Funds Long on Crude Caught Napping

Index Last Daily change R2 R1 PP S1 S2
DJX 20,054 (-0.18%) Down          
SPX 2,295 0.07% Up 230.06 229.65 228.98 228.57 227.90
Nasdaq 5,682 0.15% Up 127.15 126.83 126.35 126.03 125.55

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


DAY TIME (EST) Event Forecast Impact
Tuesday 8:30 Trade Balance -$45.0B Medium
Tuesday 10:00 JOLTS – Job Openings Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 Initial Claims 250K High
Thursday 10:00 Wholesale Inventories 1.0% Low
Friday 8:30 Export Prices ex-ag. High
Friday 10:00 Mich Sentiment – Prelim 97.9 High
Friday 14:00 Treasury Budget Low


Earning Calendar


Symbol Company AM/PM Day
HAS Hasbro, Inc. AM Monday
TSN Tyson Foods, Inc. AM Monday
CTSH Cognizant Technology Solutions Corporation AM Monday
NOV National Oilwell Varco, Inc. PM Monday
FOXA Twenty-First Century Fox, Inc. PM Monday
SNE Sony Corporation AM Tuesday
VMC Vulcan Materials Company AM Tuesday
MOS The Mosaic Company AM Tuesday
GRFS Grifols, S.A. AM Tuesday
CAH Cardinal Health, Inc. AM Tuesday
OMC Omnicom Group Inc. AM Tuesday
ORLY O’Reilly Automotive, Inc. PM Tuesday
AKAM Akamai Technologies, Inc. PM Tuesday
MCHP Microchip Technology Incorporated PM Tuesday
GILD Gilead Sciences Inc. PM Tuesday
DIS The Walt Disney Company PM Tuesday
PXD Pioneer Natural Resources Company PM Tuesday
SO The Southern Company AM Wednesday
TWX Time Warner Inc. AM Wednesday
ALK Alaska Air Group, Inc. AM Wednesday
CAJ Canon Inc. AM Wednesday
HUM Humana Inc. AM Wednesday
YUM Yum! Brands, Inc. PM Wednesday
MYL Mylan N.V. PM Wednesday
LVLT Level 3 Communications, Inc. PM Wednesday
FISV Fiserv, Inc. PM Wednesday
TSLA Tesla Motors, Inc. PM Wednesday
PRU Prudential Financial, Inc. PM Wednesday
OXY Occidental Petroleum Corporation AM Thursday
CVS CVS Health Corporation AM Thursday
RAI Reynolds American Inc. AM Thursday
KO The Coca-Cola Company AM Thursday
Q Quintiles IMS Holdings, Inc. AM Thursday
COTY Coty Inc. AM Thursday
CMI Cummins Inc. AM Thursday
K Kellogg Company AM Thursday
TWTR Twitter, Inc. AM Thursday
VIAB Viacom, Inc. AM Thursday
CCE Coca-Cola European Partners Plc AM Thursday
DTE DTE Energy Company AM Thursday
CERN Cerner Corporation PM Thursday
EXPE Expedia, Inc. PM Thursday
DVA DaVita Inc. PM Thursday
AAP Advance Auto Parts, Inc. PM Thursday
ATVI Activision Blizzard, Inc. PM Thursday
AGU Agrium Inc. PM Thursday
NVDA NVIDIA Corporation PM Thursday
VTR Ventas, Inc. AM Friday



Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
PG 88.35 FL AKAM
COST 168.88 WUBA  
LPX 21.16 BABA  


New York Strategy Swing

# Date Stock Long\


Statues Data Close Profit\


1 29.12.2016 JWN Short Close 6.1.2017 +3.45%
2 6.1.2017 TRGP Long Close 9.1.2017 +0.20%
3 9.1.2017 NVDA Long Close 17.1.2017 +1.02%
4 10.1.2017 TLRD Long Close 10.1.2017 -3.27%
5 13.1.2017 LW Long Close 26.1.2017 +0.09%
6 31.1.2017 ATI Long Close 7.2.2017 +0.09%
7 1.2.2017 AKAO Long Open   +8.87%
8 2.2.2017 DATA Long Close 6.2.2017 +13.09%
9 7.2.2017 GNC Short     +4.05%


Today’s Picks – Swing “New-York Strategy

No.1 –    PG

Company Name The Procter & Gamble Company
Entry Point 88.35
Stop Area 87.80
1st Target 88.85
Swing Target 90.3
Avg. Volume 9.14M
Sector Consumer Goods | Personal Products
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.55:1

No.2 – ATI

Company Name Allegheny Technologies
Entry Point 20.83
Stop Area 19.95
1st Target 21.40
Swing Target 23.69
Avg. Volume 2.92M
Sector Industrial Goods | Metal Fabrication
Earning Date
Risk Rate
Risk\Reward Ratio 3.25:1