And the Q1 Earnings Season Begins

Stocks on Wall Street ended lightly off on Wednesday, the S&P 500 closing beneath the 50 period EMA for the first time since the elections. The pressure on stocks hasn’t subsided in light of geopolitical concerns and Trump’s comments on the U.S. dollar and interest rates.

Newly elected President Trump said in an interview to the Wall Street Journal that the dollar is too strong; he made that comment despite having said that he would be happy to see interest rates remain low. The U.S. dollar (UUP), which has risen significantly over the last few months in light of forecasts for higher interest rates, has hurt American companies with multinational operations.

Investors sought cover yesterday in defensive stocks and other havens like gold. Industrial stocks (XLI) and raw materials (XLB) recorded the market’s strongest losses, together with financial stocks (XLF), utility stocks (XLU) and media stocks having given the S&P 500 its strongest tailwind.

The financial sector (XLF) fell 0.9% in advance of the results of 3 large banks which will be released today, essentially kicking off American firms’ Q1 earnings season. Analysts expect American firm earnings to record quarterly growth of 10%.

A signal that we could see further weakness can be seen in the S&P 500 having closed beneath the 50 period EMA for the first time since November 8th. Some market strategists perceive a close beneath the 50 period EMA as a prospective signal of more weakness to come. Traders will focus on how the market moves in relation to this level. The VIX index, thought of as the best fear gauge the market has to offer, continued to rear its ugly head – after having closed 2 days ago above the 15 point level for the first time since the November elections. The VIX index has soared 25% on the week.

An escalation in the tensions between the U.S., Russia, North Korea and Syria – after a U.S. cruise missile strike on a Syrian airbase last week and the rerouting of a U.S. naval armada to North Korea, have left investors on pins and needles. Investors are concerned that these developments are likely to throw Trump off track in so far as pushing through his proposed business friendly initiatives go, with the prospect of tax reform, which had spurred the market to a series of new historic highs since the elections, possibly now playing second fiddle to more weighty global events.

In summary for the day, the S&P 500 shed 0.38%, the NASDAQ falling 0.52%.

Wells Fargo (WFC), Citigroup (C), and J.P. Morgan (JPM) are the 3 large banks expected to report today, the last trading day of the week. Tomorrow, there won’t be trading on Wall Street in commemoration of Good Friday.

On the S&P 500, 12 stocks rose to new 52-week highs, just one dipping to a new yearly low; on the NASDAQ, 51 stocks recorded new 52-week highs, 42 falling to new yearly lows.

About 6.2 billion shares changed hands on U.S. exchanges, compared to the 6.6 billion average over the last 20 trading days.

Thursday: On the last trading day of the week, traders will focus on a trove of economic figures at 8:30 N.Y. time, with the release of the Producer Price Index and initial unemployment claims. The University of Michigan Consumer Confidence Index will be released at 10:00.

Among the companies that will be reporting today before opening, be primed for the numbers of these banks and financial firms: JPM, C, WFC, and PNC. Other reporting companies include INFY, and TSM.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,592 (-0.29%) Down          
SPX 2,345 (-0.38%) Down 236.91 236.18 235.30 234.57 233.69
Nasdaq 5,836 (-0.52%) Down 132.73 132.39 132.04 131.70 131.35

Thursday’s Hot Stocks: JPM, C, WFC, INFY, TSM, PNC, HBI, AERI

IPOs: CADE, TOCA, HCC

Have a great trading day!

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 10:00 JOLTS – Job Openings Medium
Wednesday 8:30 Export Prices ex-ag. Medium
Wednesday 8:30 Import Prices ex-oil Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 PPI -0.1% High
Thursday 8:30 Initial Claims 244K Medium
Thursday 10:00 Mich Sentiment High
Friday Market Close – Good Friday    


Earning Calendar

 

Symbol Company AM/PM Day
FAST Fastenal Company AM Wednesday
DAL Delta Air Lines, Inc. AM Wednesday
JPM JPMorgan Chase & Co. AM Thursday
WFC Wells Fargo & Company AM Thursday
C Citigroup Inc. AM Thursday
PNC The PNC Financial Services Group, Inc. AM Thursday
TSM Taiwan Semiconductor Manufacturing Company Limited AM Thursday
INFY Infosys Limited AM Thursday

  

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
VTR 65.89   COUP CMI
COUP 29.25   SRPT CRUS
        FAST
        URI
        UNP
        X
        TSCO
        TSLA

 

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 6.3.2017 LBTYK Long Close 14.3.2017 +2.47%
2 8.3.2017 FTNT Long Close 9.3.2017 +0.37%
3 13.3.2017 ARNC Long Close 21.3.2017 +1.92%
4 14.3.2017 MOMO Long Close 20.3.2017 +5.50%
5 15.3.2017 PTLA Long Close 17.3.2017 +0.65%
6 17.3.2017 NTNX Long Close 21.3.2017 -4.23%
7 22.3.2017 FNSR Short Close 25.3.2017 -2.78%
8 27.3.2017 AKAO Long Close 31.3.2017 +11.31%
9 30.3.2017 AFSI Short Close 3.4.2017 -6.63%
10 3.4.2017 ARNC Long Close 31.3.2017 -2.52%
11 3.4.2017 GME Short Close 10.4.2017 +1.95%
12 5.4.2017 IPXL Long Close 11.4.2017 +7.03%
13            
14            
15            
16            
17            
18            

 


 

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

Company Name
Nektar Therapeutics
Entry Point 18.50
Stop Area 17.95
1st Target 19.30
Swing Target 24.88
Avg. Volume 1.96M
Sector Healthcare | Biotechnology
Earning Date
Risk Rate Normal
Risk\Reward Ratio 11.60:1
Company Name  
Entry Point  
Stop Area  
1st Target  
Swing Target  
Avg. Volume  
Sector  
Earning Date  
Risk Rate  
Risk\Reward Ratio  

 No.1 – NKTR

Company Name
Nektar Therapeutics
Entry Point 18.50
Stop Area 17.95
1st Target 19.30
Swing Target 24.88
Avg. Volume 1.96M
Sector Healthcare | Biotechnology
Earning Date
Risk Rate Normal
Risk\Reward Ratio 11.60:1