What Would You Do with $1 Trillion?

S2 S1 PP R1 R2 Daily change Last Index
          0.57% 19,913 DJX
225.51 226.55 227.32 228.36 229.13 0.66% 2,280 SPX
122.99 123.58 123.98 124.57 124.97 0.86% 5,601 Nasdaq

Market Rally Fueled by Huge $1 Trillion Infrastructure Spending Bill

Stocks on Wall Street rallied on Tuesday to new historic highs in the wake of a huge – and aggressive – infrastructure spending platform valued at $1 trillion, which surprise, surprise, wasn’t proposed by Donald Trump but rather Democrats on Capitol Hill who wanted to spearhead fiscal stimulus to their own liking. The rally convinced traders that there’s still room for more gains, the new highs putting the ball back in the bulls’ hands.

Trump, for his part, also had his hands full, meeting with automobile execs, prodding them to increase U.S. manufacturing. Beyond that, Trump’s busy day also included the first outcropping of his vendetta against the Environmental Protection Agency (EPA), the emphasis being cutting regulation.

In summary for the day, the Dow Jones tacked on 0.6%, the S&P 500 rising 0.7%, with the NASDAQ being the strongest of the three with a rally of 0.9%. The Russell 2000 soared 1.6%. Assets considered safer shores like gold – which soared last week – recorded losses yesterday. Gold (GLD) shed 0.4%. Crude (USO), though, ended up 0.8%.

One of the stocks that stood out in yesterday’s trading was ATI which soared 31.1%, after the company surprised analysts with a smaller than expected loss, while simultaneously releasing strong guidance for the rest of the year, management weighing in on demand for next generation jet engines. GoPro (GPRO) rallied 7.8% after being upgraded by the analysts at Pacific Crest – that, coupled with concern about a short squeeze. The Chinese online retail giant, Alibaba, rose 3.1% after its results for last quarter trounced analysts’ top-line forecast by 8%.

On the flipside, the communication company, Verizon (VZ) lost altitude, plummeting 4.4% after its earnings results and cellular communication operations fell short of expectations, despite its good revenue numbers. The company’s future guidance also disappointed investors. Lockheed Martin (LMT) fell 2.2% on the background of weak guidance. Johnson & Johnson (JNJ) fell 1.9% on the heels of disappointing sales numbers.

On the economic front, December’s existing home sales came to an annualized 5.5 million units, slightly beneath expectations, while the combination of rising mortgage costs and rising home prices along with low supply led to price stagnation.

As of now, despite yesterday’s gains, stocks are still well-bound in a narrow price range. The technical indicators continue to signal losses to come, breadth narrowing and sentiment off the charts being weak. “Smart money” traders are simply yearning to see a rise in volatility. The fact of the matter is that last month underscored the narrowest trading range on the Dow since the year, 1900.

What enables, of course, the low level volatility is the Fed’s historic cheap money experiment, a policy expected to change this year. The central bank, which raised interest rates just twice over the last 10 years, is expected, at present, to hike rates three times this year.

Furthermore, Fed Chairwoman, Janet Yellen has changed the tone of her rhetoric of late. Before the elections, when Trump blamed her for keeping rates low to push up stock prices, she announced that she’s ready to let the economy heat up for a period of time – while just a few months later, she changed her viewpoint. Investors will be sure to remind her of the tough stance she had taken when the Fed holds its monetary policy meeting at the end of the month.

Wednesday: Wall Street is being roused again and traders now want to see yesterday’s rally continue into today, something that would be reminiscent of the shape the rally took right after the elections. On Wednesday, traders will go up against a flood of earnings reports; before opening, BA, ABT, UTX, STT, NSC, and TXT will be reporting, along with other firms. After closing, be primed for FFIV, T, LRCX, LVS, MCK, WDC and CTXS.

Until now, 70% of the S&P 500 companies that have reported have hit their earnings forecasts, with average earnings growth at 6.7%.

Today’s Economic Diary will feature the FHFA home price index at 9:00 N.Y. time, crude inventory numbers to be released by the U.S. Department of Energy at 10:30.

Wednesday’s Hot Stocks: BA, ABT, STT, TXT, UTX, CREE, STX, BOBE, CA

IPOs: None

Have a great trading day!

Economic Calendar
DAY TIME (EST) Event Forecast Impact
Tuesday 10:00 Existing Home Sales 5.55M Medium
Wednesday 9:00 FHFA Housing Price Index Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 Initial Claims 246K High
Thursday 10:00 Leading Indicators 0.5% Medium
Thursday 10:00 New Home Sales 589K Medium
Friday 8:30 GDP-Adv. 2.2% Medium
Friday 8:30 Durable Orders 3.0% Medium
Friday 10:00 Michigan Sentiment – Final 98.0 High

 

Earnings Calendar
Symbol Company AM/PM Day  
MCD McDonald’s Corporation AM Monday  
HAL Halliburton Company AM Monday  
YHOO Yahoo! Inc. PM Monday  
JNJ Johnson & Johnson AM Tuesday  
BABA Alibaba Group Holding Limited AM Tuesday  
LMT Lockheed Martin Corporation AM Tuesday  
KMB Kimberly-Clark Corporation AM Tuesday  
MMM 3M Company AM Tuesday  
TRV The Travelers Companies, Inc. AM Tuesday  
DD E. I. du Pont de Nemours and Company AM Tuesday  
CA CA, Inc. PM Tuesday  
TXN Texas Instruments Incorporated PM Tuesday  
COF Capital One Financial Corporation PM Tuesday  
STX Seagate Technology plc PM Tuesday  
HES Hess Corporation AM Wednesday  
ABT Abbott Laboratories AM Wednesday  
TXT Textron Inc. AM Wednesday  
NSC Norfolk Southern Corporation AM Wednesday  
STT State Street Corporation AM Wednesday  
UTX United Technologies Corporation AM Wednesday  
BA The Boeing Company AM Wednesday  
WDC Western Digital Corporation PM Wednesday  
LVS Las Vegas Sands Corp. PM Wednesday  
QCOM QUALCOMM Incorporated PM Wednesday  
EBAY eBay Inc. PM Wednesday  
MCK McKesson Corporation PM Wednesday  
XLNX Xilinx, Inc. PM Wednesday  
CCI Crown Castle International Corp. PM Wednesday  
LRCX Lam Research Corporation PM Wednesday  
VRTX Vertex Pharmaceuticals Incorporated PM Wednesday  
NOW ServiceNow, Inc. PM Wednesday  
CTXS Citrix Systems, Inc. PM Wednesday  
NOC Northrop Grumman Corporation AM Thursday  
SWK Stanley Black & Decker, Inc. AM Thursday  
SHW The Sherwin-Williams Company AM Thursday  
WRK WestRock Company AM Thursday  
BIIB Biogen Inc. AM Thursday  
TROW T. Rowe Price Group, Inc. AM Thursday  
MJN Mead Johnson Nutrition Company AM Thursday  
RTN Raytheon Company AM Thursday  
RCL Royal Caribbean Cruises Ltd. AM Thursday  
F Ford Motor Company AM Thursday  
CMCSA Comcast Corporation AM Thursday  
BMY Bristol-Myers Squibb Company AM Thursday  
LUV Southwest Airlines Co. AM Thursday  
DOW The Dow Chemical Company AM Thursday  
CAT Caterpillar Inc. AM Thursday  
CELG Celgene Corporation AM Thursday  
POT Potash Corporation of Saskatchewan Inc. AM Thursday  
PYPL PayPal Holdings, Inc. PM Thursday  
SBUX Starbucks Corporation PM Thursday  
JNPR Juniper Networks, Inc. PM Thursday  
INTC Intel Corporation PM Thursday  
MSFT Microsoft Corporation PM Thursday  
GOOGL Alphabet Inc. PM Thursday  
MXIM Maxim Integrated Products, Inc. PM Thursday  
KLAC KLA-Tencor Corporation PM Thursday  
VMW VMware, Inc. PM Thursday  
GD General Dynamics Corporation AM Friday  
NEE NextEra Energy, Inc. AM Friday  
CL Colgate-Palmolive Company AM Friday  
HON Honeywell International Inc. AM Friday  
AAL American Airlines Group Inc. AM Friday  
ABBV AbbVie Inc. AM Friday  
CVX Chevron Corporation AM Friday
25.1.2017
Today’s Picks – Day Trading
Symbol Breakout Breakdown Momentum Momentum
PG 88   MMP FSLR
AXP 78   DATA AKS
CNI 71.57   ATI YY
CCL 54.87   MTZ WATT
OZRK 54.92   LEN  
OCLR 10.19   ACM  
BMY   48.92 CRUS  
      ASYS  
      LITE  
      IVAC  
      TGH  
      IIVI  
      EMES  
New York Strategy Swing
# Date Stock Long\

Short

Statues Date Close Profit \ Loss
1 5.12.2016 CSC Long Close 6.12.2016 -1.62%
2 6.12.2016 YY Short Close 7.12.2016 +0.72%
3 7.12.2016 ROST Long Close 14.12.2016 +0.42%
4 9.12.016 TWLO Short Close 13.12.2016 +2.01%
5 12.12.2016 PDCO Long Close 14.12.2016 +0.48%
6 13.12.2016 TLRD Long Open 22.12.2016 +1.87%
7 13.12.2016 IGT Short Close 14.12.2016 -0.19%
8 14.12.2016 CC Long Close 21.12.2016 +0.52%
9 29.12.2016 JWN Short Close 6.1.2017 +3.45%
10 6.1.2017 TRGP Long Close 9.1.2017 +0.20%
11 9.1.2017 NVDA Long Close 17.1.2017 +1.02%
12 10.1.2017 TLRD Long Close 10.1.2017 -3.27%
13 13.1.2017 LW Long Open   +0.78%
Today’s Picks – Swing “New-York Strategy
Company Name The Procter & Gamble Company
Entry Point 88
Stop Area 87.20
1st Target 88.45
Swing Target 90.33
Avg. Volume 9.38M
Sector Consumer Goods | Personal Products
Earnings Date
Risk Rate Normal
Risk\Reward Ratio 2.91:1