March 1, 2018.

A sell-off at the end of the day led Wall Street sharply down on Wednesday, stock indexes dragged down by ongoing rate hike concerns. The Dow Jones and the S&P 500, in so doing, capped off their worst month since 2016. Furthermore, the S&P 500 cut a streak of 10 winning months, which was its longest winning streak since its 11-month rally between March 1958 and January 1959.

The indexes’ declines yesterday represented the conclusion of a month marked by jumps in volatility and fear that a rise in inflation could lead the Fed to increase its rate hike pace. The weakness at the end of the day was expressive of investors’ skepticism. We’ll always prefer to see strength in the last trading hour.

Energy stocks (XLE) fell against the backdrop of declines in crude which led the energy sector to be the worst-performing sector yesterday on the S&P 500. A breakdown of the 50-period EMA prompted further selling in the afternoon, the computerized algorithmic programs again responding to the technical breakdown that sparked market selling.

Daily Summary: The blue chip Dow fell 1.50%, the S&P 500 dropping 1.11%. The NASDAQ slipped 0.78%.

In summary for the month, the Dow Jones shed 4.3%. In February, the S&P 500 shed 3.9%, the NASDAQ settling for losses of 1.9%.

After a difficult February, stocks are entering the period which usually produces the best 2 months of the year. Historically, February is the third worst performing month for the S&P 500. Stocks are likely to recover in March but the challenge is the continued volatility revolving rising rates and inflationary concerns. The Federal Reserve is expected later in the month on March 21st to hike rates and release a new forecast for both inflation and rate hikes. The latter part of the forecast should signal whether this year’s hikes will come sooner than currently expected.

Historically, stocks have recorded gains in March two-thirds of the time; in April, the batting percentage was even higher, the market recording gains 69% of the time. Since the beginning of the bull market which began in 2009, on average the gains in March stood at a little less than 3%, double the long-term mean gains for March, i.e. 1.5% since 1983.

Traders are eyeing the 2,700 point level on the S&P 500. If we see this level broken down, many investors will lose the confidence they need to buy the correction. In the event the 2,700 point level falls to the bears, things could get messy – the market possibly testing February’s bottom at the 2,535 point level. What we would get then is a W pattern, not a V pattern.

IndexLast

Daily change

DJX25,029(1.50%)Down
SPX2,714(1.11%)Down
NASDAQ7,273(0.78%)Down

 

Thursday’s Hot Stocks: BOX, MNST, DDD, LB, BID, KSS, BBY

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Wednesday8:30GDP2.5 %High
Wednesday9:45Chicago PMI65.0Medium
Wednesday10:00Pending Home Sales Index0.5 %Medium
Wednesday10:30Oil Inventories-1.6 M barrelsLow
Thursday8:30Jobless Claims230 KMedium
Thursday8:30Personal Income and Outlays0.3 %Medium
Thursday9:45PMI Manufacturing Index55.7Medium
Thursday10:00ISM Mfg Index58.6High
Thursday10:00Construction Spending0.3 %Medium
Thursday10:00Jerome Powell SpeaksHigh
Thursday11:00William Dudley SpeaksMedium
Friday10:00Consumer Sentiment99.5High


 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
PANWPalo Alto Networks, Inc.PMMonday
SBACSBA Communications CorporationPMMonday
BRK-ABerkshire Hathaway Inc.PMMonday
CLVSClovis Oncology, Inc.PMMonday
IONSIonis Pharmaceuticals, Inc.AMTuesday
EVEaton Vance Corp.AMTuesday
DISCADiscovery Communications, Inc.AMTuesday
MMacy’s, Inc.AMTuesday
LAMRLamar Advertising Company (REIT)AMTuesday
TOLToll Brothers, Inc.AMTuesday
SERVServiceMaster Global Holdings, Inc.AMTuesday
AZOAutoZone, Inc.AMTuesday
AMTAmerican Tower Corporation (REIT)AMTuesday
PRGOPerrigo Company plcAMTuesday
ALBAlbemarle CorporationPMTuesday
SQSquare, Inc.PMTuesday
EOGEOG Resources, Inc.PMTuesday
WDAYWorkday, Inc.PMTuesday
ESRXExpress Scripts Holding CompanyPMTuesday
PCLNBooking Holdings Inc.PMTuesday
BUFFBlue Buffalo Pet Products, Inc.PMTuesday
JAZZJazz Pharmaceuticals Public Limited CompanyPMTuesday
VEEVVeeva Systems Inc.PMTuesday
DXCMDexCom, Inc.PMTuesday
ACADACADIA Pharmaceuticals Inc.PMTuesday
EVHCEnvision Healthcare CorporationPMTuesday
WTWWeight Watchers International, Inc.PMTuesday
TSROTesaro, Inc.PMTuesday
RRCRange Resources CorporationPMTuesday
ETSYEtsy, Inc.PMTuesday
TDOCTeladoc, Inc.PMTuesday
HZNPHorizon Pharma Public Limited CompanyAMWednesday
DYDycom Industries, Inc.AMWednesday
VRXValeant Pharmaceuticals International, Inc.AMWednesday
LOWLowe’s Companies, Inc.AMWednesday
TJXThe TJX Companies, Inc.AMWednesday
ADIAnalog Devices, Inc.AMWednesday
MYLMylan N.V.PMWednesday
MNSTMonster Beverage CorporationPMWednesday
LBL Brands, Inc.PMWednesday
CRMSalesforce.com, inc.PMWednesday
BLUEbluebird bio, Inc.PMWednesday
BOXBox, Inc.PMWednesday
BIDSotheby’sAMThursday
KSSKohl’s CorporationAMThursday
BBYBest Buy Co., Inc.AMThursday
VMWVMware, Inc.PMThursday
NKTRNektar TherapeuticsPMThursday
GPSThe Gap, Inc.PMThursday
SPLKSplunk Inc.PMThursday
JWNNordstrom, Inc.PMThursday
NTNXNutanix, Inc.PMThursday
SRPTSarepta Therapeutics, Inc.PMThursday
PSTGPure Storage, Inc.PMThursday
FLFoot Locker, Inc.AMFriday
JDJD.com, Inc.AMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
NFX 22.96VEEVACAD
WMB 27.50HLFCELG
GT 28.81TALVRX
DVN 30 ALB
    CRC

 

 

New York Strategy Swing

#DateStockLong\

Short

StatusData CloseProfit\

Loss

16.12.2017SPLKLongClose8.12.2017+1.51%
211.12.2017NKTRLongClose2.1.2017+4.57%
318.12.2017SYYLongClose19.12.2017+0.14%
43.1.2018VOYALongClose8.1.2017+0.67%
54.1.2018TERLongClose10.1.2017+0.45%
69.1.2018SCGLongClose10.1.2017-3.35%
711.1.2018CREELongClose16.1.2018+1.84%
811.1.2018CFLongClose16.1.2018+1.66%
918.1.2018MARKLongClose22.1.2018-0.67%
101.2.2018SMLongClose2.2.2018-1.06%
1114.2.2018HOLXShortClose15.2.2018-2.7%
1226.2.2018FOSLLongOpen +0.11%
1328.2.2018APAShortOpen +0.96%

 

Today’s Picks – Swing “New-York Strategy”

No.1 –   MOMO

Company NameMomo 
Entry Point33.52
Stop Area32.45
1st Target34.30
Swing Target36
Avg. Volume5.79M
SectorTechnology | Internet Software & Services
Earning Date
Risk RateHigh
Risk\Reward Ratio2.32:1

Risk Rates: Normal – Regular size, High –Consider reducing size, Low – Consider increasing size