One Night Fling!

A landslide?! No way! On Wall Street, for the bears – all over again – it was just a one night fling, a short-lived romance, the downward momentum evaporating only a day after first surfacing. Not only that but stocks soared yesterday, the S&P 500 recording its strongest winning day in 2 months, financial and tech stocks leading the market-wide rebound. The NASDAQ recorded its strongest day of gains since November 7th, i.e. a day before the U.S. elections.

The S&P 500 suffered its sharpest day of losses in 6 weeks yesterday after the Senate health care bill was pushed off. Health care legislation is the first big test in so far as Trump’s ability to make true on his election promises, investors now waiting on the edge of their seats to see whether the newly elected president will be able to carry out the rest of his agenda, from tax cuts to infrastructure spending and slashing regulation.

In Summary for the Day: The Dow Jones rose 0.68%, the S&P 500 rallying 0.88% and the NASDAQ soaring 1.43%.

The banking sector (KBE) outperformed yesterday after a number of senior Fed bankers commented that we’re still in a cycle of low rates. Banking stocks also rallied in advance of the stress tests conducted by the Federal Reserve; the sector continued rising during after hour trading, after news broke that the Fed approved the plans of 34 large banks for capital deployment, from stock buybacks, to dividend issues and other capital usages.

Tech stocks (XLE) soared yesterday, after having experienced their worst trading day in 2-weeks the day prior. The sector has led the S&P 500 year-to-date with gains of 9%, though took a step back on Tuesday, leaving some investors to wonder whether prices in the sector have become too expensive. Yesterday, though, the tech sector bounced higher from its 50-period EMA, a level that had proven itself solid technical support on 2 occasions earlier in the month.

One of the stocks which stood out in yesterday’s trading was SPLS, which shot up 8.4% against the backdrop of reports that the company is on the verge of being purchased by a private buyer. KBH surged 5% after releasing better than expected results, revenue numbers outstripping forecasts by 7%. The food company, GIS rose 1.6% after its latest earnings reports showed that cost controls have propelled its earnings higher.

With the Q2 earnings reports of American firms starting to pick up in the second week of July, investors hope that the results will support stock prices. The S&P is trading at a 12-month forward PE of 18, significantly above its long-term average of 15.

About 6.7 billion shares traded hands on U.S. exchanges, beneath the 7.2 billion average over the last 20 trading days.

Thursday: Today’s trading will be affected by the response to initial unemployment claims which will be released at 8:30 N.Y. time. The most important figure on the economic calendar will be the latest Q1 growth reading at the very same hour.

Additionally, WBA, MKC, and NKE will be reporting before the opening bell.

IndexLastDaily change
DJX0.68%21,455Up
SPX0.88%2,441Up
Nasdaq1.43%6,234Up

Today’s Hot Stocks: WBA, MKC, NKE, CAG, C, PIR, JPM, COF

IPOs: ALRN, APRN, BY, DOVA

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday8:30Durable Orders-0.6%Medium
Tuesday10:00Consumer Confidence116.7Medium
Wednesday10:30Crude Oil InventoriesLow
Thursday8:30GDP – Third Estimate1.2%High
Thursday8:30Initial Claims241KHigh
Friday8:30Personal Income0.3%Medium
Friday8:30Personal Spending0.1%Medium
Friday8:30PCE PricesMedium
Friday9:15Chicago PMI57.8Medium
Friday10:00Michigan Sentiment – Final94.7High

 

Earning Calendar

 

SymbolCompanyAM/PMDay
FDSFactSet Research Systems Inc.BMOTuesday
DRIDarden Restaurants, Inc.BMOTuesday
PAYXPaychex, Inc.BMOWednesday
GISGeneral Mills, Inc.BMOWednesday
MONMonsanto CompanyBMOWednesday
WORWorthington Industries, Inc.AMCWednesday
MKCMcCormick & Company, IncorporatedBMOThursday
CAGConagra Brands, Inc.BMOThursday
WBAWalgreens Boots Alliance, Inc.BMOThursday
STZConstellation Brands, Inc.BMOThursday
NKENIKE, Inc.BMOThursday
MUMicron Technology, Inc.AMCThursday

  

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
VRX17.44JUNO 
NTNX20.90PCAR 
AER47NAV 
CIT49.20JBHT 
STT90  
LNTH17.45  
V96.60  
KHC87.14  

  

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

11.5.2017AAOILongClose2.5.2017+0.54%
23.5.2017SCSSLongClose9.5.2017-1.71%
34.5.2017CRZOShortClose5.5.2017+0.30%
48.5.2017WTWLongClose16.5.2017+6.09%
515.5.2017AANLongClose16.5.2017-1.70%
616.5.2017CCLLongClose17.5.2017-0.41%
717.5.2017AMAGShortClose24.5.2017+5.38%
817.5.2017AANLongClose24.5.2017-2.59%
919.5.2017TRCOLongClose23.5.2017-1.45%
1019.5.2017GIMOLongClose26.5.2017+2.05%
111.6.2017BF.BLongClose6.6.2017+0.95%
127.6.2017LULULongClose9.6.2017-2.24%
1314.6.2017SIGShortClose23.6.2017+2.29%
1416.6.2017AABA (YHOO)LongClose26.6.2017+3.14%
1521.6.2017KRShortOpen27.6.2017-2.75%
16
17
18  

 

Today’s Picks – Swing “New-York Strategy

No.1 –    DKS

Company NameDick’s Sporting Goods
Entry Point39.50
Stop Area40.55
1st Target38.30
Swing Target35.87
Avg. Volume2.7M
SectorServices | Sporting Goods Stores
Earning Date
Risk RateNormal
Risk\Reward Ratio3.46:1

 

No.2 – ATUS

Company NameAltice USA
Entry Point33.19
Stop Area32.59
1st Target33.80
Swing Target35.29
Avg. Volume10.31M
SectorTechnology | Telecom Services – Domestic
Earning Date
Risk RateNormal
Risk\Reward Ratio3.50:1