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!

 

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.

 

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


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