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.

Index Last

Daily change

DJX 24,782 0.23% Up
SPX 2,685 0.20% Up
Nasdaq 6,965 0.06% Up

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

IPOs: ICLK (a small issue)

Have a great trading day!


Economic Calendar


DAY TIME (EST) Event Forecast Impact
Monday 10:00 Housing Market Index 70 Medium
Tuesday 8:30 Housing Starts 1.240 M Medium
Wednesday 10:00 Existing Home Sales 5.520 M Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 GDP 3.3 % High
Thursday 8:30 Jobless Claims 234 K Medium
Thursday 9:00 FHFA House Price Index 0.4 % Medium
Thursday 10:00 Leading Indicators 0.3% Medium
Friday 8:30 Durable Goods Orders 2.0 % Medium
Friday 8:30 Personal Income and Outlays 0.4 % Medium
Friday 10:00 New Home Sales 650 K Medium
Friday 10:00 Consumer Sentiment 97.0 High
Friday 8:30 Empire State Mfg Survey -0.1  Medium



Earning Calendar


Symbol Company AM/PM Day
KB KB Financial Group Inc. AM Monday
DRI Darden Restaurants, Inc. AM Tuesday
NAV Navistar International Corporation AM Tuesday
WOR Worthington Industries, Inc. AM Tuesday
CCL Carnival Corporation AM Tuesday
MU Micron Technology, Inc. PM Tuesday
FDX FedEx Corporation PM Tuesday
RHT Red Hat, Inc. PM Tuesday
GIS General Mills, Inc. AM Wednesday
MLHR Herman Miller, Inc. PM Wednesday
BBBY Bed Bath & Beyond Inc. PM Wednesday
PAYX Paychex, Inc. AM Thursday
KMX CarMax Inc. AM Thursday
CAG Conagra Brands, Inc. AM Thursday
ACN Accenture plc AM Thursday
NKE NIKE, Inc. PM Thursday
CTAS Cintas Corporation PM Thursday


Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
PCG 49.83 FANG  
XL 34.98 APA  



New York Strategy Swing

# Date Stock Long\


Statues Data Close Profit\


1 3.11.2017 AKAM Long Close 8.11.2017 +1.37%
2 10.11.2017 JUNO Long Close 14.11.2017 +1.26%
3 16.11.2017 FLR Long Close 25.11.2017 +2.16%
4 6.12.2017 SPLK Long Close 8.12.2017 +1.51%
5 11.12.2017 NKTR Long Open   +2.98%
6 18.12.2017 SYY Long Close 19.12.2017 +0.14%


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

No.1 –   SKX    

Company Name Skechers U.S.A.
Entry Point 38.41
Stop Area 37.39
1st Target 38.90
Swing Target
Avg. Volume 3.23M
Sector Consumer Goods | Textile – Apparel Footwear & Accessories
Earning Date
Risk Rate Normal
Risk\Reward Ratio















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