The Unending Uptrend!
If you’re a “buy and hold investor” or an index investor, you’re presumably happy with the market’s movement yesterday. Indexes opened at a strong gap down, but very quickly stabilized and then rebounded, despite bad news about weak iPhone 8 orders for Apple (AAPL), grim numbers from EBay (EBAY) and things heating up in Catalonia, Spain. Even Black Monday, 30 years ago on October 19, 1987, when the market recorded its biggest and largest daily decline in history, cast a pall. But, when push came to shove, none of these factors mattered to correction buyers who again capitalized on the trading strategy which has worked the best in the last few years, “Buying the dips!” These very buyers lifted indexes, succeeding in fully closing the gap, the S&P 500 even ending yesterday in positive territory.
In summary for the day, nothing changed! Not only was the long-lasting uptrend unscathed, but market behavior and movement repeated themselves. At the beginning of the day, there was a chance there could be a false rebound after the S&P 500 had broken down to a new intraday low after the initial bounce. Simply put, though, there are too many computerized algorithms and too many adept traders. And both parties just capitalize on this movement and that’s the reason the intraday weakness isn’t translated into losses on the daily chart.
The unending uptrend continues!
Friday: Investors, on this last day of the week, will focus on existing home sales numbers which will be released at 10:00 N.Y. time as well as the news that President Trump prefers Jerome Powell as the next Federal Reserve Chair. Powell would presumably continue Janet Yellen’s course, something the market would seemingly like.
PayPal (PYPL) soared after closing by almost 4% after releasing better than expected numbers. The stock of sports apparel company, Skechers (SKX), skyrocketed over 23% in late trading after the company routed analysts’ top and bottom line forecasts. Celgene (CELG) will place a damper on the biotech sector today, the company’s stock having fallen over 6% after closing in light of the release that it will be ceasing the development of its Crohn’s medication.
Friday’s Hot Stocks: PYPL, CELG, SKX, HON, GE, KSU, SLB
IPOs: SE, REDU, LXL
Have a great trading day!
|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|
|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!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy”
No.1 – JWN
|Sector||Services | Apparel Stores|
Risk Rates: Normal – Regular size, High –Consider reducing size, Low – Consider increasing size