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.

IndexLast

Daily change

DJX24,8931.03%Up
SPX2,6991.34%Up
NASDAQ7,1441.86%Up

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

Thursday: CSCO, TRIP, TEVA, MAR, NTAP, PRGO, SHOP, ZTS

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday6:00NFIB Small Business Optimism Index105.8Medium
Wednesday8:30Consumer Price Index0.3 %High
Wednesday8:30Retail Sales0.3 %Medium
Wednesday10:00Business Inventories0.2 %Medium
Wednesday10:30Oil Inventories1.9 M barrelsLow
Thursday8:30Jobless Claims229 K   Medium
Thursday8:30Philadelphia Fed Business Outlook Survey21.5     Medium
Thursday8:30PPI0.4 % High
Thursday8:30Empire State Mfg Survey17.5 Medium
Thursday9:15Industrial Production0.2 %Medium
Thursday10:00Housing Market Index72Medium
Friday8:30Housing Starts1.230 MMedium
Friday8:30Import and Export Prices0.6 %Medium
Friday10:00Consumer Sentiment95.5High


 

Earning Calendar

 

SymbolCompanyAM/PMDay
PEPPepsico, Inc.AMTuesday
TRUTransUnionAMTuesday
BIDUBaidu, Inc.PMTuesday
DVADaVita Inc.PMTuesday
FANGDiamondback Energy, Inc.PMTuesday
METMetLife, Inc.PMTuesday
OXYOccidental Petroleum CorporationPMTuesday
BGBunge LimitedAMWednesday
DPSDr Pepper Snapple Group, Inc.AMWednesday
TAPMolson Coors Brewing CompanyAMWednesday
WYNWyndham Worldwide CorporationAMWednesday
AAgilent Technologies, Inc.PMWednesday
ABXBarrick Gold CorporationPMWednesday
AEMAgnico Eagle Mines LimitedPMWednesday
AMATApplied Materials, Inc.PMWednesday
CSCOCisco Systems, Inc.PMWednesday
MARMarriott International, Inc.PMWednesday
MROMarathon Oil CorporationPMWednesday
NTAPNetApp, Inc.PMWednesday
WMBThe Williams Companies, Inc.PMWednesday
PRGOPerrigo Company plcAMThursday
SHOPShopify Inc.AMThursday
TRPTransCanada CorporationAMThursday
WMWaste Management, Inc.AMThursday
YNDXYandex N.V.AMThursday
ZTSZoetis Inc.AMThursday
ANDVAndeavorPMThursday
ANETArista Networks, Inc.PMThursday
CBSCBS CorporationPMThursday
DLRDigital Realty Trust, Inc.PMThursday
LBTYALiberty Global plcPMThursday
CPBCampbell Soup CompanyAMFriday
DEDeere & CompanyAMFriday
KHCThe Kraft Heinz CompanyAMFriday
KOThe Coca-Cola CompanyAMFriday
SJMThe J. M. Smucker CompanyAMFriday
TRGPTarga Resources Corp.AMFriday
XRAYDENTSPLY SIRONA Inc.AMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
SGMO22.85 OKTAPEP
TECK30.79 TWLOLSCC
YNDX39.67 LVS 
CIT53.76 CIT 
WTW76.09 SABR 
GRUB94.89 NKTR 
CMA98.18 SHOP 
WDAY122 WUBA 
LXRX 8YELP 
 

  

New York Strategy Swing

#DateStockLong\

Short

StatuesData 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%
101.2.018SMLongClose2.2.2018-1.06%
1114.2.2018HOLXShort  -1.2%
12