“No Bulls Allowed”

Index Last Daily change R2 R1 PP S1 S2
DJX 19,971 (-0.61%) Down          
SPX 2,281 (-0.60%) Down 229.18 228.36 227.39 226.57 225.60
Nasdaq 5,614 (-0.83%) Down 126.03 125.42 124.78 124.17 123.53

Is Investor’s Honeymoon with Trump Over?

Yesterday, the large indexes on Wall Street recorded their largest daily losses this year, investors reminded that Trump’s immigration ban could be a forbearer of other executive policies adverse to the market. The presidential order signed by Trump on Friday forbids the entry of immigrants from 7 Islamic countries, including legal residents of America and Green Card holders. Over the course of this past weekend, thousands of people protested in major U.S. cities and airports, voicing disgust and contempt for the presidential order.

U.S. stocks had recorded a series of historic highs after the election of Donald Trump in November, encouraged by his promises to cut taxes and simplify regulation. It seems that investors had blindsided themselves, seeing only the market-friendly policies Trump had discussed over the course of his election campaign, with the immigration ban now serving as a reminder of the steps Trump could take that would in part undermine the economy.

Technology stocks (XLK) led the losses on the S&P 500 yesterday, the sector being one of the ones clearly hurt by the immigration restrictions, as the ban places hurdles before tech companies desirous of recruiting overseas talent.

In summary for the day, the Dow Jones fell 0.61% and closed beneath the 20,000 point level which it had scaled past for the first time ever last Wednesday. The Dow closed at 19,971 points yesterday. The S&P 500 shed 0.61%, the NASDAQ dropping 0.83% on the day. The Russell 2000, which is made up of the small cap U.S. stocks, recorded a 1.3% decline yesterday, relinquishing all of January’s gains.

Stocks fell yesterday despite the acceleration reported in U.S. consumer spending and the improvement seen in the December ’16 figure for pending home sales. These two figures pointed to local demand that could push up economic growth with the new year now afoot.

One of the stocks standing out in yesterday’s trading was American Airlines (AAL) which fell 4.4%, alongside United Continental which fell 3.6%. Some of the losses were attributed to the new travel limitations imposed on some Middle Eastern countries. The concern is that Trump’s ban on entry to the U.S. could be expanded to other countries or that stricter limitations could be placed on U.S. travel. Delta Airlines (DAL), which suffered a dire computer outage was compelled to cancel about 280 flights between Sunday and Monday. DAL ended sharply off by 4.1%.

On the S&P 500, 5 stocks rose to new 52-week highs, 5 also dipping to new yearly lows; on the NASDAQ, 49 stocks recorded new 52-week highs, 42 falling to new yearly lows.

About 6.67 billion shares changed hands on U.S. exchanges, slightly above the 6.65 billion average over the last 20 trading days.

Tuesday: The Federal Reserve will be commencing a 2-day meeting today, though today, earnings reports will probably nudge other economic and global developments out of center stage with crude giant, Exxon Mobil (XOM) reporting before opening, and Apple (AAPL) releasing its numbers after closing – tens of other companies reporting in between.

The reports before opening today will include PFE, MA, UPS, AET, and LLY. After closing, the main reporters will be X, APC, and AFL – and of course, AAPL.

A flood of earnings reports today is likely to retrain investors’ focus back on the market, and more specifically, fundamentals, i.e. what the market should really be looking at. Until now, 66% of the S&P 500 companies reporting have beaten out analysts’ forecasts, quarterly earnings rising 6.8% year over year.

In addition to earnings reports, today will likewise be jam-packed with economic figures. The morning kicks off with the Employment Cost Index at 8:30 N.Y. time, followed by the Case-Shiller housing price index at 9:00, and then the Chicago PMI at 9:45, with the Consumer Confidence Index coming out at 10:00.

The Fed will release its policy announcement tomorrow at 14:00.

After Closing: The Israeli pharmaceutical company, TEVA, tumbled almost 9% in late trading after the Delaware District Court invalidated 4 patents for the company’s flagship drug, Copaxone. Teva has already announced that it will appeal.

Tuesday’s Hot Stocks: TEVA, SANM, AEIS, RMBS, XOM, MA, UPS, LLY, VLO, HOG, ZBH

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 8:30 Personal Income 0.4% Medium
Monday 8:30 Personal Spending 0.4% Medium
Monday 10:00 Pending Home Sales 1.3% Medium
Tuesday 9:00 S&P Case Shiller Home Price Index 5.0% Medium
Tuesday 9:45 Chicago PMI 55.0 Medium
Tuesday 10:00 Consumer Confidence 112.5 High
Wednesday 8:15 ADP Employment Change 165K High
Wednesday 10:00 ISM Index 55.0 High
Wednesday 10:00 Construction Spending 0.2% Medium
Wednesday 10:30 Crude Inventories Low
Wednesday 14:00 FOMC Rate Decision 0.625% High
Wednesday 14:00 Auto Sales Low
Thursday 8:30 Initial Claims 250K High
Thursday 8:30 Unit Labor Costs 1.9% Medium
Friday 8:30 Nonfarm Payrolls 170K High
Friday 8:30 Unemployment Rate 4.7% High
Friday 10:00 Factory Orders 1.4% Medium
Friday 10:00 ISM Services 57.0 Medium

 

Earning Calendar

 

Symbol Company AM/PM Day
ZBH Zimmer Biomet Holdings, Inc. AM Tuesday
NUE Nucor Corporation AM Tuesday
PCAR PACCAR Inc AM Tuesday
VLO Valero Energy Corporation AM Tuesday
ABC AmerisourceBergen Corporation AM Tuesday
HOG Harley-Davidson, Inc. AM Tuesday
PNR Pentair plc AM Tuesday
NDAQ Nasdaq, Inc. AM Tuesday
TMO Thermo Fisher Scientific Inc. AM Tuesday
DHR Danaher Corporation AM Tuesday
AET Aetna Inc. AM Tuesday
MA Mastercard Incorporated AM Tuesday
LLY Eli Lilly and Company AM Tuesday
UPS United Parcel Service, Inc. AM Tuesday
PFE Pfizer Inc. AM Tuesday
XOM Exxon Mobil Corporation AM Tuesday
AAPL Apple Inc. PM Tuesday
CB Chubb Limited PM Tuesday
APC Anadarko Petroleum Corporation PM Tuesday
CHRW C.H. Robinson Worldwide, Inc. PM Tuesday
OKS ONEOK Partners, L.P. PM Tuesday
AFL Aflac Incorporated PM Tuesday
EA Electronic Arts Inc. PM Tuesday
ILMN Illumina, Inc. PM Tuesday
PPL PPL Corporation AM Wednesday
IR Ingersoll-Rand Plc AM Wednesday
BAX Baxter International Inc. AM Wednesday
MPC Marathon Petroleum Corporation AM Wednesday
MPLX MPLX LP AM Wednesday
JCI Johnson Controls International plc AM Wednesday
ADP Automatic Data Processing, Inc. AM Wednesday
MO Altria Group, Inc. AM Wednesday
FB Facebook, Inc. PM Wednesday
MET MetLife, Inc. PM Wednesday
LNC Lincoln National Corporation PM Wednesday
SYMC Symantec Corporation PM Wednesday
ALL The Allstate Corporation PM Wednesday
NXPI NXP Semiconductors N.V. PM Wednesday
EW Edwards Lifesciences Corporation PM Wednesday
IP International Paper Company AM Thursday
CI Cigna Corporation AM Thursday
BSX Boston Scientific Corporation AM Thursday
EL The Estee Lauder Companies Inc. AM Thursday
COP ConocoPhillips AM Thursday
CME CME Group Inc. AM Thursday
PM Philip Morris International Inc. AM Thursday
MRK Merck & Co., Inc. AM Thursday
AMZN Amazon.com, Inc. PM Thursday
V Visa Inc. PM Thursday
AMGN Amgen Inc. PM Thursday
MSI Motorola Solutions, Inc. PM Thursday
WY Weyerhaeuser Co. AM Friday
HSY The Hershey Company AM Friday
LYB LyondellBasell Industries N.V. AM Friday
CLX The Clorox Company AM Friday
PSX Phillips 66 AM Friday

 

31.1.2017

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
URI 129.39 GPRO MMM
INFY 13.74 DG OPB
FTI 33.17 DIS EEP
QCOM 53.50 NEP RRC
  CALA CTSH

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data 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 Close 26.1.2017 +0.09%
14  
15  
16  

Today’s Picks – Swing “New-York Strategy

No.1 – FAST

Company Name Fastenal Company
Entry Point 50.24
Stop Area 49.20
1st Target 50.95
Swing Target 51.51
Avg. Volume 2.76M
Sector Services | Industrial Equipment Wholesale
Earning Date
Risk Rate Normal
Risk\Reward Ratio 1.22:1

No.2 – ATI

Company Name Allegheny Technologies,
Entry Point 21.62
Stop Area 20.80
1st Target 22.20
Swing Target 23.69
Avg. Volume 2.82M
Sector Industrial Goods | Metal Fabrication
Earning Date
Risk Rate Normal
Risk\Reward Ratio 2.52:1