Morning Note – 2/20/19

Fun Fact & Considerations–  Currently, there are 443 out of 500 that have positive volume.  Issues above their 50 day and 200 day moving averages continue to improve. In After Hours Trading IPOs on deck This Week:  Two on deck were scheduled for this week including  Acamar Partners Acquisition and DiamondPeak Holdings.  IPOs on deck for…

Fun Fact & Considerations–  Currently, there are 443 out of 500 that have positive volume.  Issues above their 50 day and 200 day moving averages continue to improve.

In After Hours Trading

IPOs on deck This Week:  Two on deck were scheduled for this week including  Acamar Partners Acquisition and DiamondPeak Holdings

IPOs on deck for Today: None of note.

Secondaries on deck:  AI ARR CPT NRZ OVID SNNA of note. 

Convertibles on deck: FTV

IPO Filings Announced After The Close  No common stock offerings filed today.  

Announcements For Secondary Filings & Financings ARR AI CPT  files a common stock offering.  OVID files a convertible offering.

Courtesy of IPO Financial

Earnings After The Close:

Beat: CRMT +0.56, WIRE +0.45, IOSP +0.25, LNTH +0.20, HVT +0.18, TVTY +0.15, RARE +0.14, INST +0.14, LMAT +0.11, OSPN +0.09, FIVN +0.09, LZB +0.08, CDNS +0.04, HSTM +0.04, LKSD +0.04, FE +0.03, KAR +0.03, HLF +0.03, NTB +0.03, SSTI +0.03, NVTA +0.03, HST +0.02, TILE +0.02, EVBG +0.01, TXRH +0.01, CXW +0.01


Missed: FANG (0.40), DVN (0.23), FARO (0.19), CXO (0.18), NTRI (0.13), QUAD (0.06), AGR (0.06), VRSK (0.03), LC (0.03), AJRD (0.01), AWK (0.01), ACC (0.01)

Positive Guidance: CDNS HSTM 

Mixed Guidance:


News After The Close:

Waste Connections (WCN) CEO and Chairman Ronald Mittelstaedt takes temporary leave to address health matter for him and his family.

Rockwell Automation (ROK) and Schlumberger (SLB) enter a joint venture to create a new entity Sensia, integrated oilfield automation solutions provider.

Cadence Design (CDNS) invests $150 million in Green Hills Software.

Teva Pharmaceutical (TEVA) and the FTC announcement they have resolved all litigation.

Dividend Increase: DVN AGI ROIC

Stock Repurchase Announcement: 

Hourly Action This Past Week:

Intraday action remains strong since the beginning of the year. However, the last two weeks have seen mixed action. Intraday action usually leads trend changes. Yesterday was a positive day.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures 

U.S. futures: S&P -2.75, Dow Jones -35,  NDX -2 and Russell 2000 -2.00  with fair values HIGHER ADDING TO LOSSES.  Asia higher  and Europe mixed (for country change click through)

Gold, silver and copper higher. WTI Crude and Brent Oil Futures lower. Natural Gas is higher. $ is higher vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 122.31 with yields lower since Tuesday morning with the yield at 2.632% from 2.664%. Prices as of 8:10 a.m. EDT.

Top Sectors Tuesday: Materials, Services, Utilities and Conglomerates.

Weakest Sectors Tuesday: Healthcare.

One Month Winners:  Industrial Goods, Technology, Consumer Goods and Services.

Three Month Winners: Technology, Industrials, Utilities and Services.

Six Month Winners: Utilities, Healthcare and Industrials.

Twelve Month Winners: Utilities, Healthcare and Conglomerates.

Year to Date: All higher led by Industrial Goods, Conglomerates, Materials, Services, Technology and Financials.

Upcoming Earnings Of Note (sorted by market cap, highest to lowest):

Today After The Close: ET NTES A ES O TS SNPS EFX GDDY EXR FTI SUI Y of note.

Thursday Before The Open:  HRL NEM TFX DPZ NCLH MLCO OGE VER BG GIL of note.

Earnings This Morning Of Note:

Beat Estimates: HFC +0.30, GRMN +0.22, BHC +0.21, ETR +0.19, VNTR +0.13, OC +0.11, WIX +0.10, CVS +0.08, LAMR +0.07, WWW +0.03, IPHS +0.03, BDC +0.03, AROC +0.03, NI +0.02, SO +0.02, HSIC +0.01


Missed Estimates:  GEL (0.50), GVA (0.46), I (0.42), FMS (0.10), DAKT (0.04), GCI (0.01)

Rags & Mags:

Top Story: China claims any new tariffs would “catastrophic” for global stocks. (Global Times)

5 Things You Need To Know To Start Your Day (Bloomberg) –  China trade talks continue,  Wall challenges, Brexit deadline, markets quiet and economic data due out.

President Trump says corn exports may be included in trade deal. (Bloomberg)

Tesla (TSLA) CEO Elon Musk notes that may get to 500,000 vehicles a year or 10,000 a week.

Tesla (TSLA) may offer leasing for its car fleet. (Electrek)

Tesla (TSLA) newest General Counsel Dane Butswinkas leaves.

UBS faces a $3. billion fine after a French court rules against it.

Apple (AAPL) wants developers to write across all platforms, immediately. (Bloomberg)

Google (GOOGL) developing a game streaming service. (Fortune)

Data Points:

Yesterday saw 1846 stocks rise and 1035 fall on the NYSE. NASDAQ saw 1905 rise and 1173 fall.

The SP 500 is still above its 50 day simple moving average and now above its 200 day simple moving average. The Russell 2000 is also above its 50 day simple moving average but below its 200 day simple moving average. The Dow is also above its 50 day simple moving average  and also above its 200 day simple moving average.  All three indexes are now above their 5, 10 and 20 day moving averages. 

The QPI10 Day Moving Average of Breadth (10DMA) moved to buy on January 7th at 2549.69. For a move to a buy from cash, the 10DMA needed to have two days in row above +200 which happened January 7th. The next move will be to cash or sell which right now seems a long ways off. 

Courtesy of Quantitative Partners, Inc

YTD  86% of stocks are higher and 12% are lower. Updated 2/8/19 close with next update on 2/15/19 close.

Courtesy of Phil Erlanger Research, Inc.


The week ended on a strong note. It began on a decent note but faded from 3:00 onward. All indexes closed under resistance. The table below will be updated tonight.

The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range. 

Economic & Related: 

MBA Mortgage Applications rose 3.6% week over week and last week fell -3.7%.

API Petroleum Institute Data due out at 4:30 p.m. EDT.


China Mid Level Trade Talks continue in Washington D.C. this week.

Federal Reserve Open Market Committee (FOMC) Minutes out at 2:00 p.m. EST.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: RTTR (conference call)

Sellside Conferences: Citi Global Industrials Conference. Barlcays Select Industrials Conference.

Industry Conferences: Consumer Analysts Group of New York Conference, National Association of Home Builders Show.

M&A News & Rumors:

Intl Flavors & Fragrance (IFF) buys The Additive Advantage, no terms.

Hormel (HRL) sells CytoSport unit to Pepsi (PEP), no terms.

Amedisys (AMED) to buy RoseRock Healthcare.

Tilray (TLRY) to buy FHF Holdings for $419 million in cash and stock.

Carrol’s Restaurant Group (TAST) to buy 166 Burger King and 55 Popeyes from Cambridge Franchise Holdings.

Significant Upgrades (to buy) & Downgrades (to sell or underweight)

Best Downgrade: Goldman downs Southwest Airlines as problems continue to arise there.

Pre-Market Movers:

Winners: CRMT +9% GRMN +8% LYG +6%.

Losers: WIX -9% CVS -6% WWW -4%.