Funds Long on Crude Caught Napping

IndexLastDaily changeR2R1PPS1S2
DJX20,054(-0.18%)Down     
SPX2,2950.07%Up230.06229.65228.98228.57227.90
Nasdaq5,6820.15%Up127.15126.83126.35126.03125.55

Stocks traded sideways around the zero line on Wednesday as investors digested mixed earnings reports. Banking stocks weighed on the Dow Jones. The NASDAQ ended lightly up and at a new high for the second day in a row, tech stocks supporting the gains, with stocks like Facebook (FB) and Apple (AAPL) on the rise. Despite the fact that stocks ended the day almost unchanged, what we saw yesterday exemplified why the sentiment on Wall Street continues to be bullish. The indexes opened the day at a gap down; this, though, is exactly the movement that players buying corrections like – and these are the very same players who pushed the market higher over the rest of the day. The Russell 2000 (IWM) continues to lag behind, falling lightly on the day.

Technically, the NASDAQ succeeded in closing at a new high, the pace of the upward movement slow, though, to an extreme. It could be that there’s a high level of positive sentiment, but the bulls in a market like this like to buy corrections more than they like to buy in when the market’s already on the uptick. The big problem for the market as of now is that the market hasn’t succeeded in breaking out. Technical movement is good, though it hasn’t shown any lasting power. To the good fortune of bulls, the underlying support has been very stubborn, continuing to trap bears who have placed their bets on the market peaking and then taking a turn for the worse.

In summary for the day, the S&P 500 rose 0.07%, the NASDAQ climbing 0.15%. The Russell 2000 (IWM) ended off 0.2%.

Financial stocks, which had been the best performing sector since the elections, were the worst performing yesterday, banking stocks (KBE) ending the day off 1.01%. Goldman Sachs (GS) fell 0.8%, making it the biggest weight on the Dow Jones, which ended the day off 0.18%. J.P. Morgan (JPM) closed down by 0.9%. Banking stocks are sensitive to interest rates – and bond yields fell yesterday to a low not seen in a number of weeks, which points to the confidence in the bond market that we won’t see a rate hike in the next few months.

Crude recovered from its early weakness, despite the fact that the weekly crude reserve report released by the U.S. Department of Energy showed that inventories had soared by 13.8 million barrels, significantly above expectations for an additional 2.5 million barrels. It was the 5th straight week of gains as per the release of the American Petroleum Institute (API), which on Tuesday evening noted a surge in energy reserves. The combination of the revival of shale oil, with doubts about the execution of the OPEC decision to freeze production and a decline in natural gas demand, has played a key role in weighing on crude. It seems that investors are not prepared for crude weakness. The Financial Times reported yesterday that hedge funds made their biggest bet ever on rising oil prices.

On the S&P 500, 19 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 92 stocks recorded new 52-week highs, 51 falling to new yearly lows.

About 6.7 billion shares changed hands on U.S. exchanges, in keeping with the 6.7 billion average over the last 20 trading days.

Thursday: Some of the deals preferred by traders this week included buying into gold and bonds. This trend is likely to continue today, as traders continue to keep their eyes peeled on the political arena in both the U.S. and Europe.

In one of the most jam-packed days of the earning season, traders are anticipating earnings reports from Coca Cola (KO), Viacom (VIAB), NVIDIA (NVDA) and Twitter (TWTR). Airline CEOs are expected to meet with Trump in the White House today.

We can note two factors fueling the interest in and the purchase of precious metals as safer shore investments. Firstly, there’s alarm about the fate of the Euro zone, with impending French elections and renewed concerns about Greek debt back on center stage. Second is the uncertainty revolving Trump – and more specifically, the timing of his fiscal stimulus plan. Lastly, there’s concern that Trump will push forward policy that locks the U.S. into a trade and currency war.

Additional earnings reports to be released before opening include: K, CVS, and CMI. After closing, be primed for the numbers of ATVI, EXPE, P, YELP, and VRSN.

Thursday’s Hot Stocks: CVS, WFM, IMPV, FSLR, FOXA, AMGN

IPOs: None

Have a great trading day!!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday8:30Trade Balance-$45.0BMedium
Tuesday10:00JOLTS – Job OpeningsMedium
Wednesday10:30Crude InventoriesLow
Thursday8:30Initial Claims250KHigh
Thursday10:00Wholesale Inventories1.0%Low
Friday8:30Export Prices ex-ag.High
Friday10:00Mich Sentiment – Prelim97.9High
Friday14:00Treasury BudgetLow

  

Earning Calendar

 

SymbolCompanyAM/PMDay
HASHasbro, Inc.AMMonday
TSNTyson Foods, Inc.AMMonday
CTSHCognizant Technology Solutions CorporationAMMonday
NOVNational Oilwell Varco, Inc.PMMonday
FOXATwenty-First Century Fox, Inc.PMMonday
SNESony CorporationAMTuesday
VMCVulcan Materials CompanyAMTuesday
MOSThe Mosaic CompanyAMTuesday
GRFSGrifols, S.A.AMTuesday
CAHCardinal Health, Inc.AMTuesday
OMCOmnicom Group Inc.AMTuesday
ORLYO’Reilly Automotive, Inc.PMTuesday
AKAMAkamai Technologies, Inc.PMTuesday
MCHPMicrochip Technology IncorporatedPMTuesday
GILDGilead Sciences Inc.PMTuesday
DISThe Walt Disney CompanyPMTuesday
PXDPioneer Natural Resources CompanyPMTuesday
SOThe Southern CompanyAMWednesday
TWXTime Warner Inc.AMWednesday
ALKAlaska Air Group, Inc.AMWednesday
CAJCanon Inc.AMWednesday
HUMHumana Inc.AMWednesday
YUMYum! Brands, Inc.PMWednesday
MYLMylan N.V.PMWednesday
LVLTLevel 3 Communications, Inc.PMWednesday
FISVFiserv, Inc.PMWednesday
TSLATesla Motors, Inc.PMWednesday
PRUPrudential Financial, Inc.PMWednesday
OXYOccidental Petroleum CorporationAMThursday
CVSCVS Health CorporationAMThursday
RAIReynolds American Inc.AMThursday
KOThe Coca-Cola CompanyAMThursday
QQuintiles IMS Holdings, Inc.AMThursday
COTYCoty Inc.AMThursday
CMICummins Inc.AMThursday
KKellogg CompanyAMThursday
TWTRTwitter, Inc.AMThursday
VIABViacom, Inc.AMThursday
CCECoca-Cola European Partners PlcAMThursday
DTEDTE Energy CompanyAMThursday
CERNCerner CorporationPMThursday
EXPEExpedia, Inc.PMThursday
DVADaVita Inc.PMThursday
AAPAdvance Auto Parts, Inc.PMThursday
ATVIActivision Blizzard, Inc.PMThursday
AGUAgrium Inc.PMThursday
NVDANVIDIA CorporationPMThursday
VTRVentas, Inc.AMFriday
XRAYDENTSPLY SIRONA Inc.AMFriday

 

9.2.2017

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
PG88.35FLAKAM
COST168.88WUBA 
LPX21.16BABA 
 MOMO 
 DECK 
 CLVS
 JWN
 KSS

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

129.12.2016JWNShortClose6.1.2017+3.45%
26.1.2017TRGPLongClose9.1.2017+0.20%
39.1.2017NVDALongClose17.1.2017+1.02%
410.1.2017TLRDLongClose10.1.2017-3.27%
513.1.2017LWLongClose26.1.2017+0.09%
631.1.2017ATILongClose7.2.2017+0.09%
71.2.2017AKAOLongOpen +8.87%
82.2.2017DATALongClose6.2.2017+13.09%
97.2.2017GNCShort  +4.05%
10
11
12
13
14      
15 
16 

 

Today’s Picks – Swing “New-York Strategy

No.1 –    PG

Company NameThe Procter & Gamble Company
Entry Point88.35
Stop Area87.80
1st Target88.85
Swing Target90.3
Avg. Volume9.14M
SectorConsumer Goods | Personal Products
Earning Date
Risk RateNormal
Risk\Reward Ratio3.55:1

No.2 – ATI

Company NameAllegheny Technologies
Entry Point20.83
Stop Area19.95
1st Target21.40
Swing Target23.69
Avg. Volume2.92M
SectorIndustrial Goods | Metal Fabrication
Earning Date
Risk Rate
Risk\Reward Ratio3.25:1