Performance Anxiety

If you’re ready to erase the first and last 10 minutes of yesterday’s trading, you’ll see that the S&P 500 barely moved. In effect, the market’s flatness yesterday could have been a new high in its own! Fortunately, there was no lack of movement in individual stocks and the automatic software programs that went into action in the last 10 trading minutes yesterday, sent the S&P 500 to another historic high.

The technical movement points to there still being upside but many stocks need a rest, too. Also, Apple’s big event provided a catalyst to “sell the news” in the stock along with that of its different suppliers.

There are differences of opinion as to whether the new Apple products will encounter fanfare or disappointment among its client base. There’s no question that the announcement was well priced into Apple’s stock and that the selling following the product launch hints at the market not being surprised by its product suite. It’s very possible that correction buyers are already preparing to pounce and buy Apple in the event it falls to support level – and I don’t expect them to be overly patient! The closest support level is $155, the point where the bottom of the latest trading range is situated, which also coincides with the 50 period EMA.

Investors’ concerns about the company revolve around the price of its iPhone X being too high; it also hits shelves in November, later than anticipated. When considering that the stock rallied almost 40% year-to-date, some investors believe that the time has come to translate these gains into cash.

The weakness in Apple could certainly affect index values because of the stock’s sheer weight, but there are other stocks in need of rest. The big question for investors is how to cope with a market that has momentum but that finds itself at overbought levels.

The first important thing to remember is that a market like our’s can’t just shatter in one day’s time. The bears like to believe that the market will suddenly understand that the strength is unfounded, with the market imploding, but things simply don’t work that way! It takes time for the market to peak and usually the market tests this peak at least one additional time.

The bears had hoped that September’s time-tested negative seasonality would give them a tailwind, but in the meantime, that’s been yet to happen – and apparently, it led to errant positions, which only helped to accelerate the latest strength.

One of the big factors helping the market as of now is that very strength which caught a lot of market players off-guard, forcing them to buy in to keep pace. The third quarter is very quickly nearing its end and performance anxiety is pushing fund managers to seek the best course to not be caught behind. Money lying around in cash hurts all the more when the market’s on the uptick and refuses to correct.

Some market players will be enticed to anticipate a reversal after the latest market rally, but tense markets have a tendency to become tenser. Don’t look to jump into the path of an oncoming train, even if you think it will derail.

On the S&P 500, 31 stocks recorded 52-week highs and one stock fell to a new yearly low; on the NASDAQ, 103 stocks recorded new yearly highs, 17 falling to new yearly lows.

About 6.2 billion shares traded hands on U.S. exchanges, above the 5.8 billion average over the last 20 trading days.

Thursday: The Consumer Price Index had been expected to rise only moderately in August, in part because of the light rise in prices at fill-up stations. At the same time, economists expect September’s inflation figures to be a lot hotter in light of the surge in gas prices after Hurricane Harvey. The impact of Harvey and Irma should be felt in weekly unemployment figures which will be released at 8:30 N.Y. time; at the same time, the August Consumer Price Index will be released, the consensus being a rise of 0.3%, pushing the annualized inflation clip to 1.8%.

Index Last Daily change
DJX 22,158 0.18% Up
SPX 2,498 0.08% Up
Nasdaq 6,460 0.09% Up

Today’s Hot Stocks: EFX, UNFI, THC

IPOs: None

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 6:00 NFIB Small Business Optimism Index 104.8 Medium
Tuesday 10:00 JOLTS 6.010 M Medium
Wednesday 8:30 PPI 0.3 % High
Wednesday 10:30 Oil Inventories Low
Thursday 8:30 Consumer Price Index 0.4 % High
Thursday 8:30 Jobless Claims 300 K Medium
Friday 8:30 Retail Sales 0.1 % Medium
Friday 8:30 Empire State Mfg Survey 19.0 Medium
Friday 9:15 Industrial Production 0.1 % Medium
Friday 10:00 Business Inventories 0.2 % Medium
Friday 10:00 Consumer Sentiment 96.0 High

 

 

Earning Calendar

 

Symbol Company AM/PM Day
UNFI United Natural Foods, Inc. PM Wednesday
ORCL Oracle Corporation PM Thursday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
FIT 6.8 JD EFX
BTU 31 JUNO MDXG
AN 46.76 XEC INSM
  APA TRU
  DVN  
  BBY  

  

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 2.8.2017 AKAM Short Close 3.8.2017 -1.12%
2 3.8.2017 NKE Long Close 8.8.2017 +0.02%
3 4.8.2017 SBUX Short Close 16.8.2017 +2.40%
4 8.8.2017 NTAP Long Close 9.8.2017 -1.17%
5 22.8.2017 ATHM Long Close 23.8.2017 +0.16%
6 23.8.2017 AAP Short Close 26.8.2017 +0.98%
7 28.8.2017 CREE Short Close 30.8.2017 -0.86%
8 30.8.2017 TRIP Long Close 11.9.2017 +3.88%
9 1.9.2017 VNTV Long Open +1.53%
10 12.9.2017 CPB Short Open   +0.02%
11  
12
13  
14
15
16  
17
18            

 

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

 No.1 –   SAVE

Company Name Spirit Airlines
Entry Point 34.40
Stop Area 35.05
1st Target 33.80
Swing Target 30.32
Avg. Volume 1.75M
Sector Services | Major Airlines
Earning Date
Risk Rate Normal
Risk\Reward Ratio 3.49:1