Déjà vu!

Stocks on Wall Street traded up on Wednesday after President Trump communicated his agreement to extend the debt limit to December 15th, among other things, to budget moneys for the Federal Emergency Management Agency (FEMA) for rebuilding after the destructive hurricane, Harvey. The market’s trend to date has been to flee in fear at the first sign of problems, and thereafter, to regain its footing, and then climb back higher. The moment investors have the chance to digest some of the events, they understand that everything isn’t all calm and placid as it may have seemed.

The Beige Book, which constitutes a summary of the economic figures received by the different Fed branches throughout the U.S., was released yesterday afternoon in advance of the rate discussions which will be held by the Fed Open Market Committee (FOMC) in two weeks’ time. The central bank reported moderately paced economic expansion in the month of August, despite a slowdown in hiring growth in most districts. The Fed added that the chances for an uptick in inflation remain low. These figures will have an impact when the bank comes to decide about when it’s best to hike rates. Additionally, the Fed is worried about the prolonged slowdown in the auto industry; likewise, the bank noted that it’s too early to assess the full brunt of Hurricane Harvey.

In summary for the day, the S&P 500 recorded gains of 0.31%, the energy sector (XLE) recording the best performance on the market. That sector’s gains notwithstanding, the airline stock, United Continental (UAL) and Newell Brands (NWL) recorded the worst performance on the index. United slashed its current quarter revenue forecast, earmarking Hurricane Harvey as the catalyst for the projected decline. Newell Brands announced that almost all of its suppliers in Louisiana and Texas are closed due to Harvey’s wake.

Daily Summary: The NASDAQ recorded gains of 0.28%, large tech stocks like Facebook (FB) and Netflix (NFLX) succeeded in finding their grip.

The stocks of companies in the vacation and leisure arena continued falling yesterday, investors keeping a watchful eye on extreme Category 5, Hurricane Irma, which hit Puerto Rico yesterday and which is now headed to Florida’s shores. The stock of the hotel chain, Marriot (MAR) ended off 0.5%.

About 6.3 billion shares changed hands on U.S. exchanges, above the daily average of 5.8 billion shares over the last 20 trading days.

Thursday: What was clearer than anything else in yesterday’s market movement was a feeling of déjà vu, the pattern repeating itself time in and time out. It wasn’t the first time this year that we saw an upsurge after a day of significant declines. Every sell-off day was immediately followed up by a quick rebound, the prior concerns fizzling away.

The reason that the market rose is that it’s simply a pattern that keeps on working. When something works in the market, the automatic software programs are programmed to continue capitalizing on it! This would perhaps bother old school traders who thought that the moment everyone sees the same pattern it will stop working, but that’s not the thinking in the new world.

It’s impossible not to wonder whether Hurricane Irma, which could cause significant economic damage, could affect market movement. The market didn’t respond too much to Hurricane Harvey which struck Houston, but it’s hard to ignore two back to back natural disasters.

There are not a lot of positive catalysts as of now, but it doesn’t seem to matter all that much. The pre-programmed buying programs continue to work, and the technical support levels are holding their ground. Until it changes, there’s no reason to think that the above-mentioned pattern won’t repeat itself.

The Economic Diary today will include initial unemployment claims at 8:30 N.Y. time and the release of crude reserves which were pushed back from Wednesday to Thursday because of the shortened trading week.

Index Last Daily change
DJX 21,808 0.25% Up
SPX 2,466 0.31% Up
Nasdaq 6,393 0.28% Up

Today’s Hot Stocks: RH, VRNT, DVMT

IPOs: None

Have a great trading week!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 10:00 Factory Orders -3.1% Medium
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
Wednesday 14:00 Beige Book High
Thursday 8:30 Jobless Claims 239 K Medium
Thursday 11:00 Oil Inventories Low
Friday 10:00 Wholesale Trade 0.4 % Medium

 

 

Earning Calendar

 

Symbol Company AM/PM Day
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
FNSR Finisar Corporation PM Thursday
PAY VeriFone Systems, Inc. PM Thursday
KR The Kroger Co. AM Friday

 

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
DVAX 19.60 HP EVHC
GILD 84.10 GPS DRI
  M WAB
  DAL  
   
     
     
 
     

 

 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 Open   +3.64%
9 1.9.2017 VNTV Long Open -0.47%
10
11  
12
13  
14
15
16  
17
18            

  

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

No.1 – EVH 

Company Name Evolent Health
Entry Point 17.50
Stop Area 18.12
1st Target 17.05
Swing Target 16.40
Avg. Volume 1.33M
Sector Technology | Healthcare Information Services
Earning Date
Risk Rate Normal
Risk\Reward Ratio 1.77:1

 No.2 – 

Company Name
Entry Point  
Stop Area
1st Target  
Swing Target
Avg. Volume  
Sector
Earning Date  
Risk Rate
Risk\Reward Ratio

 

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