Netflix Provides the Goods!

The pattern continued yesterday too! The indexes recorded new historic highs, but the gains were paltry – and volatility was minimal. On the one hand the upward trend hasn’t tapered, but on the other, it hasn’t produced euphoria. There’s an ever-present bullish tendency in our market but it’s more the result of fear of missing the next spurt of gains as opposed to investors greedily coveting more profits.

The largest current ripping through the market yesterday was the sharp reversal in biotech stocks after President Trump renewed concerns about limiting prices, as well as strong movement in some large Chinese companies’ stocks. Stocks like YY, BIDU, BITA, and YRD all rallied to new highs.

Apple (AAPL) did a good job as a steadying influence for the NASDAQ, but FAANG stocks were mixed. In yesterday’s trading, most of the attention focused on NFLX in advance of the release of its Q3 earnings report. The company reported after closing. NFLX ended regular trading up 1.6%, rising another 1.3% in late trading on the heels of its earnings release, which as usual, hit early forecasts. The numbers from NFLX will be a good test for the mood on the market today. There’s potential for a “sell the news” response in the stock today, NFLX having already soared 65% year-to-date. Last week, the stock benefitted from a wave of upgrades, no fewer than 10 leading Wall Street analysts boosting their rating. On the flip side, when the trend on Wall Street is so strong, correction buyers will wait in ambush, ready to pounce the moment the stock falls even marginally.

Not much changed yesterday. It was the same movement we had seen for weeks, with a little rotation outside of small-caps and into financial stocks and other sectors. There’s no reason to expect the uptrend to encounter a serious obstacle at any point in the near future; the earnings season is historically good for the stock market.

Tuesday: The companies reporting today before opening include: HOG, JNJ, MS, GS, CMA, PGR, CSX. After closing, be primed for CREE and IBM, as they release their latest numbers. PGR will garner a lot of interest among investors, it being the first large insurance company to report after the wave of hurricanes that struck the U.S. over the last few months. Insurance companies are expected to record a sharp drop in earnings as a result. Later in the week, the insurance company, Travelers, will be reporting.

Today’s Economic Diary will include import and export prices at 8:30 N.Y. time, industrial output at 9:15 and the National Association of Home Builders (NAHB) housing price index at 10:00.

Index Last Daily change
DJX 22,957 0.37% Up
SPX 2,558 0.18% Up
Nasdaq 6,624 0.28% Up

Tuesday’s Hot Stocks: NFLX, HOG, PGR, CSX, BMI, SONC

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 8:30 Empire State Mfg Survey 20.0 Medium
Tuesday 8:30 Import and Export Prices 0.5 % Medium
Tuesday 9:15 Industrial Production 0.1 % Medium
Tuesday 10:00 Housing Market Index 64 Medium
Wednesday 8:30 Housing Starts 1.170 M Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 Jobless Claims 240K Medium
Thursday 8:30 Philadelphia Fed Business Outlook Survey 20.2 Medium
Thursday 10:00 Leading Indicators 0.1 % Medium
Friday 10:00 Existing Home Sales 5.300 M Medium
 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
ZTS 65.83 BIDU PCG
BLUE 143.50 BITA TRGP
ATI 25.51 JP PSX
HLF 79.64 SOHU JWN
  MOMO  

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

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 Open   +14.38%
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 Open   -0.42%
11
12
13

  

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

 No.1 –  ABEO

Company Name Abeona Therapeutics
Entry Point 17.30
Stop Area 15.70
1st Target 18.20
Swing Target 22.75
Avg. Volume 1.05M
Sector Healthcare | Biotechnology
Earning Date 14 Nov
Risk Rate Normal
Risk\Reward Ratio 3.41:1

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