Picks of the Day December 6, 2017

Can Santa Save December?!

Wall Street took one step backwards on Tuesday, while the rebound in tech stocks fizzled, the enthusiasm from tax reform tapering. The price of copper fell to its lowest level in 2 months. Usually, the day after a reversal – like Monday’s – we’ll see anywhere from two to 7 days of fitful trading.

The S&P 500 recorded its 3rd straight day of losses, a negative streak not seen since August, which cut the index’s gains year-to-date to 17%. All of the 3 large indexes traded sharply lower towards the end of trading yesterday. One can understand investors. They don’t want to see their gains slip away moments before the year comes to a close. The possibility of closing up shop and here and there buying up a few stocks that have been beaten down certainly seems enticing.

The yield curve of U.S. T-bonds has flattened, the differential between the yields of 5 and 30 year bonds reaching their lowest level in a decade. A flat yield curve on many occasions signals concerns about the economy. A fall in the price of copper, which serves as an indicator of global demand, is another source of concern.

Daily Summary: The Dow Jones fell 0.45%, the S&P 500 shedding 0.37%. The NASDAQ slipped 0.19%.

The tech sector (XLK), which has lost momentum over the last few trading days, rose 0.2% yesterday, making it the only large sector ending in the green. The sector, though, still ended substantially beneath its intraday high.

Investors of late have preferred to sell tech stocks and shift their moneys to bank, communication and transportation stocks. This rotation is aimed at gleaning the benefits of the passage of tax reform, which will slash corporate taxes.

The U.S. House of Representatives voted on Monday to convene in a joint committee with the U.S. Senate in regards to tax reform, which brings Congress one step closer to stamping out and signing their new tax bill.

About 6.9 billion shares changed hands yesterday, slightly above the 6.7 billion average over the last 20 trading days.

Wednesday: The open gap on Tuesday didn’t last long, immediately followed up by selling pressure. The intraday turn for the worse strengthens the feeling about the high we saw Monday on the S&P 500, a high likely to represent the yearly one as well. In my estimate, investors are more vulnerable, more concerned now about what they’re likely to lose, buying pressure posing little sway for them. It seems that investors don’t want to put large sums of money to work at the present moment.

It’s important to remember that seasonally, December is a good period for the stock market. A “Santa Claus Rally,” is a traditional stock market rally in the last 5 days of the outgoing calendar year and the first 2 days of the new trading year. December is usually positive for the stock market, and historically has never been the worst trading month of the year. The seasonality, historically, has certainly been a tailwind.

In summary, the negative gales are likely to die down later in the month. The question is, “Are we going to see a stock buying spree right before Santa’s sled comes to town?”

Index Last Daily change
DJX 24,181 (0.45%) Down
SPX 2,630 (0.37%) Down
Nasdaq 6,762 (0.19%) Down

Wednesday’s Hot Stocks: RH, AVAV, PLAY, AEO, HRB

IPOs: None

Have a great trading day!

Economic Calendar


DAY TIME (EST) Event Forecast Impact
Monday 10:00 Factory Orders -0.4 % Medium
Tuesday 9:45 PMI Services Index 54.7 Medium
Tuesday 10:00 ISM Non-Mfg Index 59.0 Medium
Wednesday 8:15 ADP Employment Report 192,000  Medium
Wednesday 8:30 Productivity and Costs 3.0% Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 Jobless Claims 240 K Medium
Thursday 8:30 William Dudley Speaks   Medium
Friday 8:30 Nonfarm Payrolls 185,000 High
Friday 8:30 Unemployment Rate 4.1 % High
Friday 8:30 Average Hourly Earnings – M/M change 0.3 % High


Earning Calendar


Symbol Company AM/PM Day
HDS HD Supply Holdings, Inc. AM Tuesday
TOL Toll Brothers, Inc. AM Tuesday
VEEV Veeva Systems Inc. PM Tuesday
RH RH PM Tuesday
PLAY Dave & Buster’s Entertainment, Inc. PM Tuesday
AEO American Eagle Outfitters, Inc. AM Wednesday
HRB H&R Block, Inc. AM Wednesday
AVGO Broadcom Limited PM Wednesday
LULU Lululemon Athletica Inc. PM Wednesday
VRNT Verint Systems Inc. PM Wednesday
CIEN Ciena Corporation AM Thursday
MTN Vail Resorts, Inc. AM Thursday
DG Dollar General Corporation AM Thursday
UNFI United Natural Foods, Inc. PM Thursday
FNSR Finisar Corporation PM Thursday



Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
DK 33.74   FSLR BGS
MAC 66     HA


New York Strategy Swing

# Date Stock Long\


Statues Data Close Profit\


1 1.9.2017 VNTV Long Close 14.9.2017 +1.35%
2 12.9.2017 CPB Short Close 15.9.2017 -1.10%
3 18.9.2017 INSM Long Close 22.9.2017 +1.92%
4 25.9.2017 GPS Long Close 2.10.2017 +1.69%
5 27.9.2017 SQM Long Close 29.9.2017 +1.69%
6 2.10.2017 ATI Long Close 6.10.2017 +3.12%
7 2.10.2017 TROX Long Close 18.10.2017 +13.93%
8 3.10.2017 ABT Long Close 11.10.2017 +1.60%
9 9.10.2017 ZGNX Long Close 12.10.2017 +3.26%
10 16.10.2017 INSM Long Close 19.10.2017 -2.82%
11 24.10.2017 CVS Short Close 1.11.2017 +4.77 %
12 30.10.2017 SKX Long Close 31.10.2017 -1.42%
13 31.10.2017 STX Long Close 2.11.2017 -0.15%
14 3.11.2017 AKAM Long Close 8.11.2017 +1.37%
15 10.11.2017 JUNO Long Close 14.11.2017 +1.26%
16 16.11.2017 FLR Long Close 25.11.2017 +2.16%


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

 No.1 –  SPLK

Company Name Splunk 
Entry Point 78.62
Stop Area 76.80
1st Target 79.45
Swing Target 84.88
Avg. Volume 1.9M
Sector Technology | Application Software
Earning Date
Risk Rate High
Risk\Reward Ratio 3.44:1