Indexes Crack Resistance, Breaking New Highs!

The major indexes cracked past one resistance level after the next. The Dow Jones recorded sharp gains on Wednesday, closing above the 23,000 point level for the first time ever, after tech giant, IBM, reported better than expected quarterly results. The Dow Jones, made up of 30 stocks, soared 160.16 points to the 23,157.60 level.

When push comes to shove, this is only a psychological level, but it does raise the question: How much higher can the market go?! All economic figures point to there being more room for gains and we certainly wouldn’t be surprised to see the index cross past the 24,000 point level come year’s end, especially if the tax reform initiative goes through.

IBM beat out analysts’ forecast by 2 cents, after having reported earnings of $3.30 per share for the past quarter on revenues of $19.15 billion. The stock soared 9%, recording its best trading day since 2009. IBM is traded at a modest price valuation and is likely to continue to benefit from its company reorganization. More than that, though, the company pays out a dividend of 4.1%, so it seems that the stock can attract more value investors.

The earnings season has gotten off to a strong start, with 81% of companies hitting their bottom line earnings forecasts, while 73% have outstripped their sales forecasts. As long as we continue to see a stable economy and reasonable earnings reports, the path is paved for the market to break past resistance levels and conquer even higher levels.

Thursday: The earnings season continues today at full force. After closing, yesterday, AA, AXP, EBAY, and UAL, reported, and investors are expected to focus on them today during trading. Before opening, today, PM, TRV and VZ will be reporting.

Traders are also expected to pore over the weekly initial unemployment claims report before opening at 8:30 N.Y. time, and the Leading Indicators Index at 10:00.

Index Last Daily change
DJX 23,158 0.70% Up
SPX 2,561 0.10% Up
Nasdaq 6,624 0.10% Up

 

IPOs: MDB, LXL

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 8:30 Empire State Mfg Survey 20.0 Medium
Tuesday 8:30 Import and Export Prices 0.5 % Medium
Tuesday 9:15 Industrial Production 0.1 % Medium
Tuesday 10:00 Housing Market Index 64 Medium
Wednesday 8:30 Housing Starts 1.170 M Medium
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 Jobless Claims 240K Medium
Thursday 8:30 Philadelphia Fed Business Outlook Survey 20.2  Medium
Thursday 10:00 Leading Indicators 0.1 % Medium
Friday 10:00 Existing Home Sales 5.300 M Medium

  

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
MU 42.07 CREE HLF
PRGO 89.87 IBM VIRT
TSN 72.22 MZOR ESPR
TEVA 14.30   BMRN
HAIN 38.96    
NWL 40.88    

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 1.9.2017 VNTV Long Close 14.9.2017 +1.35%
2 12.9.2017 CPB Short Close 15.9.2017 -1.10%
3 18.9.2017 INSM Long Close 22.9.2017 +1.92%
4 25.9.2017 GPS Long Close 2.10.2017 +1.69%
5 27.9.2017 SQM Long Close 29.9.2017 +1.69%
6 2.10.2017 ATI Long Close 6.10.2017 +3.12%
7 2.10.2017 TROX Long Close 18.10.2017 +13.93%
8 3.10.2017 ABT Long Close 11.10.2017 +1.60%
9 9.10.2017 ZGNX Long Close 12.10.2017 +3.26%
10 16.10.2017 INSM Long Open   -1.87%
11


 

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

No.1 –   ROKU

Company Name Roku
Entry Point 22.50
Stop Area 21.40
1st Target 22.95
Swing Target 29.8
Avg. Volume 12.75M
Sector Services | CATV Systems
Earning Date
Risk Rate Normal
Risk\Reward Ratio 6.64:1

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