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.

IndexLastDaily changeR2R1PPS1S2
DJX20,4120.70%Up     
SPX2,3280.52%Up233.65233.21232.63232.19231.61
Nasdaq5,7640.52%Up128.57128.33128.03127.79127.49

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

IPOs: None

Have a great trading day!

 

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday8:30PPI0.3%High
Wednesday8:30CPI0.3%High
Wednesday8:30Empire Manufacturing7.0Medium
Wednesday8:30Retail Sales0.1%High
Wednesday9:15Industrial Production0.0%Medium
Wednesday10:00Business Inventories0.4%Medium
Wednesday10:00NAHB Housing Market Index68Medium
Wednesday10:30Crude InventoriesLow
Thursday8:30Housing Starts1220KMedium
Thursday8:30Initial Claims245KHigh
Thursday8:30Philadelphia Fed17.5Medium
Friday10:00Leading Indicators0.5%Medium

  

 

Earning Calendar

 

SymbolCompanyAM/PMDay
HCPHCP, Inc.AMMonday
RYAAYRyanair Holdings plcAMMonday
TEVATeva Pharmaceutical Industries LimitedAMMonday
VNOVornado Realty TrustPMMonday
NBLNoble Energy, Inc.PMMonday
DISCADiscovery Communications, Inc.AMTuesday
DPSDr Pepper Snapple Group, Inc.AMTuesday
QQuintiles IMS Holdings, Inc.AMTuesday
TMUST-Mobile US, Inc.AMTuesday
TAPMolson Coors Brewing CompanyAMTuesday
INCYIncyte CorporationAMTuesday
DVNDevon Energy CorporationPMTuesday
ESRXExpress Scripts Holding CompanyPMTuesday
AAgilent Technologies, Inc.PMTuesday
AIGAmerican International Group, Inc.PMTuesday
PEPPepsico, Inc.AMWednesday
ADIAnalog Devices, Inc.AMWednesday
WMBThe Williams Companies, Inc.PMWednesday
LBTYKLiberty Global plcPMWednesday
LBTYALiberty Global plcAMWednesday
AMATApplied Materials, Inc.AMWednesday
CBSCBS CorporationAMWednesday
MARMarriott International, Inc.PMWednesday
NTESNetEase, Inc.PMWednesday
MROMarathon Oil CorporationPMWednesday
NTAPNetApp, Inc.PMWednesday
CSCOCisco Systems, Inc.PMWednesday
KHCThe Kraft Heinz CompanyPMWednesday
MGMMGM Resorts InternationalAMThursday
AEEAmeren CorporationAMThursday
WMWaste Management, Inc.AMThursday
ALXNAlexion Pharmaceuticals, Inc.AMThursday
EDConsolidated Edison, Inc.PMThursday
DVADaVita Inc.PMThursday
DLRDigital Realty Trust, Inc.PMThursday
CPBCampbell Soup CompanyAMFriday
SJMThe J. M. Smucker CompanyAMFriday
MCOMoody’s CorporationAMFriday
DEDeere & CompanyAMFriday

 

14.2.2017

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
CAT99.5 AMTNBIX
GS247.77 GTNVDA
AMGN168.35 TEVAEXPE
V86.82 X 
CF37.17 MBLY 
LB 57.48CCI 
   TWLO 

 

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 +11.61%
82.2.2017DATALongClose6.2.2017+13.09%
97.2.2017GNCShortClose9.2.2017+3.26%
109.2.2017PGLongClose13.2.2017-0.63%
119.2.2017ATILongOpen +3.60%
1213.2.2017STXLongOpen +1.60%
13      
14      
15      
16      

 

Today’s Picks – Swing “New-York Strategy

Company NameBofI Holding
Entry Point30.60
Stop Area29.60
1st Target31.20
Swing Target35.50
Avg. Volume946K
SectorFinancial | Savings & Loans
Earning Date
Risk RateNormal
Risk\Reward Ratio4.90:1

 

No.2 – CXW

Company NameCoreCivic
Entry Point32
Stop Area30.90
1st Target32.60
Swing Target35.05
Avg. Volume1.86M
SectorFinancial | REIT – Diversified
Earning Date
Risk RateNormal
Risk\Reward Ratio2.77:1