Magical Stardust Enshrouds Wall Street!

The conditions were ripe for holiday trading yesterday but few expected the movement to be as strong as it was. All of the major indexes jumped to new historic highs, the number of stocks trading at new highs jumped past 500, but was perhaps clearest was the pockets of momentum.

On my trading screen, I had some 25 stocks that had jumped over 10%, and a higher number that jumped 5%. It was almost as if fairies had sprinkled stardust on the markets, momentum sweeping into the holiday season. Stocks like OSTK, FENG, RIOT, and GWPH stood out above all others, but strength could be seen through the entire breadth of trading screens.

Bears are doing the best they can, saying that yesterday’s “exaggerated” movement was an indicator of a reversal trend; bears sense excess movement in a lot of places, but all we can tell them is that any attempt to time the peak in a market like this is very very hard.

Thanksgiving week tends to be positive on Wall Street. On average, since 1945, the S&P 500 has recorded gains of 0.6% on the week.  In effect, precisely in years in which the stock market has already traded up at least 10% on the year come Thanksgiving, the week tends to be stronger, with average gains of almost 0.8%.

 

Other statistical studies found that when the market closed strongly on the Tuesday before Thanksgiving, there’s a smaller change of positive movement in the rest of the week. This is a phenomenon that has been seen of late, the theory behind it being that expectations are too high, causing profit taking.

 

With yesterday’s close, the momentum was very strong, boding well for today. This is a market in which it’s very easy to feel as if you’ve been left behind and those very same frustrated investors will be more than ready to see whatever money they can to work!

 

The most difficult challenge in a market like this is to cling to the momentum. The biggest mistake that traders tend to make is to sell too soon. Even worse, there are traders who are peeved that the missed out on the gains, who are now trying to time when the market’s going to peak. Ride the momentum, ride the wave until the end. You can make enough profit at this stage of the game to be able to cope with the losses to some extent when the market sees a big turn for the worse.

IndexLastDaily change
DJX23,5910.69%Up
SPX2,5990.65%Up
Nasdaq6,8621.06%Up

Wednesday’s Hot Stocks: GES, HPE, AXTA, GME, CRM, DE, CPRT 

IPOs: None

Have a great trading day!

 

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday10:00Existing Home Sales5.440 MMedium
Tuesday18:00Janet Yellen SpeaksMedium
Wednesday8:30Durable Goods Orders0.4 %Medium
Wednesday8:30Jobless Claims240 KMedium
Wednesday10:00Consumer Sentiment26.0 High
Wednesday10:30Oil InventoriesLow
ThursdayMarkets ClosedThanks Giving Day 
Friday9:45PMI Composite Flash55.4Medium
Friday13:00Early Close  


Earning Calendar

 

SymbolCompanyAM/PMDay
BITABitauto Holdings LimitedAMMonday
ZTOZTO Express (Cayman) Inc.PMMonday
PANWPalo Alto Networks, Inc.PMMonday
AAgilent Technologies, Inc.PMMonday
INTUIntuit Inc.PMMonday
NOAHNoah Holdings LimitedPMMonday
BRCDBrocade Communications Systems, Inc.PMMonday
URBNUrban Outfitters, Inc.PMMonday
CBRLCracker Barrel Old Country Store, Inc.AMTuesday
SIGSignet Jewelers LimitedAMTuesday
DYDycom Industries, Inc.AMTuesday
EVEaton Vance Corp.AMTuesday
ADIAnalog Devices, Inc.AMTuesday
LOWLowe’s Companies, Inc.AMTuesday
MDTMedtronic plcAMTuesday
DLTRDollar Tree, Inc.AMTuesday
CPBCampbell Soup CompanyAMTuesday
HRLHormel Foods CorporationAMTuesday
HPEHewlett Packard Enterprise CompanyPMTuesday
CRMSalesforce.com, inc.PMTuesday
HPQHP Inc.PMTuesday
CPRTCopart, Inc.PMTuesday
DEDeere & CompanyAMWednesday

 

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
TWTR22 TRIPSIG
BIVV 50.50RIOTBITA
   OSTK 
   GWPH 
   JEC 

 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

11.9.2017VNTVLongClose14.9.2017+1.35%
212.9.2017CPBShortClose15.9.2017-1.10%
318.9.2017INSMLongClose22.9.2017+1.92%
425.9.2017GPSLongClose2.10.2017+1.69%
527.9.2017SQMLongClose29.9.2017+1.69%
62.10.2017ATILongClose6.10.2017+3.12%
72.10.2017TROXLongClose18.10.2017+13.93%
83.10.2017ABTLongClose11.10.2017+1.60%
99.10.2017ZGNXLongClose12.10.2017+3.26%
1016.10.2017INSMLongClose19.10.2017-2.82%
1124.10.2017CVSShortClose1.11.2017+4.77 %
1230.10.2017SKXLongClose31.10.2017-1.42%
1331.10.2017STXLongClose2.11.2017-0.15%
143.11.2017AKAMLongClose8.11.2017+1.37%
1510.11.2017JUNOLongClose14.11.2017+1.26%
1616.11.2017FLRLong  +2.72%

 

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

No.1 –   TEVA   

Company NameTeva Pharmaceutical Industries
Entry Point12.97
Stop Area14.05
1st Target12.55
Swing Target10.85
Avg. Volume24.79M
SectorHealthcare | Drug Manufacturers – Other
Earning Date
Risk RateNormal
Risk\Reward Ratio1.96:1

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