Picks of the Day January 10, 2018.

Market Zips Higher!

The large indexes on Wall Street extended this year’s rally, closing at new highs again on Tuesday – against the backdrop of investor optimism, the Q4 earnings season, also, right around the corner.

Utility, telecom and real estate stocks haven’t made in onto investors’ shopping list. Bank stocks, in turn, rallied, especially after 10-year T-bonds saw an uptick. Health stocks rose, the sector in focus today for the second day in a row with J.P. Morgan holding its key biotech conference.

The financial sector (XLF) ending up 0.8%, after yields on U.S. government 10-year T-bonds rose to a 10-month high on the heels of an announcement from the Bank of Japan that it would be cutting its purchase of U.S. Treasury bonds. The sectors sensitive to interest rates like utilities (XLU) and real estate (IYR) recorded losses of 1%.

The health sector (XLV) rallied 1%, aided by a rise of 1.6% from JNJ, 5% from GILD, and 8.3% from BSX.

The S&P 500 and the NASDAQ recorded their sixth consecutive closing highs. The Dow Jones also ended at a new high, though had cut its winning streak after slight losses on Monday.

Daily Summary: The Dow Jones rose 0.41%, the S&P 500 tacking on 0.13%. The NASDAQ closed slightly up by 0.09%.

Intel (INTC) dragged chip stocks down. The semiconductor sector (SMH) ended off 0.3%. INTC fell 2.5% after Microsoft (MSFT) announced that computers with old Intel chips had slowed significantly after the latest security update patch.

On the S&P 500, 124 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 131 stocks recorded new 52-week highs, 24 falling to new yearly lows.

About 6.77 billion shares changed hands on U.S. exchanges, compared to the 6.3 billion average over the last 20 trading days.

Wednesday: The more January progresses, things seem to be getting better and better for stocks. This was the first time since 1964 that the S&P 500 recorded a 6-day winning streak. For the NASDAQ, the last time the market kicked off with 6 winning days was 1999. The S&P 500 ended up 13% in 1964 and the NASDAQ saw a meteoric rise of 85% since 1999.

The fact that the first 5 trading days of the year were up was already a good sing. When we see gains of 2% or more on the first 5 trading days of the year, the year as a whole, historically, traded up on 15 of 15 occasions. The average gains in this sample size of 15 was 18.6%!

The statistics here teach us that when things are on fire, it could be that they’re just warming up! The fact that we’re seeing such strength going into this year only strengthens the notion that the bull market is still alive and well – and presumably, there are a lot more positives than negatives in the market.

Wednesday brings with it a number of financial reports, including KBH, SVU and PRGS. On the economic front, import and export prices will be released at 8:30 N.Y. time. Wholesale trade numbers will be released at 10:00. Crude inventories will be released at 10:30.

Index

Last

Daily change

DJX25,3860.41%Up
SPX2,7510.13%Up
NASDAQ7,1640.09%Up

Today’s Hot Stocks: JWN, UAL, WDFC, SIG, LEN

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday6:00NFIB Small Business Optimism Index107.9Medium
Tuesday10:00JOLTS6.038 MMedium
Wednesday8:30Import and Export Prices0.4 %Medium
Wednesday10:00Wholesale Trade0.7 %Medium
Wednesday10:30Oil Inventories-7.4 M barrelsLow
Thursday8:30Jobless Claims245 KMedium
Thursday8:30PPI-FD0.2 %Medium
Friday8:30Consumer Price Index0.1 %Medium
Friday8:30Retail Sales0.5 %Medium
Friday10:00Business Inventories0.3 %Medium

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
HELEHelen of Troy LimitedAMMonday
KBKB Financial Group Inc.AMMonday
SIGSignet Jewelers LimitedAMWednesday
LENLennar CorporationAMWednesday
KBHKB HomePMWednesday
PRGSProgress Software CorporationPMWednesday
DALDelta Air Lines, Inc.AMThursday
PNCThe PNC Financial Services Group, Inc.AMFriday
BLKBlackRock, Inc.AMFriday
WFCWells Fargo & CompanyAMFriday
JPMJPMorgan Chase & Co.AMFriday
INFYInfosys LimitedAMFriday

 

  

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
AMTD54.24WTWBZUN
PLAY43.77VOYACREE
 XNETHA
 GBTMU
 NKTRXRAY
 GILD 
 ESRX 

 

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%
511.12.2017NKTRLongClose2.1.2017+4.57%
618.12.2017SYYLongClose19.12.2017+0.14%
73.1.2018VOYALongClose8.1.2017+0.67%
84.1.2018TERLongOpen +1.49%
99.1.2018SCGLongOpen -1.78%

 

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

No.1 – GPS 

Company NameThe Gap, Inc.
Entry Point32.18
Stop Area31.45
1st Target32.70
Swing Target35.24
Avg. Volume5.45M
SectorServices | Apparel Stores
Earning Date
Risk RateNormal
Risk\Reward Ratio4.19:1