20,000 on the Dow Escapes the Radar Again

S2 S1 PP R1 R2 Daily change Last Index
          (-0.38%) 19,887 DJX
226.00 226.23 226.65 226.88 227.30 (-0.35%) 2,269 SPX
121.68 122.00 122.28 122.60 122.88 0.19% 5,532 Nasdaq

The path of the Dow Jones to the 20,000 point level went off course again yesterday as the sell-off in crude dragged the energy sector down, souring the market atmosphere. The Dow Jones ended off by 0.37%, closing the day at the 19,888 point level. The 20,000 point mark ever so close, all the index needs is one rally to hit the important psychological milestone. The S&P 500 ended off 0.35%. The NASDAQ was the only index ending up on the day, with gains of 0.19%, setting another historic high – at the 5,531 point level.

The merger and acquisition (M&A) front was buzzing yesterday with announcements about new deals. The drug company, MACK, rose 1.9% after announcing that another industry player, Ipsen, has agreed to purchase some of its suite, including its pancreatic cancer drug, in a deal valued over $1 billion. MACK added that it would be terminating 80% of its workforce in an attempt to focus on its pipeline of new drugs.

Ariad Pharmaceuticals (ARIA) soared 72% after Takeda Pharmaceuticals agreed to buy out the company at a price of $24 per share, reflecting a 75% premium on the stock’s Friday closing price. The all-cash deal is expected to be completed by the end of February. Stocks of other pharmaceutical companies responded favorably, rising on the day, including EXAS, GILD, and AMGN. The biotech sector (IBB) soared on the day, with gains of 1.43%.

Crude fell beneath the $53 barrel level on Monday, continuing to see downward pressure after the figures released last Friday on the number of active rigs, which pointed to a continued rise in crude production. Friday’s figures showed the number of active rigs climbing for the 10th straight week. The last few weeks have been tumultuous in the crude market, with investors pitting the OPEC agreement to slash production against U.S. producers’ move to ramp up production. When considering that crude rallied substantially on the background of expectations for a recalibration of market prices after month-long discussions about a potential cut, the market is now at risk of being at a point where it just “sells the news,” irrespective of supply and demand. Crude ended off 3.8% at $51.96, its low point since mid-December. The energy sector (XLE) recorded losses of 1.4% on the day.

Alibaba (BABA) rallied almost 1% after its CEO, Jack Ma, met with president-elect, Donald Trump. Trump and Ma  noted that the meeting was successful, the focus being on employment and small businesses.

Tuesday: Today there will only be a few numbers on the Economic Diary, which will include the JOLTS employment reading at 10:00 N.Y. time and wholesale trade figures at the same time. The NFIB small business optimism survey will be released earlier at 6:00 AM.

The 2016 Q4 earnings season will open up today, kicked off by Alcoa (AA), which is expected to release its numbers before the opening bell. Analysts are expecting solid earnings numbers for the earnings season, Q4 expected to register year-over-year earnings growth of 4.4%. Presuming we see earnings growth, that would make it 2 seasons of

back-to-back growth, after an almost 2-year earnings recession; in Q3 2016, earnings saw a turnaround and grew by 4%.

Tuesday’s Hot Stocks: CUDA, WMB, AA

Initial Public Offerings: None

Have a great trading day!


Economic Calendar
DAY TIME (EST) Event Forecast Impact
Tuesday 10:00 JOLTS – Job Openings Medium
Tuesday 10:00 Wholesale Inventories 0.9% Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 Export Prices ex-ag. Medium
Thursday 8:30 Import Prices ex-oil Medium
Thursday 8:30 Initial Claims 255K High
Friday 8:30 PPI 56.6 High
Friday 8:30 Retail Sales 0.7% Medium
Friday 10:00 Business Inventories 0.6% Medium
Friday 10:00 Mich Sentiment 98.5 High


Earnings Calendar
Symbol Company AM/PM Day
CMC Commercial Metals Company AM Monday
GPN Global Payments Inc. AM Monday
LW Lamb Weston Holdings, Inc. AM Tuesday
AA Alcoa Corporation AM Tuesday
TSM Taiwan Semiconductor Manufacturing Company Limited AM Thursday
DAL Delta Air Lines, Inc. AM Thursday
PNC The PNC Financial Services Group, Inc. AM Friday
BLK BlackRock, Inc. AM Friday
BAC Bank of America Corporation AM Friday
WFC Wells Fargo & Company AM Friday
JPM JPMorgan Chase & Co. AM Friday
INFY Infosys Limited AM Friday

AM – Before Market Open

PM – After Market Close



Today’s Picks – Day Trading

Symbol Breakout Breakdown Momentum Momentum
HALO 14.38   DDD WTW
ALXN 145.42   CLVS TSO
APA   62 YPF X
TRV   117.28 HCA MBLY

New York Strategy Swing

# Date Stock Long\


Statues Date Close Profit \ Loss # Date Stock Long \Short Statues Date Close Profit \ Loss
1 5.12.2016 CSC Long Close 6.12.2016 -1.62% 17            
2 6.12.2016 YY Short Close 7.12.2016 +0.72% 18            
3 7.12.2016 ROST Long Close 14.12.2016 +0.42% 19            
4 9.12.016 TWLO Short Close 13.12.2016 +2.01% 20            
5 12.12.2016 PDCO Long Close 14.12.2016 +0.48% 21            
6 13.12.2016 TLRD Long Open 22.12.2016 +1.87% 22            
7 13.12.2016 IGT Short Close 14.12.2016 -0.19% 23            
8 14.12.2016 CC Long Close 21.12.2016 +0.52% 24            
9 29.12.2016 JWN Short Close 6.1.2017 +3.45% 25            
10 6.1.2017 TRGP Long Close 9.1.2017 +0.20% 26            
11 9.1.2017 NVDA Long Open   +2.69% 27            
12             28            
13             29            
14             30            
15             31            
16             32          


No.1 – TLRD
No.2 – PTLA

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



Company Name
Tailored Brands
Entry Point 22.60
Stop Area 21.90
1st Target 23.30
Swing Target 28.76
Avg. Volume 1.35M
Sector Services | Apparel Stores
Earnings Date
Risk Rate Normal
Risk\Reward Ratio 8.80:1


Company Name Portola Pharmaceuticals,
Entry Point 26.36
Stop Area 24.95
1st Target 26.90
Swing Target 28.60
Avg. Volume 1.05M
Sector Healthcare | Biotechnology
Earnings Date
Risk Rate Normal
Risk\Reward Ratio 1.59:1