February 15, 2018.

We have written many times about tracking the changes in the market’s character as a signal for a change in one’s trading approach. The change over the last 2 weeks was the most dramatic seen in years. The surge in volatility created a huge number of trading opportunities. Many market players are facing difficulty in adapting to the change, which causes volatility levels to heighten even more.

One of the interesting things yesterdays was the hot consumer inflation numbers – which justified the rationale behind the latest price correction  – helped create buying rather than selling pressure. We’re back to the frame of mind of being afraid to “miss the boat.”

On a technical level, it’s hard to believe that the rebound over the last 4 trading days can now continue in its last leg of its upward V movement. The S&P 500 is still trading significantly beneath the highs achieved in January, and there’s a lot of resistance now hovering over the market. With that said, the bears were taken entirely off-guard yesterday, running for their lives, covering their shorts in mid-flight. Will the V movement have lasting power? Does it have the power to push the market to where it was in January?!

We have big doubts about that, especially seeing that the V movement would require another large upward surge. The S&P 500 returned yesterday to record gains on the year, but it is still trading beneath its 50-period EMA and needs to rally another 6.3% to hit its all-time high, after having already bounced back 6.7% from the low recorded last Friday.

In our estimation, the positive movement seen over the last few days cannot persist very long, but in the meantime, it’s advisable to stick to the strength as much as possible, when it works in this manner. If the volatility again rears its head, you have to be ready – in the eye of the storm – to sell, despite the market’s strength.

Index Last

Daily change

DJX 24,893 1.03% Up
SPX 2,699 1.34% Up
NASDAQ 7,144 1.86% Up

Daily Summary: The Dow Jones rose 1.03%, the S&P 500 jumping 1.34%. The NASDAQ tacked on 1.86%.


IPOs: None

Have a great trading day!


Economic Calendar


DAY TIME (EST) Event Forecast Impact
Tuesday 6:00 NFIB Small Business Optimism Index 105.8 Medium
Wednesday 8:30 Consumer Price Index 0.3 % High
Wednesday 8:30 Retail Sales 0.3 % Medium
Wednesday 10:00 Business Inventories 0.2 % Medium
Wednesday 10:30 Oil Inventories 1.9 M barrels Low
Thursday 8:30 Jobless Claims 229 K   Medium
Thursday 8:30 Philadelphia Fed Business Outlook Survey 21.5     Medium
Thursday 8:30 PPI 0.4 % High
Thursday 8:30 Empire State Mfg Survey 17.5 Medium
Thursday 9:15 Industrial Production 0.2 % Medium
Thursday 10:00 Housing Market Index 72 Medium
Friday 8:30 Housing Starts 1.230 M Medium
Friday 8:30 Import and Export Prices 0.6 % Medium
Friday 10:00 Consumer Sentiment 95.5 High


Earning Calendar


Symbol Company AM/PM Day
PEP Pepsico, Inc. AM Tuesday
TRU TransUnion AM Tuesday
BIDU Baidu, Inc. PM Tuesday
DVA DaVita Inc. PM Tuesday
FANG Diamondback Energy, Inc. PM Tuesday
MET MetLife, Inc. PM Tuesday
OXY Occidental Petroleum Corporation PM Tuesday
BG Bunge Limited AM Wednesday
DPS Dr Pepper Snapple Group, Inc. AM Wednesday
TAP Molson Coors Brewing Company AM Wednesday
WYN Wyndham Worldwide Corporation AM Wednesday
A Agilent Technologies, Inc. PM Wednesday
ABX Barrick Gold Corporation PM Wednesday
AEM Agnico Eagle Mines Limited PM Wednesday
AMAT Applied Materials, Inc. PM Wednesday
CSCO Cisco Systems, Inc. PM Wednesday
MAR Marriott International, Inc. PM Wednesday
MRO Marathon Oil Corporation PM Wednesday
NTAP NetApp, Inc. PM Wednesday
WMB The Williams Companies, Inc. PM Wednesday
PRGO Perrigo Company plc AM Thursday
SHOP Shopify Inc. AM Thursday
TRP TransCanada Corporation AM Thursday
WM Waste Management, Inc. AM Thursday
YNDX Yandex N.V. AM Thursday
ZTS Zoetis Inc. AM Thursday
ANDV Andeavor PM Thursday
ANET Arista Networks, Inc. PM Thursday
CBS CBS Corporation PM Thursday
DLR Digital Realty Trust, Inc. PM Thursday
LBTYA Liberty Global plc PM Thursday
CPB Campbell Soup Company AM Friday
DE Deere & Company AM Friday
KHC The Kraft Heinz Company AM Friday
KO The Coca-Cola Company AM Friday
SJM The J. M. Smucker Company AM Friday
TRGP Targa Resources Corp. AM Friday


Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
YNDX 39.67   LVS  
CIT 53.76   CIT  
WTW 76.09   SABR  
GRUB 94.89   NKTR  
CMA 98.18   SHOP  
WDAY 122   WUBA  


New York Strategy Swing

# Date Stock Long\


Statues Data Close Profit\


1 6.12.2017 SPLK Long Close 8.12.2017 +1.51%
2 11.12.2017 NKTR Long Close 2.1.2017 +4.57%
3 18.12.2017 SYY Long Close 19.12.2017 +0.14%
4 3.1.2018 VOYA Long Close 8.1.2017 +0.67%
5 4.1.2018 TER Long Close 10.1.2017 +0.45%
6 9.1.2018 SCG Long Close 10.1.2017 -3.35%
7 11.1.2018 CREE Long Close 16.1.2018 +1.84%
8 11.1.2018 CF Long Close 16.1.2018 +1.66%
9 18.1.2018 MARK Long Close 22.1.2018 -0.67%
10 1.2.018 SM Long Close 2.2.2018 -1.06%
11 14.2.2018 HOLX Short     -1.2%