Market Oasis

Wall Street indexes achieved historic highs yesterday, enough to push the S&P 500 past the $20 trillion mark for the first time. Investors are continuing to bet on a sweeping tax cut as per President Trump’s campaign promise, a move likely to prop of economic growth by a significant margin.

This past Thursday, Trump promised to release a significant announcement about taxes in the coming weeks, adding fuel to the stock market rally which had halted over the last few weeks on the background of concerns about the potential impact of trade curbs and a lack of clarity regarding other proposed reforms.

The S&P 500 has soared by about 9% since Trump was elected on November 8th on the background of these 3 key topics: tax cuts, limiting regulation, and substantial infrastructure spending. Furthermore, Trump has been holding high profile meetings with the CEOs of major industries, from airline companies to carmakers to Silicon Valley tech companies. Day in and day out, top industry players stream into the White House to meet with Trump. It seems like it’s back to business as usual, and in our view, that’s the reason that investors are willing to pay a little bit more now for stocks.

In summary for the day, the Dow Jones rose 0.7%, the S&P 500 extending last week’s breakup, climbing by another 0.52%. The NASDAQ closed up by a similar amount. The stock of Apple, which constitutes one of the components on all 3 of the major indexes, rose 0.9%, closing at a historic high for the first time since 2015. Analysts at Goldman Sachs raised their price target for Apple on the background of strong expectations for iPhone sales this year.

The financial sector (XLF) led the gains yesterday with a jump of 1.14%, Citigroup (C) soaring 2.3%. The industrial sector (XLI) jumped 1% on the day. These 2 sectors are expected to benefit in large measure from the policies Trump is pushing.

Strong economic figures over the last few weeks supported optimistic results from American firms. S&P 500 firms are on track to record their strongest earnings growth in 9 quarters. What stands behind Trump’s rhetoric are global fundamentals – including those of the U.S. – which find themselves on a continual uptick.

On the S&P 500, 73 stocks rose to new 52-week highs, without a single stock dipping to a new yearly low; on the NASDAQ, 194 stocks recorded new 52-week highs, 19 falling to new yearly lows.

About 6.3 billion shares changed hands on U.S. exchanges, beneath the 6.7 billion average over the last 20 trading days.

Tuesday: Investors are positioning themselves in advance of Fed Chairwoman, Janet Yellen’s speech this morning to the U.S. Senate, along with the inflation and retail chain sales figures expected for Wednesday. These developments, taken as one, are likely to heighten the chances of a Fed interest rate hike in March – something constituting the only headwind for the market’s growing complacency.

Complacency – or market indifference – have continued to grow to new highs, some of this finding expression in the continued plunge in volatility. Volatility on the S&P 500 nosedived yesterday to its lowest level in 10 years, the market having now gone 86 days without losses of 1% or more, and 45 days without closing up or down by 1%, and 40 days without intraday movement larger than 1%. The latest market gains have brought prices to high levels; take, for example, one of the most common price metrics, Price/Book Value, which is now above 3, the highest level seen on the index since 2004.

Besides the speech of Janet Yellen, which will command headlines and maximal attention on the part of traders both today and tomorrow, today’s economic figures will include the NFIB small business optimism survey at 6:00 N.Y. time, and the Producer Price Index at 8:30.

Earning reports are expected today before opening from DISCA, DPS, and GNRC. After closing, be primed for the numbers of AIG, ESRX, and DVN.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,412 0.70% Up          
SPX 2,328 0.52% Up 233.65 233.21 232.63 232.19 231.61
Nasdaq 5,764 0.52% Up 128.57 128.33 128.03 127.79 127.49

Tuesday’s Hot Stocks: DISCA, DPS, GNRC, BKD, NRG, TMUS, TAP

IPOs: None

Have a great trading day!



Economic Calendar


DAY TIME (EST) Event Forecast Impact
Tuesday 8:30 PPI 0.3% High
Wednesday 8:30 CPI 0.3% High
Wednesday 8:30 Empire Manufacturing 7.0 Medium
Wednesday 8:30 Retail Sales 0.1% High
Wednesday 9:15 Industrial Production 0.0% Medium
Wednesday 10:00 Business Inventories 0.4% Medium
Wednesday 10:00 NAHB Housing Market Index 68 Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 Housing Starts 1220K Medium
Thursday 8:30 Initial Claims 245K High
Thursday 8:30 Philadelphia Fed 17.5 Medium
Friday 10:00 Leading Indicators 0.5% Medium



Earning Calendar


Symbol Company AM/PM Day
HCP HCP, Inc. AM Monday
RYAAY Ryanair Holdings plc AM Monday
TEVA Teva Pharmaceutical Industries Limited AM Monday
VNO Vornado Realty Trust PM Monday
NBL Noble Energy, Inc. PM Monday
DISCA Discovery Communications, Inc. AM Tuesday
DPS Dr Pepper Snapple Group, Inc. AM Tuesday
Q Quintiles IMS Holdings, Inc. AM Tuesday
TMUS T-Mobile US, Inc. AM Tuesday
TAP Molson Coors Brewing Company AM Tuesday
INCY Incyte Corporation AM Tuesday
DVN Devon Energy Corporation PM Tuesday
ESRX Express Scripts Holding Company PM Tuesday
A Agilent Technologies, Inc. PM Tuesday
AIG American International Group, Inc. PM Tuesday
PEP Pepsico, Inc. AM Wednesday
ADI Analog Devices, Inc. AM Wednesday
WMB The Williams Companies, Inc. PM Wednesday
LBTYK Liberty Global plc PM Wednesday
LBTYA Liberty Global plc AM Wednesday
AMAT Applied Materials, Inc. AM Wednesday
CBS CBS Corporation AM Wednesday
MAR Marriott International, Inc. PM Wednesday
NTES NetEase, Inc. PM Wednesday
MRO Marathon Oil Corporation PM Wednesday
NTAP NetApp, Inc. PM Wednesday
CSCO Cisco Systems, Inc. PM Wednesday
KHC The Kraft Heinz Company PM Wednesday
MGM MGM Resorts International AM Thursday
AEE Ameren Corporation AM Thursday
WM Waste Management, Inc. AM Thursday
ALXN Alexion Pharmaceuticals, Inc. AM Thursday
ED Consolidated Edison, Inc. PM Thursday
DVA DaVita Inc. PM Thursday
DLR Digital Realty Trust, Inc. PM Thursday
CPB Campbell Soup Company AM Friday
SJM The J. M. Smucker Company AM Friday
MCO Moody’s Corporation AM Friday
DE Deere & Company AM Friday



Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
GS 247.77   GT NVDA
V 86.82   X  
CF 37.17   MBLY  
LB   57.48 CCI  


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   +11.61%
8 2.2.2017 DATA Long Close 6.2.2017 +13.09%
9 7.2.2017 GNC Short Close 9.2.2017 +3.26%
10 9.2.2017 PG Long Close 13.2.2017 -0.63%
11 9.2.2017 ATI Long Open   +3.60%
12 13.2.2017 STX Long Open   +1.60%


Today’s Picks – Swing “New-York Strategy

Company Name BofI Holding
Entry Point 30.60
Stop Area 29.60
1st Target 31.20
Swing Target 35.50
Avg. Volume 946K
Sector Financial | Savings & Loans
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.90:1


No.2 – CXW

Company Name CoreCivic
Entry Point 32
Stop Area 30.90
1st Target 32.60
Swing Target 35.05
Avg. Volume 1.86M
Sector Financial | REIT – Diversified
Earning Date
Risk Rate Normal
Risk\Reward Ratio 2.77:1