Quiet Before the Storm

Wall Street closed flat on Thursday, after media stocks plunged in intraday trading against the backdrop of warnings from Walt Disney (DIS) and Comcast (CMCSA). Media’s stock losses, though, were offset by gains in health stocks, with the stock of AbbVie (ABBV) taking the lead with gains of 6.13%.

CMCSA toppled 6.2%, the cable company warning of potential subscriber loss. DIS fell 4.4% after the company issued an earnings growth warning.

Investors continue to keep their eyes peeled on Hurricane Irma which has put Florida in the strike zone  – and that’s just a week after Hurricane Harvey struck, sowing disaster in large swaths of Houston. In the wake of the fear and anxiety about the destruction Irma could wreak, insurance stocks have exhibited weakness, the sector index falling 1.9%.

Daily Summary: The Dow Jones fell 0.10%. The S&P 500 ended negligibly off by 0.02%, the NASDAQ rising 0.07%.

Bears have plenty of arguments why the market should be falling. Here’s there impressive laundry list: hurricanes, central banks, tepid economic growth, and seasonality, with many other risk factors to boot! They’re convinced that their fundamental arguments will ultimately be backed up by other investors and that when push comes to shove, a nasty downtrend will develop – but in the meantime, they’ve been losing money aplenty in light of their inability to accurately time the trend reversal.

The market’s been transmitting a dual message: keep an open mind and focus on price movement. The worst stance in this market would be to continue to expect the market to peak because of the fundamental claims and macro conditions.

Fundamentally, nothing changed this week since Tuesday’s sharp declines. Hurricane Irma is still lurking in the vicinity of Florida’s coast and the maneuvering with North Korea is far from over, but traders are aware of the market’s inability to crack through support levels on the downside.

The key to this market is to keep on tracking trading patterns and be on the lookout for a change in the character of the market. Traders will get their telling hint that the time has come to go short when we see a breakdown of main support level and when we see lower lows. That will come when the market bounce backs fail to lead prices higher and prior support levels are broken down.

If you’d like to navigate the market effectively, focus on price patterns. When the character of the market changes, the time will come to be more bearish.

The bears made a few solid attempts last month to find fissures in support levels, but to no avail! The negative news isn’t a factor. The real snapshot can be found in price movement! When the bearish arguments start impacting the larger picture, we’ll see that reflected in price movement.

Waiting for a downtick in the market has been very similar to waiting for Hurricane Irma. There’s a feeling of foreboding that the disaster is going to come, but we’re now in neutral territory and optimism is high enough to prevent sellers from taking the reins. Preparedness and vigilance and choosing stocks selectively are on aggregate the best approach at this juncture.

About 6.4 billion shares traded hands on U.S. exchanges, above the 5.8 billion average over the last 20 trading days.

Index Last Daily change
DJX 21,785 (0.10%) Down
SPX 2,466 (0.02%) Down
Nasdaq 6,398 0.07% Up

 

Friday’s Hot Stocks: PAY, FNSR, EFX, SAIC

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
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
JUNO 44.60 ABBV DIS
TTD 57.87 FIT CMCSA
  YY RACE
  GILD XL
  TRIP NWL
  TTD CMA
  BMY  
  ZTS  

  

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 +0.87%
10
11  
12
13  
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15
16  
17
18            

  

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

No.1 – EVH

Company Name Evolent Health
Entry Point 17.50
Stop Area 18.17
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 1.64:1

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