Monday, October 6, 2014

Oct 06 2014

Profitable day without any fireworks. Kind of almost like work. Joking around helps, especially since my typing gives countlless reasons for jokes.

Close Market Snapshot
US Indices:
- Dow Jones -0.1%
- S&P500 -0.1%
- Nasdaq -0.4%

- Basic materials (the worst performer of 2014) is the leading sector in today's session, while the year's standout Healthcare is the laggard. ADR of Rio Tinto is up a whopping 9% on chatter of potential bid interest from Glencore, while BHP and Vale are up 1.3% and 2.5% respectively. Newmont is up 1.9% amid strong gains in precious metals, and Alcoa is also up a notable 2.5% ahead of this week's earnings. Brazil ETF (EWZ) is up over 6% following a surprisingly strong showing by pro-business candidate Neves in the first round of elections. HPQ is also a standout with a 5% jump after confirming overnight speculation of a split into two entities. Downside in Healthcare is led primarily by insurers, with WLP and AET down over 2%. Among the sector gainers, CFN and BDX are up 23% and 7% respectively after announcing an acquisition of the former by the latter.

Fixed-Income: Mean reversion / post-NFP profit taking are the theme in US fixed income FX trading in an otherwise quiet Monday. In European periphery, Greece 10-yr yield rose about 11bps and Spain just over 4bps. France 10-yr yield is down 1bps on the heels of decent demand in this morning's bill auction in spite its budgetary turmoil.
- 2-yr: -3bps at 0.53%
- 10-yr: -1bps at 2.42%;
- 30-yr: -1bps at 3.12%;
- 2-10 spread: -2bps at 1.89%

- WTI Nov crude oil contract briefly fell back below $89/brl but held last week's support above $88, returning back above $90 into the pit close.

Metals: Notable rebound in base and precious metals, mainly on profit-taking in USD longs. Possibility of further consolidation in the mining industry (Glencore discussing possible joint bid with Chinalco for Rio Tinto as early as next year) also cited.
- Spot Gold $1,207/oz; Biggest single day increase since June 18th, erases post-NFP drop.
- Spot Silver $17.33/oz; Biggest single day increase since June 18th
- Dec Copper $3.035/lb; First rise after 2 consecutive declining sessions.

Earnings at the close:

Looking ahead to Asia:
- RBA Policy Decision 23:30ET
- BOJ Policy Decision TBD

Session Start: Mon Oct 06 03:01:53 2014

[08:56] {dino} gm 3i
01[08:56] {@Threei}  morning dino
01[09:19] {@Threei}  [FB] FB Reportedly working on mobile payments using Messenger app - tech blogs The screenshots and code from the app show a method for adding a credit or debit card to a Facebook
01[09:19] {@Threei}  oh good
[09:20] {ese} morning
01[09:20] {@Threei}  ese :)
[09:21] {troub} good morning
01[09:21] {@Threei}  troub :)
[09:21] {ese} vad troub
[09:22] {dino} adhd, i'm missing something
[09:24] {jfjf64} mornin
01[09:24] {@Threei}  jf :)
01[09:24] {@Threei}  no idea dino... study report looks good
[09:25] {nemo} How's your depth of book on SPY vad?
01[09:26] {@Threei}  first two levels OK, some gap after that
01[09:26] {@Threei}  3 levels
[09:27] {RonS} gm...adhd...hearing 3 of 4 outlier patients came from one site:
01[09:28] {@Threei}  ron :)
01[09:32] {@Threei} Long Setup:  FB  .30 break
01[09:32] {@Threei}  If holds  .20
01[09:33] {@Threei}  1:1
01[09:34] {@Threei}  Upside:
01[09:34] {@Threei}  -DRTX +78% (being acquired by ACT for $23/shr)
01[09:34] {@Threei}  -UNIS +65% (signed 15-yr commercial agreement for wearable injectors with SNY)
01[09:34] {@Threei}  -CFN +25% (being acquired by BDX for $12.2B or $58/shr)
01[09:34] {@Threei}  -PBR +18% (new natgas finding at offshore well in Espirito Santa Basin)
01[09:34] {@Threei}  -DGLY +12% (new $600K purchase orders from Mexican federal police)
01[09:34] {@Threei}  -EWZ +11% (Brazil loan data & elections results)
01[09:34] {@Threei}  -ITUB +11% (Brazil loan data & elections results)
01[09:34] {@Threei}  -CMRX +8% (emergency approval for Brincidofovir authorized by FDA for use in patients with Ebola)
01[09:34] {@Threei}  -BDX +8% (acquiring CFN)
01[09:34] {@Threei}  -HPQ +6% (guided initial FY15 Rev; actively looking for M&A transactions)
01[09:34] {@Threei}  -CONN +6% (exploring strategic alternatives)
01[09:34] {@Threei}  -TASR +5% (new deal with Dallas police for X26P Smart Weapons)
01[09:34] {@Threei}  -VALE +5% (Brazilian data & elections)
01[09:34] {@Threei}  Downside:
01[09:34] {@Threei}  -SNSS -70% (Phase 3 trial of Vosaroxin and Cytarabine in Myeloid Leukemia missed primary endpoint)
01[09:34] {@Threei}  -ADHD -40% (disclosed top-line results of Phase 3 study of MDX in adult ADHD)
01[09:34] {@Threei}  -HRB -8% (updates expected timing of bank transaction for acquisition of BofI Federal Bank)
01[09:34] {@Threei}  -TKMR -7% (low number of new Ebola infections)
01[09:36] {@Threei} Long Setup:  VXX  .90 break
01[09:37] {@Threei}  If holds  .80
01[09:39] {@Threei}  let's tighten to .84 now
01[09:40] {@Threei}  meh
01[09:41] {@Threei} Long Setup:  TWTR  .15 break
01[09:41] {@Threei}  If holds  .05
01[09:42] {@Threei}  no go
01[09:46] {@Threei} Long Setup:  IWM  .90 break
01[09:46] {@Threei}  If holds  .80
01[09:48] {@Threei}  1:1
[09:49] {dino} lvnta sm l .13
01[09:56] {@Threei} Long Setup:  RIG  .75 break
01[09:56] {@Threei}  If holds  .65
01[09:59] {@Threei}  1:1
01[10:04] {@Threei} Long Setup:  HPQ  37 break
01[10:04] {@Threei}  hl
01[10:04] {@Threei}  if .90
01[10:05] {@Threei}  1:2  RIG
01[10:06] {@Threei}  meh HPQ
01[10:17] {@Threei} Long Setup:  TZA  .80 break
01[10:17] {@Threei}  If holds  .75
01[10:17] {@Threei}  just a scalp most likely
01[10:20] {@Threei}  half out
01[10:20] {@Threei}  1:1
[10:23] {dino} adhd l .30
01[10:25] {@Threei}  stop to .84
01[10:38] {@Threei}  RIG nears the gap
01[10:39] {@Threei}  looking for long setup
01[10:40] {@Threei}  jimped...
01[10:40] {@Threei}  i=u
[10:41] {ese} L adhd.40 sm
01[10:43] {@Threei}  ugh... RIG really got away
[10:43] {jfjf64} yup
[10:43] {ese} thats a stock with good fundamentals vad.....have been following it for a very long time....really surprised at the slide
01[10:45] {@Threei}  life is unfair
[10:45] {ese} if adhd gets through .60's going for a long way
[10:45] {ese} indeed
[10:47] {RonS} gtat = widowmaker
[10:47] {dino} you had to say that, just died
[10:48] {ese} higher low
01[10:48] {@Threei}  GTAT Halted: circuit breaker after resuming down 90%
01[10:48] {@Threei}  lol
[10:49] {ese} thats the Rusian Sub K19....nuclear sub....true story or something like that
[10:50] {ese} They called it the widow maker
01[10:51] {@Threei} Short Setup: GLD  .45 break
01[10:52] {@Threei}  If holds  .55
[10:52] {RonS} gtat filed chap said he wants to "strengthen balance sheet"...criminal
01[10:52] {@Threei}  that's one way to do it
[10:53] {RonS} thinkin ceo is cousin of Putin...
01[10:53] {@Threei}  what was the company years ago... announced voluntary delisting and claimed it was great for shareholders
01[10:53] {@Threei}  Invalidated  GLD
01[10:54] {@Threei}  most curious thing to me was, some of the holders discussing it actually managed to agree with it and somehow pretend it was a good thing
01[10:55] {@Threei}  Stokholm syndrom?
[10:55] {nemo} bounce time
01[10:55] {@Threei} Long Setup:  IWM  109 break
01[10:55] {@Threei}  If holds  .95
01[10:55] {@Threei}  very tight stop
01[10:58] {@Threei}  come on SPY, really time to recover
01[10:58] {@Threei}  1:1
01[10:58] {@Threei}  play by the book
01[10:58] {@Threei}  half out, stop .99
01[10:59] {@Threei}  if this is real bottom, 1:3 easy
[10:59] {jfjf64} hopey
01[10:59] {@Threei}  if not, let's pritect against crash
01[10:59] {@Threei}  i=o
01[10:59] {@Threei}  monday typing
01[10:59] {@Threei}  (which in my case is not much different from any other day typing)
[11:00] {jfjf64} r ya writing in russian
01[11:00] {@Threei}  yeah, just using english letters
01[11:01] {@Threei}  and for the most part incorrectly
01[11:02] {@Threei}  I mean, I just learned last week that "korreqt" is not how you spell it
01[11:02] {@Threei}  1:2
01[11:02] {@Threei}  good boy SPY
01[11:03] {@Threei}  btw, when I asked nemo why he taught me that spelling, his excuse was: What do you want from a lost fish?
[11:04] {RonS} lol
01[11:05] {@Threei}  .80 is a problem for SPY
01[11:05] {@Threei}  firmer support
01[11:05] {@Threei}  former
01[11:05] {@Threei}  sheesh
01[11:09] {Threei}  server hiccup
[11:10] {RonS} nemo hack?
01[11:10] {Threei}  I suspect so
01[11:10] {Threei}  revenge of the fish
[11:13] {nemo} I'm not a fish
01[11:13] {Threei}  mad captain of a submarine?
[11:13] {nemo} no
[11:14] {jfjf64} got kicked off
01[11:14] {Threei}  that's nemo's doing, jf
[11:14] {nemo} Odysseus to you
01[11:14] {Threei}  he is offended that we can't figure out this ancient Greek thingy
01[11:15] {Threei}  closed balance IWM
[11:15] {nemo} not really...I would expect as much from such Cretins
[11:15] {nemo} ;.-)
[11:16] {nemo} I thought that was rather witty, in a snobbishly arrogant sort of way
01[11:16] {Threei}  capitalizing the word is a sign of respect, right?
[11:16] {nemo} no...a proper noun
01[11:17] {Threei}  ah well... I was just trying to give you an easy way out :)
[11:17] {nemo} originally a Cretin was someone from the isle of Crete, before it took on its more perjorative meaning
01[11:18] {Threei}  is there Debile isle?
[11:18] {nemo} geography not my strong suit
01[11:19] {@Threei}  that's why that submarine eventually crashed
[11:19] {nemo} ahhh, unlike the Kursk
01[11:20] {@Threei} Long Setup:  HPQ  .95 break
01[11:20] {@Threei}  If holds  .85
[11:22] {RonS} what the L...  Feltl & Co Downgrades EZchip Semiconductor ($EZCH) to Buy
[11:25] {nemo} wow...just got an email electric company raising rates 37%
01[11:26] {@Threei}  wow
01[11:27] {@Threei}  Invalidated
[11:37] {nemo} HPQ looks short
01[11:44] {@Threei} Long Setup:  RIG  .30 break
01[11:45] {@Threei}  If holds  .20
01[11:45] {@Threei}  just a scalp most likely
01[11:46] {@Threei}  Invalidated
01[11:47] {@Threei} Long Setup:  RIG  .20 break
01[11:54] {@Threei}  server has monday blues
[11:54] {cosmo} its a roller coster
01[11:54] {@Threei}  This morning's premarket move higher in US equity markets is being dismissed as a dead cat bounce after both the Nasdaq and the S&P500 dipped into negative territory after 1.5 hours of trading.
01[11:59] {@Threei}  1:1
01[12:25] {@Threei}  slooooow
01[12:34] {@Threei}  1:2
01[12:34] {@Threei}  oh boy... 35 min to move 10 cents
[12:59] {dino} hclp sm l .16
01[13:26] {@Threei}  look at RIG
[13:26] {dino} ?
[13:28] {RonS} took hclp .18 out .95  +.77 thanks dino
01[13:28] {@Threei}  run 40 cents more after shaking out our last piece
[13:33] {dino} yw ron, gj
[13:34] {troub} dino, thanks for sharing in HCLP .20 out 45.00
[13:35] {dino} sweet
01[13:35] {@Threei}  wtg guys
[13:36] {dino} out hclp .86, +.70
[13:37] {dino} lol, you guys did better than i on my trade
[13:39] {troub} glad to do it anytime :)
[13:39] {dino} :)
[13:54] {dino} taking all day, but lvnta to .84
[14:00] {dino} to .93
[14:00] {dino} cmrx spike
01[14:02] {@Threei} Long Setup:  IWM  .20 break
01[14:02] {@Threei}  If holds  .10
[14:05] {dino} out lvnta .93, +.80
[14:06] {troub} avery good dino
[14:08] {dino} ty
[14:13] {nathan} hi guys
[14:13] {dino} hey nat
01[14:13] {@Threei}  nathan :)
[14:14] {nathan} did u have a goof day?
[14:14] {nathan} good
01[14:14] {@Threei}  not bad
01[14:14] {@Threei}  nothing outstanding
[14:49] {nathan} love vxx
01[14:50] {@Threei}  looking at it as a last hour play candidate
[14:50] {RonS} hlf gone pulp
[14:52] {RonS} gee, is the horse out of the barn yet?  Ebola screening at airports under consideration from White House and airlines:
01[14:53] {@Threei}  heh
01[14:59] {@Threei} Long Setup:  VXX  .85 break
[14:59] {cosmo} it take 7 weeks to determine if its + or -
01[14:59] {@Threei}  If holds  .75
[14:59] {cosmo} for obola
[14:59] {cosmo} ebola
01[15:02] {@Threei}  1:1
[15:05] {nathan} thx 3i
01[15:05] {@Threei}  :)
[15:09] {RonS} lol...value added:  Alcobra Ltd's PT cut by Roth Capital to $30.00. buy rating
01[15:10] {@Threei}  lol
[15:22] {nathan} gn gents cya tomorrow
01[15:24] {@Threei}  take care nathan
01[15:26] {@Threei} Long Setup:  IWM  .15 break
01[15:26] {@Threei}  If holds  .05
01[15:29] {@Threei}  change to .05 break
01[15:30] {@Threei}  change to 109 break
01[15:31] {@Threei}  If holds  .95
01[15:34] {@Threei}  nah
[15:35] {jfjf64} rats
[15:36] {jfjf64} 109 break
01[15:38] {@Threei}  second time works
[15:38] {jfjf64} 3rd
[15:38] {jfjf64} lol
[15:41] {RonS} gotta scoot...see y'all tomorrow...
01[15:41] {@Threei}  ron :)
01[15:41] {@Threei}  actually, no point in pressing on last minutes
01[15:41] {@Threei}  scooting too... have a good evening, see you tomorrow