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.

IndexLastDaily change
DJX23,1580.70%Up
SPX2,5610.10%Up
Nasdaq6,6240.10%Up

 

IPOs: MDB, LXL

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday8:30Empire State Mfg Survey20.0Medium
Tuesday8:30Import and Export Prices0.5 %Medium
Tuesday9:15Industrial Production0.1 %Medium
Tuesday10:00Housing Market Index64Medium
Wednesday8:30Housing Starts1.170 MMedium
Wednesday10:30Oil InventoriesLow
Thursday8:30Jobless Claims240KMedium
Thursday8:30Philadelphia Fed Business Outlook Survey20.2 Medium
Thursday10:00Leading Indicators0.1 %Medium
Friday10:00Existing Home Sales5.300 MMedium

  

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
MU42.07CREEHLF
PRGO89.87IBMVIRT
TSN72.22MZORESPR
TEVA14.30 BMRN
HAIN38.96  
NWL40.88  

 

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%
1016.10.2017INSMLongOpen -1.87%
11


 

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

No.1 –   ROKU

Company NameRoku
Entry Point22.50
Stop Area21.40
1st Target22.95
Swing Target29.8
Avg. Volume12.75M
SectorServices | CATV Systems
Earning Date
Risk RateNormal
Risk\Reward Ratio6.64:1

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