Will Employment Numbers Provide the Goods?

Wall Street indexes closed on Thursday lightly up, but ended far from the daily high as investors were on pins and needles in advance of the meeting between the presidents of China and the U.S. The leaders of the two world powers met yesterday after the closing bell in Florida, a meeting that will end only today in the afternoon.

Investors are tense seeing that China’s president is thought of as a seasoned politician with experience aplenty in like matters, Trump, on the other, just a rookie on the world stage. The meeting stands to set the tone of what’s going to happen in the future, and of course, nobody wants to see a negative tone coming out of the meeting.

In Summary for the Day: the Dow Jones tacked on 0.07%. The S&P 500 ended with light gains of 0.19%, the NASDAQ rising 0.25%.

Yesterday, the good news was that the bears didn’t succeed in fostering downward momentum after Wednesday’s large negative reversal. The bad news was that the rebound attempt was particularly weak. It could be that there were a few “correction buyers” who kept the index above water, but there certainly weren’t enough buyers desirous of chasing prices higher.

Market players now have their eyes on the lookout for the March employment report which stands to be released today before opening. A strong reading on the ADP report on Wednesday had led to the day’s market rally, until the Fed minutes then led to a sharp downward reversal. The big question now is in the event that today’s employment numbers come out strong, would that bode well in light of the prospect of a reduction in the balance sheet of the Fed?

Indexes are at a dangerous point technically speaking, but in the meantime the bears have succeeded in wreaking little damage. There’s been an inflow of bad news which could have easily justified more aggressive selling in the market but the market’s been low on emotion, making that beyond the realm of possibility at present. There were good reasons to worry after the Fed’s Wednesday minute release, though, up until the market opened on Thursday, correction buyers were steeled and ready – primed to jump in and not let any further negative momentum develop.

The response to today’s employment numbers will be useful for understanding the market forces at play. If market players want to see strength to be able to exit their positions or alternatively, are too slow and hesitate before buying the market corrections, bears will have a little bit of momentum on their side. With that said, negative momentum has been rather rare in the current market, and betting against the market has usually proven itself a losing bet.

On the S&P 500, 8 stocks recorded new 52-week highs, 4 falling to new yearly lows; on the NASDAQ, 71 stocks recorded new 52-week highs, 69 falling to new yearly lows.

Trading volumes came to 6.4 billion shares, beneath the 6.8 billion average over the last 20 trading days.

Friday: The consensus for today’s employment report is 180 thousand new positions in the job market for March, the unemployment rate expected to remain stable at 4.7%, hourly wages expected to climb 0.2%.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,663 0.07% Up          
SPX 2,357 0.19% Up 236.91 236.18 235.30 234.57 233.69
Nasdaq 5,879 0.25% Up 132.73 132.39 132.04 131.70 131.35

Hot Stocks: ALR

IPOs: None

Have a great trading day!

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 10:00 ISM Index 57.0 High
Monday 10:00 Construction Spending 1.0% Medium
Monday 14:00 Auto Sales 0.2% Low
Tuesday 10:00 Factory Orders 0.9% Medium
Wednesday 8:15 ADP Employment Change 175K High
Wednesday 10:00 ISM Services 57.0 Medium
Wednesday 10:30 Crude Inventories Low
Wednesday 14:00 FOMC Minutes High
Thursday 8:30 Initial Claims 245K High
Friday 8:30 Nonfarm Payrolls 180K High
Friday 8:30 Unemployment Rate 4.7% High
Friday 10:00 Wholesale Inventories 0.4% Medium

 

  

Earning Calendar

 

Symbol Company AM/PM Day
MON Monsanto Company AM Wednesday
WBA Walgreens Boots Alliance, Inc. AM Wednesday
YUMC Yum China Holdings, Inc. PM Wednesday
BBBY Bed Bath & Beyond Inc. PM Wednesday
KMX CarMax Inc. AM Thursday
STZ Constellation Brands, Inc. AM Thursday
PSMT PriceSmart, Inc. PM Thursday
ALR Alere Inc. AM Friday

  

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
GBX 49.50   LB CLVS
AFL 73.33   AKRX  
ALK   89 MOMO  
IBM   172 DKS  
HFC   26.23    
         
         
         
         
         
         
         
         

  

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 Open   +2.42%
12 5.4.2017 IPXL Long Open   +3.50%
13            
14            
15            
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