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.

IndexLastDaily change
DJX21,785(0.10%)Down
SPX2,466(0.02%)Down
Nasdaq6,3980.07%Up

 

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

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Wednesday8:30International Trade$-44.6 BMedium
Wednesday9:45PMI Services Index54.6 to 56.9Medium
Wednesday10:00ISM Non-Mfg Index55.4Medium
Wednesday14:00Beige BookHigh
Thursday8:30Jobless Claims239 KMedium
Thursday11:00Oil InventoriesLow
Friday10:00Wholesale Trade0.4 %Medium

 

Earning Calendar

 

SymbolCompanyAM/PMDay
HPEHewlett Packard Enterprise CompanyPMTuesday
PLAYDave & Buster’s Entertainment, Inc.PMTuesday
CASYCasey’s General Stores, Inc.PMTuesday
NAVNavistar International CorporationAMWednesday
VRNTVerint Systems Inc.PMWednesday
DCIDonaldson Company, Inc.AMThursday
DVMTDell Technologies Inc.AMThursday
SAICScience Applications International CorporationPMThursday
FNSRFinisar CorporationPMThursday
PAYVeriFone Systems, Inc.PMThursday
KRThe Kroger Co.AMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
JUNO44.60ABBVDIS
TTD57.87FITCMCSA
 YYRACE
 GILDXL
 TRIPNWL
 TTDCMA
 BMY 
 ZTS 

  

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%
830.8.2017TRIPLongOpen +3.64%
91.9.2017VNTVLongOpen+0.87%
10
11 
12
13 
14
15
16 
17
18      

  

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

No.1 – EVH

Company NameEvolent Health
Entry Point17.50
Stop Area18.17
1st Target17.05
Swing Target16.40
Avg. Volume1.33M
SectorTechnology | Healthcare Information Services
Earning Date
Risk RateNormal
Risk\Reward Ratio1.64:1

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