Morning Quant Ride Feb 12, 2018

Feb 12, 2018

February 12, 2018

Traders’ Corner

US equity futures are pointing to a positive open in NY following a rebound in Asian and European equity markets.  While Japan was closed, the CSI 300 in Shanghai and the Hang Seng China Enterprise index finished up 1.29% and  flat respectively. Australian equities were weak with the ASX 200 closing down 30 bps.  The weakness in Australian equities was driven by energy and telecom with both sectors down over 1%.

 

European equities are up across the board with the Euro Stoxx 50 up 2.9% while country indices like the FTSE 100 in the UK and the DAX in Germany are up 1.23% and 1.57% respectively.   Basic resources, chemicals and healthcare stocks are driving the bounce back.  The rally appears to be driven by good trading volume with current total turnover trending 5% above the 100-day average for the European composite.

In our Friday note, we suggested investors consider:

IWM March 153/138 Risk Reversal

IWM March 146/154/161 Call Butterfly

This morning, we wouldn’t add to these positions, but would encourage investors not to close these positions.  US equity markets should begin to normalize following the VIX shock last week and offers a very attractive entry point for long-term investors. We suggest investors closely follow these A-stocks which underperformed last week and are positioned bounce back today:

QuantShot: Cable One - 15.34% off its 52wkH, reports earnings on 2/28

QuantShot: Dunkin' Brands - 14.43% off its 52wkH

QuantShot: Euronet – 22.13% off its 52wkH

QuantShot: FedEx - 14.32% off its 52wkH, reports earnings on 3/21

First Data - 17.66% off its 52wkH, reports earnings on 2/12

QuantShot: Vishay Intertechnology - 26.00% off its 52wkH

QuantShot: Walmart - 9.65% off its 52wkH, reports earnings on 2/20

Our Top Picks in the News

Click headline for story

Wynn Resorts (WYNN)

Wynn should be bought on weakness from dropped suit, says Jefferies (TheFly)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Consumer Discretionary report

 

See more on our Wynn QuantShot company report from January 10th

Dunkin' Brands (DNKN)

Dunkin' Brands upgraded to Outperform from Market Perform at BMO Capital (TheFly)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Consumer Discretionary report

 

See more on our Dunkin' QuantShot company report from September 21st

Cisco Systems (CSCO)

Cisco upgraded to Buy from Neutral at Nomura Instinet (TheFly)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Large Cap report

 

See more on our Cisco QuantShot company report from February 6th

First Data Corp (FDC)

First Data meets 4Q profit forecasts (CNBC)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Tech report

Campbell Soup Company (CPB)

Time to Buy Campbell Soup (Seeking Alpha)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Consumer Discretionary report

 

See more on our Campbell QuantShot company report from February 9th

Costco (COST)

Does Amazon Prime’s 2-hour Free Food Shipping Make it a Better Deal than Costco? (MarketWatch)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Large Cap report

 

See more on our Costco QuantShot company report from February 5th 

Intel (INTC)

Inside Intel’s Partnership with AMD’s GPU to Launch 8th-Gen Chip (Market Realist)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Info Tech report

 

See more on our Intel QuantShot company report from February 5th   

Micron Technology (MU)

Micron Technology, Inc. Stock Is Too Cheap to Ignore (Investor Place)
Top Conviction Buy in February, please see Quantamize Global Top Picks US Info Tech report

 

See more on our Micron QuantShot company report from January 10th

Tencent (TCEHY)

China's Tencent to invest $474 million in Shanda Games (Reuters)
Top Conviction Buy in February, please see Quantamize Global Top Picks Investable China report

 

See more on our Tencent QuantShot company report from December 18th

Global Indices

Index

Levels

1 Day Return

5 Day Return

MTD

YTD

S&P 500

2619.55

0.00%

-4.97%

-5.03%

0.30%

Russell 2000

1477.84

0.00%

-4.55%

-4.25%

-1.79%

DJ Industrial Average

24190.90

0.00%

-4.94%

-4.80%

0.70%

NASDAQ Composite Index

6874.49

0.00%

-4.52%

-4.85%

2.15%

CBOE Market Volatility Index

26.51

-

-

-

-

Germany DAX (TR)

12287.21

1.48%

-3.18%

-5.59%

-2.53%

France CAC 40

5143.14

1.26%

-3.64%

-4.82%

-1.07%

Japan Nikkei 225

21382.62

0.00%

-7.84%

-5.23%

-4.92%

Hang Seng Index

29459.63

-0.16%

-7.10%

-7.41%

1.35%

Hang Seng China Enterprises

11900.31

-0.01%

-7.45%

-8.71%

6.18%

S&P ASX 200

5820.70

-0.30%

-3.50%

-2.43%

-3.10%

Source: FactSet          

Large Cap Conviction Buy Movers

     
Large Cap A Winners Ticker Sector Industry 1 Day Return  5 Day Return YTD
REGENERON PHARMACEUTICALS REGN Health Care Biotechnology

4.27%

-7.26%

-14.19%

ALIGN TECHNOLOGY INC ALGN Health Care Health Care Equipment & Supplies

3.92%

-14.25%

-0.67%

ALPHABET INC GOOGL Information Technology Internet Software & Services

3.83%

-9.96%

-4.34%

ADVANCED ENERGY INDS INC AEIS Information Technology Semiconductors & Semiconductor Equipment

3.37%

-10.46%

-7.53%

FISERV INC FISV Information Technology IT Services

3.31%

-3.27%

1.46%

Large Cap A Losers Ticker Sector Industry 1 Day Return  5 Day Return YTD
FLEETCOR TECHNOLOGIES INC FLT Information Technology IT Services

-2.41%

-6.22%

1.13%

PRICELINE GROUP INC PCLN Consumer Discretionary Internet & Direct Marketing Retail

-2.27%

-2.85%

3.93%

SEALED AIR CORP SEE Materials Containers & Packaging

-2.25%

-7.79%

-13.55%

SERVICE CORP INTERNATIONAL SCI Consumer Discretionary Diversified Consumer Services

-1.32%

-4.55%

-0.19%

IDEX CORP IEX Industrials Machinery

-1.37%

-6.62%

0.57%

Source: FactSet            

Large Cap Conviction Short Movers

Large Cap F Winners Ticker Sector Industry 1 Day Return 5 Day Return YTD
SAGE THERAPEUTICS INC SAGE Health Care Biotechnology

-8.37%

-11.10%

0.81%

ARMO BIOSCIENCES INC -REDH ARMO Health Care Biotechnology

-7.84%

24.73%

-
RPC INC RES Energy Energy Equipment & Services

-4.59%

-7.77%

-27.42%

ADAMAS PHARMACEUTICALS INC ADMS Health Care Biotechnology

-4.00%

-1.89%

4.10%

BAKER HUGHES A GE CO BHGE Energy Energy Equipment & Services

-3.64%

-11.43%

-13.08%

Large Cap F Losers Ticker Sector Industry 1 Day Return 5 Day Return YTD
MATTEL INC MAT Consumer Discretionary Leisure Products

7.94%

-3.21%

4.03%

RIOT BLOCKCHAIN INC RIOT Health Care Biotechnology

7.79%

22.45%

-47.57%

CNX RESOURCES CORPORATION CNX Energy Oil, Gas & Consumable Fuels

7.52%

-9.79%

-20.03%

M/ACOM TECHNOLOGY SOLUTIONS MTSI Information Technology Semiconductors & Semiconductor Equipment

5.99%

-41.49%

-45.14%

TAUBMAN CENTERS INC TCO Real Estate Equity Real Estate Investment Trusts (REITs)

5.95%

-7.43%

-15.99%

Source: FactSet            

Upcoming Earnings

Company Name Ticker Earnings Date
First Data Corporation Class A FDC 02/12/2018
Louisiana-Pacific Corporation LPX 02/13/2018
Service Corporation International SCI 02/14/2018
Snyder's-Lance, Inc. LNCE 02/14/2018
DaVita Inc. DVA 02/14/2018
Zoetis, Inc. Class A ZTS 02/15/2018
Cisco Systems, Inc. CSCO 02/15/2018
Pilgrim's Pride Corporation PPC 02/15/2018
NetApp, Inc. NTAP 02/15/2018
Marriott International, Inc. Class A MAR 02/15/2018
V.F. Corporation VFC 02/16/2018
SS&C Technologies Holdings, Inc. SSNC 02/16/2018
Ligand Pharmaceuticals Incorporated LGND 02/21/2018
HP Inc. HPQ 02/21/2018
Zebra Technologies Corporation Class A ZBRA 02/22/2018
Toro Company TTC 02/22/2018
Pinnacle Foods, Inc. PF 02/22/2018
PRA Health Sciences, Inc. PRAH 02/22/2018
Leucadia National Corporation LUK 02/26/2018
NuVasive, Inc. NUVA 02/27/2018
Scripps Networks Interactive, Inc. Class A SNI 02/27/2018
United Therapeutics Corporation UTHR 02/27/2018
Priceline Group Inc PCLN 02/28/2018
Carter's, Inc. CRI 02/28/2018
TJX Companies Inc TJX 02/28/2018

Line for QuantShots

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