Picks of the Day December 22, 2017.

Ho Ho Ho, Santa Where’s the Dough?!

The 3 large indexes on Wall Street recorded gains on Thursday, led higher by bank and energy stocks as investors placed their bets on the sectors most sensitive to the economy.

The energy sector (XLE) and the financial sector (XLF) were the drivers behind the gains on the 11 S&P 500 sectors. The financial sector has recorded gains of 21% year-to-date, compared to the gains of 20% on the S&P 500. In contrast, the energy sector has lagged behind this year, trading off 4.2%. It could be that Thursday signified a rotation to stocks that are especially sensitive to the economy.

The crude giant, Chevron (CVX), soared 3.3%, having earlier hit a historic high at the $125.35 level, after the brokerage firm, Cowen&Co. raised its price target for the stock by almost 30% to $160!

The optimism about economic growth stems from Congress having passed its $1.5 trillion tax reform earlier in the week. The bills will lower the corporate tax rate to 21% from 35%. Investors are hopeful that the lower corporate tax rate will spur companies to spend more on cash dividends and open-market stock buybacks.

In Summary for the Day: The Dow Jones rose 0.23%, the S&P 500 tacking on 0.2%. The NADSAQ ended slightly up by 0.06%.

About 6.08 billion shares traded hands on U.S. exchanges, beneath the 6.88 billion average over the last 20 trading days.

Friday: Officially, the timeframe for a Santa Claus rally would start today; historically, the rally spans the last 5 trading days of the year and ends on January 3rd, two days into the new trading year.

Some strategists are skeptical about the prospects of a Santa Claus rally developing this year, seeing that the S&P 500 is already up 20% on the year, with a surge of 5% in the last 5 weeks alone. Besides the deals speculators are looking for to profit from the rally, the phenomenon in of itself serves as an indicator for the coming year. The time-honored saying on Wall Street is “If Santa Claus should fail to call, bears will come to Broad and Wall.” Statistically, the phenomenon of a Santa Claus rally has led to average gains of 1.3% over the abovementioned 7 day period.”

More than anything, a Santa Claus rally is likely to serve as an apt indicator of the market’s defences, or the lack thereof! On the last 6 occasions that Santa Claus didn’t show up in the outgoing year, on 3 instances the market ended flat in the incoming year: 1994, 2005, and 2015. Two of the years, though, even put the bears in the driver’s seat: 2000 and 2008. In 2016, the S&P 500 shed 2% during the period in which we would have hoped for a Santa Claus rally – and then continued to fall 10.5% during January, in one of the worst starts ever to a trading year. In the end, the bottom was set on February 11th, and from thereon, the tide turned, 2016, then boasting gains of 9%!

The Economic Diary is now jam-packed leading up to the end of the year. Today will kick off with durable goods orders alongside private income and spending at 8:30 N.Y. time. Later in the day, after trading has begun, investors will await new home sales and the University of Michigan Consumer Confidence Index at 10:00.

IndexLast

Daily change

DJX24,7820.23%Up
SPX2,6850.20%Up
Nasdaq6,9650.06%Up

Friday’s Hot Stocks: NKE, CAMP, CTAS, SGH

IPOs: ICLK (a small issue)

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday10:00Housing Market Index70Medium
Tuesday8:30Housing Starts1.240 MMedium
Wednesday10:00Existing Home Sales5.520 MMedium
Wednesday10:30Oil InventoriesLow
Thursday8:30GDP3.3 %High
Thursday8:30Jobless Claims234 KMedium
Thursday9:00FHFA House Price Index0.4 %Medium
Thursday10:00Leading Indicators0.3%Medium
Friday8:30Durable Goods Orders2.0 %Medium
Friday8:30Personal Income and Outlays0.4 %Medium
Friday10:00New Home Sales650 KMedium
Friday10:00Consumer Sentiment97.0 High
Friday8:30Empire State Mfg Survey-0.1 Medium

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
KBKB Financial Group Inc.AMMonday
DRIDarden Restaurants, Inc.AMTuesday
NAVNavistar International CorporationAMTuesday
WORWorthington Industries, Inc.AMTuesday
CCLCarnival CorporationAMTuesday
MUMicron Technology, Inc.PMTuesday
FDXFedEx CorporationPMTuesday
RHTRed Hat, Inc.PMTuesday
GISGeneral Mills, Inc.AMWednesday
MLHRHerman Miller, Inc.PMWednesday
BBBYBed Bath & Beyond Inc.PMWednesday
PAYXPaychex, Inc.AMThursday
KMXCarMax Inc.AMThursday
CAGConagra Brands, Inc.AMThursday
ACNAccenture plcAMThursday
NKENIKE, Inc.PMThursday
CTASCintas CorporationPMThursday

   

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
SPLK84.88TSCOBBBY
ANF18.44TEVASCG
PWR39.67CVXVTR
SKX38.41RSPPEIX
DVN41.50HESTTD
PCG49.83FANG 
XL34.98APA 
 SLB 

 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

13.11.2017AKAMLongClose8.11.2017+1.37%
210.11.2017JUNOLongClose14.11.2017+1.26%
316.11.2017FLRLongClose25.11.2017+2.16%
46.12.2017SPLKLongClose8.12.2017+1.51%
511.12.2017NKTRLongOpen +2.98%
618.12.2017SYYLongClose19.12.2017+0.14%

 

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

No.1 –   SKX    

Company NameSkechers U.S.A.
Entry Point38.41
Stop Area37.39
1st Target38.90
Swing Target
Avg. Volume3.23M
SectorConsumer Goods | Textile – Apparel Footwear & Accessories
Earning Date
Risk RateNormal
Risk\Reward Ratio

  

 

 

 

 

 

 

 

 

 

 

 

 

 

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