Renewed hope about tax cuts, first thing in the morning, sent Wall Street sharply higher. Stocks on Wall Street rallied higher on Tuesday, each of the 3 major indexes recording their best gains in over a week against the backdrop of positive comments made by legislators about tax reform and the debt ceiling, which sent investor optimism soaring.

It could be that half of yesterday’s gains were founded on the speculation that the White House and Republican Party are making significant progress on tax reform legislation. Trading volumes are anemic at this time of the year, meaning that even skimpy buying has a disproportionate effect on stock movement.

House Speaker Paul Ryan told CNN that it would be easier to pass tax reform than health reform – a debacle – because of the consensus in the Republican Party. On another front, Senate Majority Leader, Mitch McConnell, told Congress that there’s “zero chance” it will fail to raise the debt ceiling in September, averting concern that the federal government could shut down or become insolvent.

Yesterday’s gains were sweeping, encompassing almost every market sector. The tech sector (XLK) led the gains, with a surge of 1.5%, recording its first day of gains after 4 consecutive losing days.

Daily Summary: The Dow Jones rose 0.9%. The S&P 500 tacked on 0.99%, the NASDAQ jumping 1.36%.

When push came to shove yesterday, 335 stocks recorded new 52-week highs, 300 falling to new yearly lows, making it the first session in 10 trading days with more stocks recording new yearly highs than lows.

Stocks on Wall Street have been doing beautifully, but some of their magical touch has been lost this month. The S&P 500 is up just about 9% on the year, though has shed 0.7% in August.

One of the stocks that stood out yesterday was Boeing (BA), which rallied 1.7% after the company was awarded an Air Force contract for its next intercontinental ballistic missile. The stock also benefitted from the gains that swept the entire security and defense industry after Pres. Trump addressed the war in Afghanistan. In his speech yesterday, Trump stated that a retreat of American forces from Afghanistan would create a vacuum that terrorists could fill instantaneously. “We cannot repeat in Afghanistan the mistake our leaders made in Iraq,” Trump said. Security and defense stocks soared after Trump’s speech, with the ETF on the sector, the ITA, surging 1.2%.

Macy’s (M) took off 4.56%, recording its best day in almost 7 months, after announcing a company reorganization and workforce cut.

DSW rocketed 17.46% higher after the footwear retailer reported a surprise rise in store chain sales.

About 5.24 billion shares changed hands on U.S. exchanges, beneath the 6.28 billion daily average over the last 20 trading days.

Wednesday: Despite the jump in stocks yesterday on the heels of optimism about tax reform, there are many pitfalls ahead, with there being no prospect for tax cuts to materialize prior to October. Yesterday’s movement attests to players being optimistic to some extent that something’s going to happen. It’s still going to be hard; the will, though, is there. Chances, though, are very low that we’ll see any semblance of tax reform be instituted already this year.

What’s next?! The good news is that the market usually does a better job of creating continuity with positive momentum on its side, as opposed to downside momentum. Strong movement, like yesterday, tends to provide a good helping of support. The apprehension about being left behind is still a powerful market driver, fueling the tendency to buy corrections.

Another important factor is the expectation that something market friendly will come out of Jackson Hole over the weekend. The market isn’t expecting anything specific but inherently, likes to be enamored with central banks, investors rejoicing when bankers wax about cutting their balance sheet and hiking rates.

It goes without saying that bears will have their eyes peeled for the next White House scandal which could pique a selloff. Everybody here knows the bit! Trump will cause another media uproar but the market will very quickly shrug it off and refocus on economic matters.

Technically, the market still faces difficulty ahead, but days like yesterday tend to wipe the slate clean. The trading environment isn’t perfect – but until now, the bulls have dug in, chances being favorable that we can still get a few days more on the upside out of them.

Index Last Daily change
DJX 21,890 0.90% Up
SPX 2,453 0.99% Up
Nasdaq 6,297 1.36% Up

Wednesday’s Hot Stocks: CRM, CREE, LZB, INTU, LOW

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 8:30 Chicago Fed National Activity Index 0.22 Medium
Tuesday 9:00 FHFA House Price Index 0.5 % Medium
Wednesday 10:00 New Home Sales 610K Medium
Wednesday 10:30 Oil Crude Inventories Low
Thursday Jackson Hole Economic Policy Symposium High
Thursday 8:30 Jobless Claims 236 K Medium
Thursday 10:00 Existing Home Sales 5.570 M Medium
Friday Jackson Hole Economic Policy Symposium High
Friday 8:30 Durable Goods Orders -5.7 % Medium
Friday 10:00 Janet Yellen Speaks High

 

Earning Calendar

 

Symbol Company AM/PM Day
WUBA 58.com Inc. AM Monday
MDT Medtronic plc AM Tuesday
TOL Toll Brothers, Inc. AM Tuesday
MOMO Momo Inc. AM Tuesday
COTY Coty Inc. AM Tuesday
CREE Cree, Inc. PM Tuesday
CRM Salesforce.com, inc. PM Tuesday
INTU Intuit Inc. PM Tuesday
LOW Lowe’s Companies, Inc. AM Wednesday
EV Eaton Vance Corp. AM Wednesday
WSM Williams-Sonoma, Inc. PM Wednesday
SQM Sociedad Quimica y Minera de Chile S.A. PM Wednesday
PVH PVH Corp. PM Wednesday
HPQ HP Inc. PM Wednesday
TIF Tiffany & Co. AM Thursday
SJM The J. M. Smucker Company AM Thursday
DLTR Dollar Tree, Inc. AM Thursday
SPLS Staples, Inc. AM Thursday
SIG Signet Jewelers Limited AM Thursday
GME GameStop Corp. PM Thursday
PSTG Pure Storage, Inc. PM Thursday
BRCD Brocade Communications Systems, Inc. PM Thursday
ADSK Autodesk, Inc. PM Thursday
ULTA Ulta Beauty, Inc. PM Thursday
VEEV Veeva Systems Inc. PM Thursday
MRVL Marvell Technology Group Ltd. PM Thursday
SPLK Splunk Inc. PM Thursday
VMW VMware, Inc. PM Thursday
AVGO Broadcom Limited PM Thursday
BIG Big Lots, Inc. AM Friday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
AA 40.36 ATI MOMO
BMY 58 IONS GNC
AEP 73.00 AMBA THC
PYPL 61.30 VRTX BZUN
LUV 52.97 ATVI ELF
  URI  
  DXC  

  

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 14.6.2017 SIG Short Close 23.6.2017 +2.29%
2 16.6.2017 AABA (YHOO) Long Close 26.6.2017 +3.14%
3 21.6.2017 KR Short Close 27.6.2017 -2.75%
4 29.6.2017 DKS Short Close 3.7.2017 +1.04%
5 6.7.2017 HAIN Long Close 18.7.2017 +2.52%
6 6.7.2017 DKS Short Close 13.7.2017 +3.96%
7 10.7.2017 ORCL Long Close 13.7.2017 +1.38%
8 13.7.2017 YUMC Short Close 31.7.2017 +2.12%
9 18.7.2017 LB Short Close 20.7.2017 +1.34%
10 20.7.2017 FIVE Short Close 26.7.2017 +1.97%
11 21.7.2017 HOG Short Close 27.7.2017 +0.39%
12 2.8.2017 AKAM Short Close 3.8.2017 -1.12%
13 3.8.2017 NKE Long Close 8.8.2017 +0.02%
14 4.8.2017 SBUX Short Close 16.8.2017 +2.40%
15 8.8.2017 NTAP Long Close 9.8.2017 -1.17%
16 22.8.2017 ATHM Long Open   +0.83%
17
18    

 

Today’s Picks – Swing “New-York StrategyMorning Optimism Catapults Wall Street Higher!

No.1 –   KORS

Company Name Michael Kors Holdings Limited
Entry Point 42.33
Stop Area 41.48
1st Target 42.80
Swing Target 46.26
Avg. Volume 2.86M
Sector Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.62:1

 

No.2 – AAP

Company Name Advance Auto Parts
Entry Point 94.99
Stop Area 96.80
1st Target 92.80
Swing Target 82.21
Avg. Volume 2.31M
Sector Services | Auto Parts Stores
Earning Date
Risk Rate
Risk\Reward Ratio 7.06:1