An upheaval! Despite the flurry of negative news that came in volleys this past week, from Hurricane Harvey which hit the southern U.S. coast, Friday’s disappointing employment figures and the launch of ballistic missiles by North Korea’s maniacal leader above the skies of Japan, indexes on Wall Street succeeded in recording a streak of 4 straight winning days, its first since mid-July. Trading volumes tapered on Friday in advance of investors’ long holiday weekend, with trading closed on Monday for Labor Day, investors returning to their trading desks only on Tuesday.
This coming week, the seasonality is going to sour on investors, and it will be interesting to see how the new catalysts are affecting the market. In contrast to the “Old World,” news isn’t impacting the market like it had in the past. The world has changed, the simple and most logical calculus now defunct. It’s no longer: “Bad News = Sell; Good News = Buy.” The trading world is now being controlled by sophisticated algorithms which look for news as triggers for activating preprogrammed computerized functions. Computer, over the last few years, have been programmed to buy stock, no matter what happens! That being the case, news only serve as a trigger, but the tendency programmed into computers to buy rather than sell, is precisely that which causes news which logically would be a negative trigger for traders to do the opposite, i.e. push stocks higher. News serves as a trigger, but the practical ins and outs of the news are entirely meaningless. All news has been good news, until now that is.
Despite the fact that for most of August the major stock indexes traded in negative territory, last week saved most indexes. Except for the Russell 2000 which fell on the month, the 3 large indexes, the Dow Jones, the S&P 500 and the NASDAQ all ended the month lightly up.
The S&P 500 will begin the coming week trading close to its latest highs. We wouldn’t be surprised to see another breakup attempt that doesn’t succeed in holding water.
Weekly Summary: The S&P 500 rose 1.34%. The Dow Jones ended the week up 0.86%, with the NASDAQ jumping 2.84%.
Have a great trading week!
|Wednesday||8:30||International Trade||$-44.6 B||Medium|
|Wednesday||9:45||PMI Services Index||54.6 to 56.9||Medium|
|Wednesday||10:00||ISM Non-Mfg Index||55.4||Medium|
|Thursday||8:30||Jobless Claims||239 K||Medium|
|Friday||10:00||Wholesale Trade||0.4 %||Medium|
|HPE||Hewlett Packard Enterprise Company||PM||Tuesday|
|PLAY||Dave & Buster’s Entertainment, Inc.||PM||Tuesday|
|CASY||Casey’s General Stores, Inc.||PM||Tuesday|
|NAV||Navistar International Corporation||AM||Wednesday|
|VRNT||Verint Systems Inc.||PM||Wednesday|
|DCI||Donaldson Company, Inc.||AM||Thursday|
|DVMT||Dell Technologies Inc.||AM||Thursday|
|SAIC||Science Applications International Corporation||PM||Thursday|
|PAY||VeriFone Systems, Inc.||PM||Thursday|
|KR||The Kroger Co.||AM||Friday|
Today’s Picks – Day Trading!
New York Strategy Swing
Today’s Picks – Swing “New-York Strategy”
Risk Rates: Normal – Regular size, High –Consider reducing size, Low – Consider increasing size