February 26, 2018.

Over the last 10 years, the market bears had expected higher interest rates to become a catalyst for a deeper market price correction. It’s hard to argue with the logic behind this thinking. The market rose continually, fueled by mountains of cheap capital.

Over the last few weeks, bond yields climbed to levels that we had not seen over the last few years, changing the character of the price correction. Instead of staid, unidirectional price movement, the market having recorded strong closings all January long, over the last 4 trading days we saw intraday reversals with weak closes.

At the same time, the market reversed course on Friday, crushing the bears who had expected this pattern to continue. It was classical computerized algorithmic movement, hoodwinking the bears who were sure that the interest rate concerns would continue creating downward pressure.

This coming week, investors will listen intently to the congressional testimony of the new Fed Chair, Jerome Powell, which will certainly ignite a lively debate about interest rates. The problem for bears will be that the computerized programs have already proven that they can overcome significant economic hurdles like these. The market will only fall if the computerized algorithms consent.

On a technical level, the S&P 500 traded at the upper edge of the trading range at which it has traded of late. There are not an insignificant number of stock charts that are stretched – which doesn’t have too much bearing on reality save the fact that the manner in which things developed on Friday leading up to the closing bell is set to rile up some of the bulls all over again. The market closed strongly for the second consecutive time on Friday, despite the fact that there are certain apprehensions and that investors would usually have preferred to close positions towards the end of the trading week.

The Dow Jones succeeded in soaring 1.4% on Friday, and closing the week up 0.4%. The S&P 500 capped off the volatile trading week up 0.4%.

This coming trading week, even though the earnings season is fizzling out, the spotlight will be on the retail sector with the earning reports of Macy’s (M), Kohl’s (KSS), Nordstrom (JWN), Foot Locker (FL), and J.C. Penney (JCP).

We have to give the bulls the benefit of the doubt, but the market has been working overtime to surprise us and keep us off guard!

Have a great trading week!

IndexLast

Daily change

DJX25,3101.39%Up
SPX2,7471.60%Up
NASDAQ7,3371.77%Up

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday10:00New Home Sales600 KMedium
Tuesday8:30Durable Goods Orders-2.0 %Medium
Tuesday8:30Wholesale Inventories0.3 %Medium
Tuesday9:00S&P Corelogic Case-Shiller HPI0.7 %Medium
Tuesday9:00FHFA House Price Index0.5 %Medium
Tuesday10:00Consumer Confidence126.0High
Tuesday10:00Jerome Powell SpeaksHigh
Wednesday8:30GDP2.5 %High
Wednesday9:45Chicago PMI65.0Medium
Wednesday10:00Pending Home Sales Index0.5 %Medium
Wednesday10:30Oil Inventories-1.6 M barrelsLow
Thursday8:30Jobless Claims230 KMedium
Thursday8:30Personal Income and Outlays0.3 %Medium
Thursday9:45PMI Manufacturing Index55.7Medium
Thursday10:00ISM Mfg Index58.6High
Thursday10:00Construction Spending0.3 %Medium
Thursday10:00Jerome Powell SpeaksHigh
Thursday11:00William Dudley SpeaksMedium
Friday10:00Consumer Sentiment99.5High

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
PANWPalo Alto Networks, Inc.PMMonday
SBACSBA Communications CorporationPMMonday
BRK-ABerkshire Hathaway Inc.PMMonday
CLVSClovis Oncology, Inc.PMMonday
IONSIonis Pharmaceuticals, Inc.AMTuesday
EVEaton Vance Corp.AMTuesday
DISCADiscovery Communications, Inc.AMTuesday
MMacy’s, Inc.AMTuesday
LAMRLamar Advertising Company (REIT)AMTuesday
TOLToll Brothers, Inc.AMTuesday
SERVServiceMaster Global Holdings, Inc.AMTuesday
AZOAutoZone, Inc.AMTuesday
AMTAmerican Tower Corporation (REIT)AMTuesday
PRGOPerrigo Company plcAMTuesday
ALBAlbemarle CorporationPMTuesday
SQSquare, Inc.PMTuesday
EOGEOG Resources, Inc.PMTuesday
WDAYWorkday, Inc.PMTuesday
ESRXExpress Scripts Holding CompanyPMTuesday
PCLNBooking Holdings Inc.PMTuesday
BUFFBlue Buffalo Pet Products, Inc.PMTuesday
JAZZJazz Pharmaceuticals Public Limited CompanyPMTuesday
VEEVVeeva Systems Inc.PMTuesday
DXCMDexCom, Inc.PMTuesday
ACADACADIA Pharmaceuticals Inc.PMTuesday
EVHCEnvision Healthcare CorporationPMTuesday
WTWWeight Watchers International, Inc.PMTuesday
TSROTesaro, Inc.PMTuesday
RRCRange Resources CorporationPMTuesday
ETSYEtsy, Inc.PMTuesday
TDOCTeladoc, Inc.PMTuesday
HZNPHorizon Pharma Public Limited CompanyAMWednesday
DYDycom Industries, Inc.AMWednesday
VRXValeant Pharmaceuticals International, Inc.AMWednesday
LOWLowe’s Companies, Inc.AMWednesday
TJXThe TJX Companies, Inc.AMWednesday
ADIAnalog Devices, Inc.AMWednesday
MYLMylan N.V.PMWednesday
MNSTMonster Beverage CorporationPMWednesday
LBL Brands, Inc.PMWednesday
CRMSalesforce.com, inc.PMWednesday
BLUEbluebird bio, Inc.PMWednesday
BOXBox, Inc.PMWednesday
BIDSotheby’sAMThursday
KSSKohl’s CorporationAMThursday
BBYBest Buy Co., Inc.AMThursday
VMWVMware, Inc.PMThursday
NKTRNektar TherapeuticsPMThursday
GPSThe Gap, Inc.PMThursday
SPLKSplunk Inc.PMThursday
JWNNordstrom, Inc.PMThursday
NTNXNutanix, Inc.PMThursday
SRPTSarepta Therapeutics, Inc.PMThursday
PSTGPure Storage, Inc.PMThursday
FLFoot Locker, Inc.AMFriday
JDJD.com, Inc.AMFriday

 

 

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
AMAG$20.00 MOMOKBR
NYT$25.70 JWNFSLR
TWLO$34.00 SINA 
TPR$51.00 PLNT 
SINA$123.00 TTD 
   VRTX 

 

New York Strategy Swing

#DateStockLong\

Short

StatusData 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%
101.2.2018SMLongClose2.2.2018-1.06%
1114.2.2018HOLXShortClose15.2.2018-2.7%

 

 

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

No.1 –   FOSL

Company NameFossil Group
Entry Point13.90
Stop Area12.94
1st Target14.45
Swing Target18
Avg. Volume3.09M
SectorConsumer Goods | Textile – Apparel Footwear & Accessories
Earning Date
Risk RateMedium
Risk\Reward Ratio4.27:1

 

No.2 – IPG

Company NameThe Interpublic Group of Companies
Entry Point24.30
Stop Area23.78
1st Target24.80
Swing Target26.01
Avg. Volume5.67M
SectorServices | Advertising Agencies
Earning Date
Risk RateLow
Risk\Reward Ratio3.29:1

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