Morning Note – 3/14/19

FunFact:  Today is National Pi Day. It is also Albert Einstein’s birthday and he did not invent Pi. The Babylonians got Pi to 3.125, close, but Archimedes is credited with the first 3.14 figure.  Pi is the ratio  of the circumference of a circle to its diameter, otherwise known as the mathematical constant π. How many…

FunFact:  Today is National Pi Day. It is also Albert Einstein’s birthday and he did not invent Pi. The Babylonians got Pi to 3.125, close, but Archimedes is credited with the first 3.14 figure.  Pi is the ratio  of the circumference of a circle to its diameter, otherwise known as the mathematical constant π. How many places can you take Pi out? 3.14159 is where I stop. Though for a while I tried to take Pi out ten decimal places with my left and right hand at the same time to get an A in statistics.

In After Hours Trading

IPOs on deck This Week: None of note this week. Next week Lyft. Levi Strausssets its range $14 to $16.

IPOs on deck for Today:None of note.

Secondaries on deck: EPRT AXGT BBW GMRE of note.

Convertible Notes on Deck: EEFT SSRM of note.

IPO Filings Announced After The Close: None filed today to go public.

Announcements For Secondary Filings & Financings:  GMRE EGAN AXGT AEP GDS  common stock offering.convertible offering. KLAC KOS SSNC issues senior notes.

Courtesy of IPO Financial

Research Alert: Erlanger Research notes that the latest short interest data came out on Tuesday and the Erlanger Committment of Short Sellers now sees smart short sellers over take dumb short sellers as 14 of the 24 sectors now see smart short sellers in control. For a full review of the data click through to our link to the full report.

Earnings After The Close:

Beat: GDS +0.32, DOMO +0.30, MDB +0.21, SMTC +0.02, FLNT +0.02, TLRD +0.01

Missed: KINS (0.20), CLDR (0.08), SFS (0.04)

Positive Guidance: DOMO FLNT MDB. 

Negative Guidance: CLDR GDS SMTC TLRD.

News After The Close:

Northrop Grumman (NOC) wins $350 million contract with the Army.

Boeing (BA) wins $250 million Air Force contract.

LATAM Airlines (LTM) sees Februray traffic +4.9%, +6.5% capacity and load factor 84.1 (-1.2%).

Ventura (CA) Fire Department says power lines started the Thomas Fire of December 2017 a negative for Edison International (EIX).

Dividend Increases: INDB 

Stock Repurchase: EQC BGS KRNY

Hourly Action This Past Week:

What a difference hourly action has seen since Friday 1:00 onward.

Courtesy of Quantitative Partners, Inc.

What’s Happening This Morning: Futures on the S&P 500 fell to 2788 by 10:45 p.m. EDT and have rallied above 2800.

U.S. futures: S&P  -2.00, Dow Jones -29.00, NDX -0.25 and Russell 2000 -1.70 with fair values LOWER LESSENING LOSSES. Asia mixed and Europe mostly higher, click through for details by country.

Gold, silver and copper lower. WTI Crude lower and Brent Oil Futures flat. Natural Gas is higher. $ is lower vs Euro, higher vs. Pound and higher vs. Yen. US 10 year Treasury price 122.66 from 122.75 with yields higher since Wednesday morning with the yield at 2.632% from 2.623%. Prices as of 8:15 a.m. EST.

Top Sectors Wednesday: All lead by Materials, Healthcare and Financials.

Weakest Sectors Wednesday: None.

One Month Winners: Technology, Materials, Conglomerates, Utilities and Services.

Three Month Winners: Industrials, Technology, Services, Conglomerates and Financials.

Six Month Winners: Utilities and Conglomerates.

Twelve Month Winners: Utilities, Conglomerates, Healthcare and Services.

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

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

Today After The Close:

Thursday Before The Open:

Earnings This Morning Of Note:

Beat Estimates:

Missed Estimates:

Rags & Mags:

Top Story: U.S. and China may not meet in April to iron out trade deal. (Bloomberg)

5 Things You Need To Know To Start Your Day– (Bloomberg). Chinese economy slows. No deal on Brexit. OPEC monthly report out today.Housing prices drop in U.K.

Beto O’Rourke declares for the presidency. (CNBC)

Facebook (FB) under scrutiny over data deals. (NYT)

Johnson & Johns (JNJ) loses another talc case as jury awards victim $29 million. (CNBC)

General Electric (GE) issues outlook update of $0.50-.60 from $0.75. (CNBC)

CNBC interviews FDA Head Dr. Scott Gottleib on eCigarettes and tobacco.

Telsa (TSLA) to introduce the Model Y later today. (WSJ)

U.K. Theresa May would put latest deal to a 3rd vote if “worthwhile”, a war of attrition? (Bloomberg)

Highlighted Stories may be clicked through to the original story.

Data Points:

We are changing the comments on the various moving averages to a table.

Yesterday saw 1979 stocks rise and 883 fall on the NYSE. NASDAQ saw 1894  rise and 1164 fall.

The QPI10 Day Moving Average of Breadth (10DMA) moved to buy on January 7th at 2549.69 and last Friday the model is back to cash. For a move to cash from buy, the 10DMA needed to have two days in row below -200 which happened with last Thursday’s close.

Courtesy of Quantitative Partners, Inc.

YTD 84% of stocks are higher and 16% are lower. Updated 3/8/19 close with next update on 3/15/19 close.

Courtesy of Phil Erlanger Research, Inc.


The Erlanger Value Lines track the intraday range of resistance, pivot and support. Each day we show where we closed within the range. The change from last week to this week is pretty impressive.

Courtesy of Phil Erlanger Research

The Value Lines may be accessed via Bloomberg. For a free trial if you are a Bloomberg user go to APPS: ERLA <GO>

Economic & Related:

Weekly Jobless Claims are due out at 8:30 a.m. EDT.

January New Home Sales are due out at 10:00 a.m. EDT and are expected to rise to 623,000 from 621,000.

Weekly Natural Gas Inventoriesare due out at 10:30 a.m. EDT.

$16 billion of 30 Treasury Notesto be auctioned at 1:30 p.m. EDT.


President Trump visits with the President of Ireland in a day long event.

President Trump tweets will veto the Anti-Emergency Bill that will pass the Senate today.

Commerce Secretary Wilbur Ross to testify before the House Oversight Committee at 10:00 a.m. EDT.

Conferences & Analyst Meetings:

Analyst Meetings/Notable Conference Call: CUE (update call), RWT (investor day), AIZ (investor day), GDI (investor day),

Sellside Conferences: Barclays Global Healthcare Conference. Wolfe Research Fintech Conference. Citi Annual Latin America Conference. J.P. Morgan Gaming, Lodging, Restaurant and Leisure Management Access Forum.

Industry Conferences:LD Micro 2nd Annual Virtual Conference. South by Southwest Conference.

M&A Activity:

International Flavors & Fragrance (IFF) completes 70% stake in Leagel S.r.l., no terms.

I.D. Systems (IDSY) and Pointer Telocation (PNTR) to merge.

Pre-Market Movers:

Winners: MDB +19%, DOMO +16%, UXIN +14%, PPDF +11%, PNTR +11%, FLNT +6%

Losers: LGCY -28%, TLRD -20%, CLDR -13%, AXGT -11%, GMRE -10%, KINS -8%, NNBR -7%, SMTC -6%, SFS -6%

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