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.
Wednesday’s Hot Stocks: GES, HPE, AXTA, GME, CRM, DE, CPRT
Have a great trading day!
|Tuesday||10:00||Existing Home Sales||5.440 M||Medium|
|Tuesday||18:00||Janet Yellen Speaks||–||Medium|
|Wednesday||8:30||Durable Goods Orders||0.4 %||Medium|
|Wednesday||8:30||Jobless Claims||240 K||Medium|
|Thursday||–||Markets Closed||Thanks Giving Day|
|Friday||9:45||PMI Composite Flash||55.4||Medium|
|BITA||Bitauto Holdings Limited||AM||Monday|
|ZTO||ZTO Express (Cayman) Inc.||PM||Monday|
|PANW||Palo Alto Networks, Inc.||PM||Monday|
|A||Agilent Technologies, Inc.||PM||Monday|
|NOAH||Noah Holdings Limited||PM||Monday|
|BRCD||Brocade Communications Systems, Inc.||PM||Monday|
|URBN||Urban Outfitters, Inc.||PM||Monday|
|CBRL||Cracker Barrel Old Country Store, Inc.||AM||Tuesday|
|SIG||Signet Jewelers Limited||AM||Tuesday|
|DY||Dycom Industries, Inc.||AM||Tuesday|
|EV||Eaton Vance Corp.||AM||Tuesday|
|ADI||Analog Devices, Inc.||AM||Tuesday|
|LOW||Lowe’s Companies, Inc.||AM||Tuesday|
|DLTR||Dollar Tree, Inc.||AM||Tuesday|
|CPB||Campbell Soup Company||AM||Tuesday|
|HRL||Hormel Foods Corporation||AM||Tuesday|
|HPE||Hewlett Packard Enterprise Company||PM||Tuesday|
|DE||Deere & Company||AM||Wednesday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy”
No.1 – TEVA
|Company Name||Teva Pharmaceutical Industries|
|Sector||Healthcare | Drug Manufacturers – Other|
Risk Rates: Normal – Regular size, High –Consider reducing size, Low – Consider increasing size