Tuesday #PreMarket Prep Recap

On the show this morning, the hosts touched on Gold future's resistance around the $1,310 level and Joel and Dennis still single out Gold's blatant support level of $1,290. The S&P 500 and Gold futures have been range bound lately and popular miner  Barrick Gold ABX has been under major pressure the past month. 

Focusing on the equity market and the continuation of the less-than-celebration-worthy retail earnings season continues, we take the news from Home Depot HD & Dick's Sporting Goods DKS this morning as confirming the thesis to sell retailers in the face lower sector profits is still in play.

Reviewing the charts for SPDR S&P Retail ETF XRT and the Market Vectors S&P Retail ETF RTH tells us the recent correction in retail continues and heading into the summer JC Penney JCP works to dump expensive and old inventory in an effort to restock their stores with clothing of lesser cost and higher customer desirability.

• Dick's Sporting Goods DKS has been pushing the lower $45 handle in the pre-market on news the company earned $0.50 in Q1 versus $0.52 on $1.44B in revenue against consensus $1.46B and the issuance of a cut to their FY'14 EPS outlook. Joel is avoiding the stock in the premarket. $44.64 is the low this morning but the fade trade isn't from this level, Joel and Dennis think we have further to fall.
• Home Depot HD $75 low print this AM offers a bounce as $74.61 is the next level below $75.  We have a supportive area around $75 and the trade may be to fade the gap from here up to $76.37.  After that level our eyes are on the April 15th low print of $74.61 and we're still looking at a long way to go before we fill the gap to $76.37.
• Lowe's LOW will need to hold the $45.55 resistance level from yesterday's close.  The lower bound ranges over the past 3 or 4 low points is between $44.77 and $44.99, which if breached, will leave us waiting until $44.13 to find a new support region
• Staples SPLS has given confirmation to the thesis of selling the retailers.  Q1 reports shows 18 cents versus 21 cents expected and $5.65B in revenue against $5.62B expected.  The equity hit a premarket low this AM of $11.08.  Traders should be watching the $12.20 level.
• Urban Outfitters URBN $34.03 premarket low.  Heavy trading around $34.50 is just above the May 7th low of $34.47.  We do have some head room until we top out at resistance of $35.56.
• Salesforce.com CRM posts tonight (watch for data to update on Benzinga's Earnings Calendar here), trading up in the pre-market resistance $54.21 Joel likes the set up on the chart this morning. 
• TJ Maxx TJX reported a miss of 3 cents, showing EPS for Q1 coming in at $0.64 in the face of expectations around $0.67.