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!

Index Last

Daily change

DJX 25,310 1.39% Up
SPX 2,747 1.60% Up
NASDAQ 7,337 1.77% Up


Economic Calendar


DAY TIME (EST) Event Forecast Impact
Monday 10:00 New Home Sales 600 K Medium
Tuesday 8:30 Durable Goods Orders -2.0 % Medium
Tuesday 8:30 Wholesale Inventories 0.3 % Medium
Tuesday 9:00 S&P Corelogic Case-Shiller HPI 0.7 % Medium
Tuesday 9:00 FHFA House Price Index 0.5 % Medium
Tuesday 10:00 Consumer Confidence 126.0 High
Tuesday 10:00 Jerome Powell Speaks High
Wednesday 8:30 GDP 2.5 % High
Wednesday 9:45 Chicago PMI 65.0 Medium
Wednesday 10:00 Pending Home Sales Index 0.5 % Medium
Wednesday 10:30 Oil Inventories -1.6 M barrels Low
Thursday 8:30 Jobless Claims 230 K Medium
Thursday 8:30 Personal Income and Outlays 0.3 % Medium
Thursday 9:45 PMI Manufacturing Index 55.7 Medium
Thursday 10:00 ISM Mfg Index 58.6 High
Thursday 10:00 Construction Spending 0.3 % Medium
Thursday 10:00 Jerome Powell Speaks High
Thursday 11:00 William Dudley Speaks Medium
Friday 10:00 Consumer Sentiment 99.5 High



Earning Calendar


Symbol Company AM/PM Day
PANW Palo Alto Networks, Inc. PM Monday
SBAC SBA Communications Corporation PM Monday
BRK-A Berkshire Hathaway Inc. PM Monday
CLVS Clovis Oncology, Inc. PM Monday
IONS Ionis Pharmaceuticals, Inc. AM Tuesday
EV Eaton Vance Corp. AM Tuesday
DISCA Discovery Communications, Inc. AM Tuesday
M Macy’s, Inc. AM Tuesday
LAMR Lamar Advertising Company (REIT) AM Tuesday
TOL Toll Brothers, Inc. AM Tuesday
SERV ServiceMaster Global Holdings, Inc. AM Tuesday
AZO AutoZone, Inc. AM Tuesday
AMT American Tower Corporation (REIT) AM Tuesday
PRGO Perrigo Company plc AM Tuesday
ALB Albemarle Corporation PM Tuesday
SQ Square, Inc. PM Tuesday
EOG EOG Resources, Inc. PM Tuesday
WDAY Workday, Inc. PM Tuesday
ESRX Express Scripts Holding Company PM Tuesday
PCLN Booking Holdings Inc. PM Tuesday
BUFF Blue Buffalo Pet Products, Inc. PM Tuesday
JAZZ Jazz Pharmaceuticals Public Limited Company PM Tuesday
VEEV Veeva Systems Inc. PM Tuesday
DXCM DexCom, Inc. PM Tuesday
ACAD ACADIA Pharmaceuticals Inc. PM Tuesday
EVHC Envision Healthcare Corporation PM Tuesday
WTW Weight Watchers International, Inc. PM Tuesday
TSRO Tesaro, Inc. PM Tuesday
RRC Range Resources Corporation PM Tuesday
ETSY Etsy, Inc. PM Tuesday
TDOC Teladoc, Inc. PM Tuesday
HZNP Horizon Pharma Public Limited Company AM Wednesday
DY Dycom Industries, Inc. AM Wednesday
VRX Valeant Pharmaceuticals International, Inc. AM Wednesday
LOW Lowe’s Companies, Inc. AM Wednesday
TJX The TJX Companies, Inc. AM Wednesday
ADI Analog Devices, Inc. AM Wednesday
MYL Mylan N.V. PM Wednesday
MNST Monster Beverage Corporation PM Wednesday
LB L Brands, Inc. PM Wednesday
CRM Salesforce.com, inc. PM Wednesday
BLUE bluebird bio, Inc. PM Wednesday
BOX Box, Inc. PM Wednesday
BID Sotheby’s AM Thursday
KSS Kohl’s Corporation AM Thursday
BBY Best Buy Co., Inc. AM Thursday
VMW VMware, Inc. PM Thursday
NKTR Nektar Therapeutics PM Thursday
GPS The Gap, Inc. PM Thursday
SPLK Splunk Inc. PM Thursday
JWN Nordstrom, Inc. PM Thursday
NTNX Nutanix, Inc. PM Thursday
SRPT Sarepta Therapeutics, Inc. PM Thursday
PSTG Pure Storage, Inc. PM Thursday
FL Foot Locker, Inc. AM Friday
JD JD.com, Inc. AM Friday




Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
AMAG $20.00   MOMO KBR
NYT $25.70   JWN FSLR
TWLO $34.00   SINA  
TPR $51.00   PLNT  
SINA $123.00   TTD  


New York Strategy Swing

# Date Stock Long\


Status 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 1.2.2018 SM Long Close 2.2.2018 -1.06%
11 14.2.2018 HOLX Short Close 15.2.2018 -2.7%



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

No.1 –   FOSL

Company Name Fossil Group
Entry Point 13.90
Stop Area 12.94
1st Target 14.45
Swing Target 18
Avg. Volume 3.09M
Sector Consumer Goods | Textile – Apparel Footwear & Accessories
Earning Date
Risk Rate Medium
Risk\Reward Ratio 4.27:1


No.2 – IPG

Company Name The Interpublic Group of Companies
Entry Point 24.30
Stop Area 23.78
1st Target 24.80
Swing Target 26.01
Avg. Volume 5.67M
Sector Services | Advertising Agencies
Earning Date
Risk Rate Low
Risk\Reward Ratio 3.29:1

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