Tech Sector Reels in Pain

It was a tale of two markets on Monday, as tech stocks finally gave the bears a little consolation, the rest of the market, though, continuing to hold its own. Small-cap stocks (IWM) outperformed, ending in positive territory, while the NASDAQ index (QQQ) fell 1.1%, recording its worst trading day since September 5th.

Apple (AAPL) continued falling for the fourth day in a row, closing off 0.88%. Apple fell 5% last week, its worst trading week of the year; just a week-and-a-half ago, it launched its iPhone 8 and a number of other new products. The stock is still trading up over 30% year-to-date.

The stock of Facebook (FB) fell 4.5%, recording its worst trading day of the year after company CEO, Mark Zuckerberg backtracked after pushing earlier to issue a new class of stock to retain voting control. Other lead tech stocks that lost ground included Amazon (AMZN), which fell 1.6%, and Netflix (NFLX) which ended sharply off by 4.7%.

The million dollar question as of now is whether this was simply a warnings sign or a healthy rotation, with the market digesting the latest gains and creating a staging ground for the next upsurge. It goes without saying that the bears want to believe that the weakness seen yesterday in FAANG stocks signals a change in the market’s character, though the problem is that it doesn’t seem that the bears have been able of late to create ongoing momentum after days the likes of which we saw yesterday. Bottom buyers have been able to quickly sniff out opportunities and impatient bargain hunters simply can’t hold back for too long!

The big problem is that the weakness has been well confined to the tech sector and has not spilled over to other stock groupings. Small-caps barely flinched – and even succeeded in closing at a new all-time high! It’s hard to be too concerned about the market peaking when so much of the market has retained its strength.

Despite the fact that in the larger scheme of things, the market has stayed rather strong, the tech sector has been reeling. The bears are celebrating their first round victory, though they’ll have to extend the selling pressure to other sectors if they want to be taken seriously. The bulls are still in control and bottom buyers aren’t going to go down without a fight.

Index Last Daily change
DJX 22,296 (0.24%) Down
SPX 2,497 (0.22%) Down
Nasdaq 6,371 (0.88%) Down

Tuesday’s Hot Stocks: RHT, LEG, DRI

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 9:00 S&P Case-Shiller  0.4 % Medium
Tuesday 10:00 New Home Sales 583 K

 

Medium
Tuesday 10:00 Consumer Confidence 120.2  High
Tuesday 11:50 Janet Yellen Speaks “Prospects for Growth: Reassessing the Fundamentals” Medium
Wednesday 8:30 Durable Goods Orders 1.5 % Low
Wednesday 10:00 Pending Home Sales Index -0.1 % Medium
Thursday 10:30 Oil Inventories Low
Thursday 8:30 GDP 3.1 % Medium
Thursday 8:30 Jobless Claims 270 K Medium
Friday 8:30 Personal Income and Outlays 0.3 % Medium
Friday 9:45 Chicago PMI 58.6 Medium
Friday 10:00 Consumer Sentiment 95.3 High

 

Earning Calendar

 

Symbol Company AM/PM Day
CCL Carnival Corporation AM Monday
THO Thor Industries, Inc. PM Monday
DRI Darden Restaurants, Inc. AM Tuesday
MU Micron Technology, Inc. PM Tuesday
NKE NIKE, Inc. PM Tuesday
WOR Worthington Industries, Inc. AM Wednesday
ALR Alere Inc. AM Wednesday
CAG Conagra Brands, Inc. AM Thursday
MKC McCormick & Company, Incorporated AM Thursday
CMC Commercial Metals Company AM Thursday
AKRX Akorn, Inc. AM Thursday
ACN Accenture plc AM Thursday
 

 Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
AMTD 47.26 WSM EXEL
WSM 50 FIVE W
DG 79.70   TRIP
    FSLR
    TTD
    WUBA
    AABA
    BABA
    TTWO
    EA

 

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 Close 14.9.2017 +1.35%
10 12.9.2017 CPB Short Close 15.9.2017 -1.10%
11 18.9.2017 INSM Long Close 22.9.2017 +1.92%
12 25.9.2017 GPS Long Open   +1.84%
13  
14
15
16  
17
18            

 


 

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

No.1 –   EFX

Company Name Equifax 
Entry Point 104.50
Stop Area 107.25
1st Target 103.15
Swing Target 89.89
Avg. Volume 2.7M
Sector Financial | Credit Services
Earning Date
Risk Rate Normal
Risk\Reward Ratio 5.31:1

 

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