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Jayson Derrick
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About the Author: Jayson Derrick has over 7 years experience in the world of high frequency trading having assumed several positions within the industry. The first as a trader where he traded millions of shares daily, a risk manager overseeing more than $75 million in trader funds, and then the... More
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  • Week Of January 7

    Here is what you need to know to prepare for next week's trading. Courtesy of the trading desk at Prompt Trader, a proprietary trading firm dealing in US equities. Come check out our FREE chat room and take advantage of exclusive member only trading rates. Trade for as low as $1.95 a trade! prompttrader.com

    News, Headlines, Earnings, Trading Ideas:

    -Volatility collapsed 39.1% the largest weekly percentage loss since the index was launched in 1990. Trading the volatility ETN VXX is risky, the inverse volatility ETN XIV can be lucrative. Remember to close any and all positions daily, holding these overnight in this environment can be dangerous. The VIX futures saw record volume past few days.

    Stocks to trade: VXX, VIX, TVIX,

    - Citigroup will seek permission for the bank's first share buyback since 2007 as part of the latest "stress tests" from the Fed - The 19 largest U.S. banks must submit by Monday their plans to return capital to shareholders as part of an annual Fed-supervised exercise that tests whether they have enough capital to keep lending during a severe economic downturn.

    Stocks to trade: BAC, C, JPM, GS, WFC

    Earnings season starts - Alcoa will officially kick off the CQ4 earnings season Tues night (1/8) and Infosys is Thurs (1/10) night, Fiday (1/11) Wells Fargo. but the real volume of results won't start until the week of Mon 1/14.

    Stocks to watch: AA, INFY, WFC

    Tech - CES kicks off in Las Vegas (Jan 7-11). Historically this has been a very big event for tech although increasingly CES is losing some of its relevance. Two of tech's most important companies (MSFT and AAPL) aren't participating (AAPL has never used CES and this is the first year MSFT has decided to skip the event) and no major product launches are planned.

    European CB meetings - both the ECB and BOE will hold meetings Thurs morning 1/10. Neither is expected to adjust policy although there is some chatter around the ECB (will they lower rates from the current 0.75% or bring deposit rates into negative territory?).

    Republican Senate Minority Leader McConnell said the tax issue is over and the focus needs to now turn to spending

    US manufacturing - FLEX's CEO tells the WSJ he can imagine slowly bringing more manufacturing capacity back into the US. The difference in labor costs between Asia and the US is narrowing while American local officials are giving more tax incentives to manufacturers. However, FLEX thinks manufacturing would only return slowly to the US.

    Tax code may be the most progressive its ever been since '79; the upper-income brackets are now facing the heaviest tax burden in >30 years

    Fed asset purchases - Bullard and Plosser both reinforce the message from this week's FOMC minutes and suggest asset purchases could lessen or stop all together before year-end; each hints at a ~7% threshold for QE to stop (vs. ~6.5% for ZIRP); however, Bullard emphasized how investors should watch eco data to determine when policy would change and not the calendar (explaining that the Fed would adjust based on jobs and inflation and not an arbitrary date) - Reuters

    Disclosure: I am long XIV.

    Jan 06 4:50 PM | Link | Comment!
  • Holiday Week Preview

    Here is what you need to know to prepare for next week's trading. Courtesy of the trading desk at Prompt Trader, a proprietary trading firm dealing in US equities. Come check out our FREE chat room and take advantage of exclusive member only trading rates. Trade for as low as $1.95 a trade! www.prompttrader.com/

    This week will be one of if not the slowest trading week of the year as terms of expected volume and news releases.

    Stocks To Watch - Earnings

    Thursday Jan 3 - Earnings before the bell FDO, WOR. Earnings after the close SONC

    Jan 4 - Earnings before the bell FINL, MOST.

    Economic Datas:

    Wednesday, December 26th: US (Case Shiller, Richmond Fed); EuroZone (N/A);Other (Japanese Small Business Confidence, Chinese Industrial Profits YTD, Japanese Vehicle Production, Chinese Leading Index)

    · Thursday, December 27th: US (Initial Jobless Claims, Continuing Claims, Consumer Confidence, New Home Sales); EuroZone (French Producer Prices, French Consumer Confidence, Italian Business Confidence, Italian Economic Sentiment, British Home Prices);Other (Japanese Housing Starts, Japanese Construction Orders, Taiwanese Leading Index, Taiwanese Coincident Index, Hong Kong Trade Balance, Japanese PMI, Japanese Jobless Rate, Japanese CPI, Japanese Retail Trade, Japanese IP)

    · Friday, December 28th: US (Chicago Purchasing Manager, Pending Home Sales); EuroZone (French GDP, French Consumer Spending, Spanish Retail Sales, Italian PPI, Spanish Current Account);Other (N/A)

    News To Follow:

    The treasury will declare it has run out of borrowing capacity. Emergency measures should buy it a few more months so the end of February is the 'real' crucial date. Expect a Moody's downgrade or at the very least a warning of a downgrade.

    Expectations for a 'large' fiscal cliff deal are quickly fading away. Hopefully a 'mini' plan can be pushed through and we can all pretend for just a few more months that everything is perfect and ignore the issues even more.

    Europe - The lack of any substantial news should be a positive for the market (no news is good news). Several countries (Spain, France) will be given more time to achieve fiscal targets.

    China - The momentum continues for Chinese equities, which have gained 9% this month, as the SHCOMP grinded slightly higher (+.27%)

    Dec 24 8:41 AM | Link | Comment!
  • Looking Forward To Next Week's Trading (Dec 17-21)

    Here is what you need to know to prepare for next week's trading. Courtesy of the trading desk at Prompt Trader, a proprietary trading firm dealing in US equities. Come check out our FREE chat room and take advantage of exclusive member only trading rates. Trade for as low as $1.95 a trade! www.prompttrader.com/

    Economic Calendar:

    Monday December 17: Empire Manufacturing, Total Net TIC Flows, Net Long Term Tick Flows

    Tuesday December 18: Current Account Balance, NAHB Housing Market Index

    Wednesday December 19: MBA Mortgage Applications, Housing Starts, Building Permits

    Thursday December 20: 3Q12 GDP, Personal Consumption, GDP Price Index, Core PCE, Initial Jobless Claims, Continuing Claims, Philly Fed, Existing Home Sales, Home Price Index, Leading Indicators

    Friday December 21: Personal Income, Chicago Fed, Personal Spending, PCE Deflator, PCE Core, U of Mich Confidence

    Earnings:

    Tuesday December 18: Before the open - FDS, JEF, SAFM. After the close - ORCL

    Wednesday December 19: Before the open - ATU, FDX, GIS, NAV. After the close - CAN, BBBY, JBL, PAYX

    Thursday December 20: Before the open - AM, CAG, DFS, DRI, KBH, KMX, WGO. After the close - MU, NKE, RECN, RHT, RIMM, TIBX

    Friday December 21: Before the open - WAG

    Market moving news to follow:

    -Boehner/Obama met Thursday night: "The distance between the sides may be widening". http://goo.gl/aLZKz. Update: goo.gl/uRT3Z

    - Fiscal cliff update from S&P - "there are signs that the parties might be making progress outside of the spotlights. Standard & Poor's Ratings Services maintains its base case that calls for Washington to find a way in the few remaining weeks of the year to avoid going over the fiscal cliff. The bond markets seem to agree, as they continue to show no significant movement, up or down, in their spreads. And the S&P 500 has fallen only 9.8 points, or 0.7%, since the election. Of course, all that could change in a heartbeat if lack of progress by Christmas spooks the markets"

    - European summit conclusion from Reuters - no concrete decisions were taken at the summit. Instead, it was more about verbal commitments to push ahead. Reuters http://goo.gl/jusqF

    -China - the country's Central Economic Working Conf will be held this weekend (Dec 15-16) and Beijing is expected to keep the 2013 GDP growth projection unchanged with this year

    (7.5%).

    -Europe's Dec flash PMI composite comes in better (as services strength offsets mild manufacturing shortfall) - the composite PMI came in 47.3 (vs. the St 46.9), manufacturing 46.3 (vs. the St 46.6), and services was 47.8 (vs. the St 47). For France: manufacturing 44.6 (vs. the St 44.9) w/services 46 (vs. St 46). For Germany: manufacturing 46.3 (vs. the St 47.3) and services 52.1 (vs. the St 50). See JPMorgan takeaways on the PMIs:

    http://goo.gl/K2gG5.

    -UK - S&P lowers the country's outlook to negative (this hit earlier in Thurs trading). S&P cited weak growth and a lack of improvement in government finances. FT

    http://goo.gl/bscYf

    -China financial regulators - China's top three financial institutions - the Ministry of Commerce, Ministry of Finance and People's Bank of China - are expected to undergo personnel reshuffles. The new leaders of the three financial institutions are also expected to be selected during the upcoming Central Economic Work Conference (Dec 15 - 16)- Want China

    goo.gl/GL4bw

    Dec 15 2:41 PM | Link | Comment!
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