Weakness Continues, Dow Drops 200 in 2 Days!

On Tuesday, the market opened weakly, but closed strongly. Yesterday, it was the opposite! Despite the fact that this type of volatility is, under certain circumstances, likely to play into traders’ hands, that’s not the case in the current market. Market movement is a function of apathy and computerized trading more than strong emotion or a change in sentiment.

On Wednesday, the market closed off, led lower by I.B.M. (IBM) and a drop in the price of crude. The Dow Jones closed down 0.58%, IBM being the heaviest weight on the index after missing on the top line with its latest numbers and falling just under 5% on the day. The S&P 500 closed off 0.18%, the energy sector (XLE) weighing on the market with losses of 1.4% after crude fell 3.76% and closed at the $50.44 barrel level.

It’s not fear or greed underlying the movement, but rather the code written up by algorithm traders, along with traders looking for a relative advantage. It seems that even the news streaming into the market doesn’t matter anymore. News is nothing more than a means of justifying movement in one direction or another for a couple of hours, but movement from one day to the next isn’t being driven by the headlines.

There’s no doubt that there are a number of negative market factors, like the weak reaction to date towards earnings reports, the likes of I.B.M. (IBM), yesterday’s prime example – along with the lack of progress on the part of the Trump administration in everything regarding fiscal reform. Likewise, the fact that the Fed is apparently tightening its stance – and that the economy doesn’t seem to be heading anywhere – with treasuries acting as if a recession is impending, and you’ve got a lot of hurdles ahead.

For the sake of transparency, market players will agree that the market isn’t acting “normally,” which has been the case for some time, though it seems like nobody knows what can stir the pot and get the market back on track. It would seem that a change of this fashion can come only after a substantial correction. The fear of losing money is one of the things that can indeed stir emotions. “Correction buying” has already become something that’s automated, something devoid of human thought or feeling.

The market has been on the verge of a price correction for some time now, and the weak movement and yesterday’s horrendous close did nothing to change that picture. Indexes are still holding their ground above March’s low, though the Dow has been leading the movement on the downside.

This is not a healthy market. At the same time, structural factors at play in the way the market is functioning are preventing it from carrying out a healthy correction.

On the economic front, the Beige Book on the economy, which was released yesterday by the Federal Reserve, illustrated growing economic activity in the Fed’s 12 districts of operation. The market’s expectations for a June rate hike have tapered of late on the background of disappointment about the clip of inflation as well as retail chain sales results.

On the S&P 500, 17 stocks rose to new 52-week highs, 2 dipping to new yearly lows; on the NASDAQ, 40 stocks recorded new 52-week highs, 59 falling to new yearly lows.

About 6.07 billion shares changed hands on U.S. exchanges, compared to the 6.41 billion average over the last 20 trading days.

Thursday: The key economic figures today will be initial unemployment claims at 8:30 N.Y. time, along with the release of the Philadelphia Fed Survey at the same hour. The Leading Indicators Index will be released at 10:00.

Today’s earnings reports will include PM and TRV before opening. V will be releasing its numbers after closing.

IndexLastDaily changeR2R1PPS1S2
DJX20,404(-0.58%)Down     
SPX2,338(-0.17%)Down236.91236.18235.30234.57233.69
Nasdaq5,8630.23%Up132.73132.39132.04131.70131.35

Today’s Hot Stocks: NUE, PM, TRV, EABY, QCOM, CSX, URI

IPOs: None

Have a great trading day!

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday8:30Empire Manufacturing13.0Medium
Monday10:00NAHB Housing Market Index70Medium
Tuesday8:30Housing Starts1260KMedium
Tuesday8:30Building Permits1240KMedium
Tuesday9:15Industrial Production0.4%Medium
Wednesday10:30Crude InventoriesLow
Wednesday14:00Fed’s Beige BookHigh
Thursday8:30Initial Claims241KHigh
Thursday8:30Philadelphia Fed21.8Medium
Thursday10:00Leading Indicators0.3%Medium
Friday10:00Existing Home Sales5.55MMedium

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
UALUnited Continental Holdings, Inc.PMMonday
NFLXNetflix, Inc.PMMonday
GSThe Goldman Sachs Group, Inc.AMTuesday
UNHUnitedHealth Group IncorporatedAMTuesday
BACBank of America CorporationAMTuesday
JNJJohnson & JohnsonAMTuesday
HOGHarley-Davidson, Inc.AMTuesday
CMAComerica IncorporatedAMTuesday
OMCOmnicom Group Inc.AMTuesday
IBMInternational Business Machines CorporationPMTuesday
YHOOYahoo! Inc.PMTuesday
LRCXLam Research CorporationPMTuesday
BLKBlackRock, Inc.AMWednesday
ABTAbbott LaboratoriesAMWednesday
MSMorgan StanleyAMWednesday
TXTTextron Inc.AMWednesday
URIUnited Rentals, Inc.PMWednesday
EBAYeBay Inc.PMWednesday
CSXCSX CorporationPMWednesday
QCOMQUALCOMM IncorporatedPMWednesday
AXPAmerican Express CompanyPMWednesday
PMPhilip Morris International Inc.AMThursday
TRVThe Travelers Companies, Inc.AMThursday
BBTBB&T CorporationAMThursday
DOVDover CorporationAMThursday
DHID.R. Horton, Inc.AMThursday
NUENucor CorporationAMThursday
VVisa Inc.PMThursday
GEGeneral Electric CompanyAMFriday
NEENextEra Energy, Inc.AMFriday
HONHoneywell International Inc.AMFriday
SLBSchlumberger LimitedAMFriday
STISunTrust Banks, Inc.AMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
NI24.29 WRKCRZO
WBA84.02 WUBACTRP
SCSS26 WNFX
PNC 115EDU 
SLCA 42AMBA 

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

16.3.2017LBTYKLongClose14.3.2017+2.47%
28.3.2017FTNTLongClose9.3.2017+0.37%
313.3.2017ARNCLongClose21.3.2017+1.92%
414.3.2017MOMOLongClose20.3.2017+5.50%
515.3.2017PTLALongClose17.3.2017+0.65%
617.3.2017NTNXLongClose21.3.2017-4.23%
722.3.2017FNSRShortClose25.3.2017-2.78%
827.3.2017AKAOLongClose31.3.2017+11.31%
930.3.2017AFSIShortClose3.4.2017-6.63%
103.4.2017ARNCLongClose31.3.2017-2.52%
113.4.2017GMEShortClose10.4.2017+1.95%
125.4.2017IPXLLongClose11.4.2017+7.03%
1313.4.2017NKTRLongOpen -0.39%
14      
15      
16      
17      
18