February 2, 2018.
After new and extreme highs on market indexes last Friday, price movement changed directions and continued in similar fashion yesterday. Every day over the last week brought with it significant downward movement, something that we hadn’t seen pretty much since the beginning of the year. The computerized algorithms work in both directions – which is causing a certain level of frustration for market players who have gotten used to unidirectional movement.
The volatility is expected to continue as the market digests a large number of events and figures. Amazon (AMZN) surged 6.27% after releasing beautiful numbers after closing, while Google (GOOGL) and Amgen (AMGN) traded off in late trading. Apple (AAPL) also provided the goods as usual – and investors pushed the stock up after closing by 3.44% on the heels of its solid earnings report.
At the same time, it’s not the initial reaction to reports that will be important – or even the news itself – but rather, whether market players still have the desire to pay high prices for stocks which on the charts are becoming more and more stretched. There will be analysts who will claim that stocks are still cheap, but if you’re looking for smart entry points for stocks, you won’t find them at these levels.
The most important event for the market today is the monthly employment report. The market is becoming more and more worried about the quick rise in governmental bond yields. The ETF tracking governmental bonds spanning 7-10 years, the IEF, is traded at its lowest level since 2014, and a strong employment report today will cause even greater concern that inflation is becoming something that deserves our attention. The good news is that inflation is on the uptick. The bad news – for some market players – is the movement in both directions.
Daily Summary: The Dow Jones rose 0.14%, and the S&P 500 shed 0.07%. The NASDAQ ended off 0.35%.
Friday’s Hot Stocks: AAPL, AMZN, GOOGL, AMGN, MAT
Have a great trading day!
|Tuesday||9:00||S&P Corelogic Case-Shiller||0.6 %||Medium|
|Wednesday||8:15||ADP Employment Report||195,000||High|
|Wednesday||10:00||Pending Home Sales Index||0.4 %||Medium|
|Wednesday||10:30||Oil Inventories||-1.1 M barrels||Low|
|Wednesday||14:00||FOMC Meeting Announcement||1.375 %||High|
|Thursday||8:30||Jobless Claims||235 K||Medium|
|Thursday||9:45||PMI Manufacturing Index||55.5||Medium|
|Thursday||10:00||ISM Mfg Index||58.7||High|
|Thursday||10:00||Construction Spending||0.5 %||Medium|
|Friday||8:30||Unemployment Rate||4.1 %||High|
|Friday||8:30||Average Hourly Earnings||0.3%||High|
|Friday||10:00||Factory Orders||1.5 %||Medium|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy”
No.1 – KNX
|Company Name||Knight-Swift Transportation Holdings|
|Sector||Services | Trucking|