The Week Ahead

This week we will start to hear first quarter earnings results. Before the New York market open Wednesday we’ll hear from Monsanto (MON). After the bell Wednesday Recycling behemoth and steel manufacturer Schnitzer Steel (SCHN) and retail giant Bed Bath & Beyond will report. I haven’t looked at analyst estimates for any of these names. Market volatility is generally cheap here, as is volatility in many individual names. My bias is to own calls and puts into some earnings announcements this month. A quick view of the charts has me reaching to own calls in BBBY and puts in MON. Generally speaking, you can see how the street will react to earnings by looking at the supply and demand patterns before the announcement. As you can see from the charts below, Monsanto (red) is in a downtrend and looks distributive. Therefore, it will likely trade lower after results. On the flip side, BBBY (blue) is in an uptrend and is being accumulated. It will, therefore, likely trade higher.

Trader Art - MON/BBBY Oil on canvas

There are also four US Treasury auctions this week. Keep these times in mind for volatility in currency markets.

Monday: 13:00 EST US Treasury to auction $8 Billion in 10 year TIPS
Tuesday: 13:00 EST US Treasury to auction $40 Billion in 3 year notes
Wednesday: 13:00 EST US Treasury to auction $21 Billion in 10 year notes
Thursday: 13:00 EST US Treasury to auction $13 Billion in 30 year bonds

I wanted to be a part of it so I became it. And the beat goes on.