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.

Index Last Daily change
DJX 0.68% 21,455 Up
SPX 0.88% 2,441 Up
Nasdaq 1.43% 6,234 Up

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

IPOs: ALRN, APRN, BY, DOVA

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 8:30 Durable Orders -0.6% Medium
Tuesday 10:00 Consumer Confidence 116.7 Medium
Wednesday 10:30 Crude Oil Inventories Low
Thursday 8:30 GDP – Third Estimate 1.2% High
Thursday 8:30 Initial Claims 241K High
Friday 8:30 Personal Income 0.3% Medium
Friday 8:30 Personal Spending 0.1% Medium
Friday 8:30 PCE Prices Medium
Friday 9:15 Chicago PMI 57.8 Medium
Friday 10:00 Michigan Sentiment – Final 94.7 High

 

Earning Calendar

 

Symbol Company AM/PM Day
FDS FactSet Research Systems Inc. BMO Tuesday
DRI Darden Restaurants, Inc. BMO Tuesday
PAYX Paychex, Inc. BMO Wednesday
GIS General Mills, Inc. BMO Wednesday
MON Monsanto Company BMO Wednesday
WOR Worthington Industries, Inc. AMC Wednesday
MKC McCormick & Company, Incorporated BMO Thursday
CAG Conagra Brands, Inc. BMO Thursday
WBA Walgreens Boots Alliance, Inc. BMO Thursday
STZ Constellation Brands, Inc. BMO Thursday
NKE NIKE, Inc. BMO Thursday
MU Micron Technology, Inc. AMC Thursday

  

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
VRX 17.44 JUNO  
NTNX 20.90 PCAR  
AER 47 NAV  
CIT 49.20 JBHT  
STT 90    
LNTH 17.45    
V 96.60    
KHC 87.14    

  

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 1.5.2017 AAOI Long Close 2.5.2017 +0.54%
2 3.5.2017 SCSS Long Close 9.5.2017 -1.71%
3 4.5.2017 CRZO Short Close 5.5.2017 +0.30%
4 8.5.2017 WTW Long Close 16.5.2017 +6.09%
5 15.5.2017 AAN Long Close 16.5.2017 -1.70%
6 16.5.2017 CCL Long Close 17.5.2017 -0.41%
7 17.5.2017 AMAG Short Close 24.5.2017 +5.38%
8 17.5.2017 AAN Long Close 24.5.2017 -2.59%
9 19.5.2017 TRCO Long Close 23.5.2017 -1.45%
10 19.5.2017 GIMO Long Close 26.5.2017 +2.05%
11 1.6.2017 BF.B Long Close 6.6.2017 +0.95%
12 7.6.2017 LULU Long Close 9.6.2017 -2.24%
13 14.6.2017 SIG Short Close 23.6.2017 +2.29%
14 16.6.2017 AABA (YHOO) Long Close 26.6.2017 +3.14%
15 21.6.2017 KR Short Open 27.6.2017 -2.75%
16
17
18    

 

Today’s Picks – Swing “New-York Strategy

No.1 –    DKS

Company Name Dick’s Sporting Goods
Entry Point 39.50
Stop Area 40.55
1st Target 38.30
Swing Target 35.87
Avg. Volume 2.7M
Sector Services | Sporting Goods Stores
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.46:1

 

No.2 – ATUS

Company Name Altice USA
Entry Point 33.19
Stop Area 32.59
1st Target 33.80
Swing Target 35.29
Avg. Volume 10.31M
Sector Technology | Telecom Services – Domestic
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.50:1