Picks of the Day November 8,2017

Weakness under the Surface

A mere look at yesterday’s market performance chart is likely to camouflage the undercurrent at play. Trading activity continues to take a turn for the worse. Though the NASDAQ 100 (QQQ) ended in positive territory, the index’s depth was very weak, with only 840 winners and 2,100 losing stocks. A number of large stocks again “covered up” the weakness in the rest of the index’s securities. Apple (AAPL) and NVIDIA (NVDA), themselves, succeeded in hiding some of the weakness.

It’s been exactly a year since the U.S. election campaign came to a close, putting Donald Trump in the White House. And it’s been exactly a year since the huge rally, that started on November 8, 2016, catapulted the S&P 500 20% higher! The question that’s gnawing investors now is “How much longer can the rally last?” History has taught that a rally can last longer than anyone thought reasonable.

Strong earnings reports from American firms, along with an improvement in economic figure and hopes for changes in the U.S. tax code helped push stocks higher since President Trump was elected into office. Over the first and second quarters of the year, earnings of S&P 500 firms grew at a clip of 15.5% and 10.8% respectively. The last earnings season has also proven itself strong. As of now, the consensus is that Q3 earnings, year-over-year have risen 6.3%.

Wednesday’s Hot Stocks: WTW, MCHP, SWKS, WB, RCL, COH

IPOs: CBTX, IFRX, MCB

Have a great trading day!

Today’s Picks – Day Trading!

New York Strategy Swing

Today’s Picks – Swing “New-York Strategy

No.1 –    SKX