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.

IndexLastDaily change
DJX22,296(0.24%)Down
SPX2,497(0.22%)Down
Nasdaq6,371(0.88%)Down

Tuesday’s Hot Stocks: RHT, LEG, DRI

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday9:00S&P Case-Shiller 0.4 %Medium
Tuesday10:00New Home Sales583 K

 

Medium
Tuesday10:00Consumer Confidence120.2 High
Tuesday11:50Janet Yellen Speaks“Prospects for Growth: Reassessing the Fundamentals”Medium
Wednesday8:30Durable Goods Orders1.5 %Low
Wednesday10:00Pending Home Sales Index-0.1 %Medium
Thursday10:30Oil InventoriesLow
Thursday8:30GDP3.1 %Medium
Thursday8:30Jobless Claims270 KMedium
Friday8:30Personal Income and Outlays0.3 %Medium
Friday9:45Chicago PMI58.6Medium
Friday10:00Consumer Sentiment95.3High

 

Earning Calendar

 

SymbolCompanyAM/PMDay
CCLCarnival CorporationAMMonday
THOThor Industries, Inc.PMMonday
DRIDarden Restaurants, Inc.AMTuesday
MUMicron Technology, Inc.PMTuesday
NKENIKE, Inc.PMTuesday
WORWorthington Industries, Inc.AMWednesday
ALRAlere Inc.AMWednesday
CAGConagra Brands, Inc.AMThursday
MKCMcCormick & Company, IncorporatedAMThursday
CMCCommercial Metals CompanyAMThursday
AKRXAkorn, Inc.AMThursday
ACNAccenture plcAMThursday
 

 Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
AMTD47.26WSMEXEL
WSM50FIVEW
DG79.70 TRIP
  FSLR
  TTD
  WUBA
  AABA
  BABA
  TTWO
  EA

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

12.8.2017AKAMShortClose3.8.2017-1.12%
23.8.2017NKELongClose8.8.2017+0.02%
34.8.2017SBUXShortClose16.8.2017+2.40%
48.8.2017NTAPLongClose9.8.2017-1.17%
522.8.2017ATHMLongClose23.8.2017+0.16%
623.8.2017AAPShortClose26.8.2017+0.98%
728.8.2017CREEShortClose30.8.2017-0.86%
830.8.2017TRIPLongClose11.9.2017+3.88%
91.9.2017VNTVLongClose14.9.2017+1.35%
1012.9.2017CPBShortClose15.9.2017-1.10%
1118.9.2017INSMLongClose22.9.2017+1.92%
1225.9.2017GPSLongOpen +1.84%
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15
16 
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Today’s Picks – Swing “New-York Strategy”

No.1 –   EFX

Company NameEquifax 
Entry Point104.50
Stop Area107.25
1st Target103.15
Swing Target89.89
Avg. Volume2.7M
SectorFinancial | Credit Services
Earning Date
Risk RateNormal
Risk\Reward Ratio5.31:1

 

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