | 63.1 |
| May 05 | 8:30 am | Initial Jobless Claims | 4/30 | NA | 320K |
| May 05 | 8:30 am | Productivity (Prelim) | Q1 | 2.5% | 2.1% |
| May 06 | 8:30 am | Nonfarm Payrolls | Apr | 170K | 110K |
| May 06 | 8:30 am | Unemployment Rate | Apr | 5.2% | 5.2% |
| May 06 | 8:30 am | Hourly Earnings | Apr | 0.2% | 0.3% |
| May 06 | 8:30 am | Average Workweek | Apr | 33.7 | 33.7 |
| May 06 | 3:00 pm | Consumer Credit | Mar | $6.1B | $5.6B |
Have a great weekend!
Brice
P.S. Stay in touch with the latest happenings at TradingMarkets.com.
Check
What’s New @ TradingMarkets on a regular basis.
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