How to Rack in Cash in this Market!

Index Last Daily change R2 R1 PP S1 S2
DJX 20,624 0.02% Up          
SPX 2,351 0.17% Up 235.86 235.48 234.70 234.32 233.54
Nasdaq 5,839 0.41% Up 130.34 130.07 129.56 129.29 128.78

By: Shlomo Cooper, Senior Analyst at Tradenet

This past week, stocks rallied quickly at the beginning of the week, the gains ultimately recorded come week’s end on the S&P 500 and the Dow being the best of the year. Fed Chairwoman, Janet Yellen, made it clear in her congressional testimony last week that another rate hike is impending and that strong consumer figures and that increasingly strong inflation figures, support a rate hike. This Wednesday, the release of the Fed minutes from its latest meeting, will therefore be critical in terms of its ability to signal to the market whether already in March we’re going to get our first rate hike of the year.

In summary, on the week, the S&P 500 soared 1.5%, the Dow rallying 1.7%, the NASDAQ closing sharply up by 1.8%.

The indexes didn’t succeed in making significant progress on Friday, but the intraday pattern was a remake of what we had seen all week long. Stocks kicked off the day slowly, but buyers appeared – already in the first trading hour – with the weakness falling by the wayside and the market charging higher until the finish line. The S&P 500 has closed near its all-time high on each of the last 8 trading days.

There’s no shortage of statistical data to hone in the fact that Wall Street movement has been one-sided of late, though it’s important to say it like it is, i.e. momentum tends to last longer than investors believe to be logical or reasonable. On an emotional front, most traders and investors feel that the market has rallied too much and too quickly – and they are therefore ready for a correction movement. The rational approach is that a strong market like ours is not going to lose ground easily seeing that there are so many investors who are trying to play catch up and who will look to make up lost ground with every light decline.

The big challenge in a market like our own is that stocks are becoming more and more stretched, with entry points requiring investors to accept higher risk thresholds. In contrast to the commonly accepted approach, a stretched market usually tends to become more stretched and therefore, players need to have a higher level of confidence in market momentum to continue putting their money to work.

The bears are still mulling over what the next market reversal catalyst will be. Most of the pessimism centers on chances that Trump’s fiscal policy won’t go through Congress easily or smoothly. The bears are still convinced that disaster lurks around the corner, but it’s worth noting that they couldn’t have been more wrong about the market’s timing until now.

It may perhaps sound too simplistic to be truly effective, but the key to the most recent success was to stick to the trend and to not try to anticipate the reversal. That’s the way to make money in a market like this!

This coming week, investors will be on the hunt for more good news about the economy and signs from the economy that the wheels are churning to advance tax reform. The earnings reports of large retail chains and the minutes from the latest Fed meeting will be on center-stage. The Q4 earnings season is nearing its end and this week, traders will be following HD, WMT, and KSS, which will be among the large reporting companies.

Have a great trading week!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Wednesday 10:00 Existing Home Sales 5.57M Medium
Wednesday 14:00 FOMC Minutes High
Thursday 8:30 Initial Claims 242K High
Thursday 9:00 FHFA Housing Price Index 0.4% Medium
Thursday 11:00 Crude Inventories Low
Friday 10:00 Michigan Sentiment – Final 95.8 High
Friday 10:00 New Home Sales 566K Medium

 

Earning Calendar

 

Symbol Company AM/PM Day
VIPS Vipshop Holdings Limited PM Monday
WAB Westinghouse Air Brake Technologies Corporation AM Tuesday
M Macy’s, Inc. AM Tuesday
EXPD Expeditors International of Washington, Inc. AM Tuesday
AAP Advance Auto Parts, Inc. AM Tuesday
GPC Genuine Parts Company AM Tuesday
HD The Home Depot, Inc. AM Tuesday
WMT Wal-Mart Stores, Inc. AM Tuesday
EXAS Exact Sciences Corporation AM Tuesday
ARIA ARIAD Pharmaceuticals, Inc. AM Tuesday
PWR Quanta Services, Inc. AM Tuesday
XPO XPO Logistics, Inc. PM Tuesday
TEX Terex Corporation PM Tuesday
FSLR First Solar, Inc. PM Tuesday
WLL Whiting Petroleum Corporation PM Tuesday
NEM Newmont Mining Corporation PM Tuesday
WCN Waste Connections, Inc. PM Tuesday
FE FirstEnergy Corp. PM Tuesday
NFX Newfield Exploration Company PM Tuesday
CPRT Copart, Inc. PM Tuesday
SIX Six Flags Entertainment Corporation AM Wednesday
LAMR Lamar Advertising Company AM Wednesday
GRMN Garmin Ltd. AM Wednesday
MBLY Mobileye N.V. AM Wednesday
NCLH Norwegian Cruise Line Holdings Ltd. AM Wednesday
DISH DISH Network Corporation AM Wednesday
HCN Welltower Inc. AM Wednesday
SO The Southern Company AM Wednesday
TJX The TJX Companies, Inc. AM Wednesday
EV Eaton Vance Corp. AM Wednesday
TOL Toll Brothers, Inc. AM Wednesday
HFC HollyFrontier Corporation AM Wednesday
SINA SINA Corporation PM Wednesday
WPX WPX Energy, Inc. PM Wednesday
RIG Transocean Ltd. PM Wednesday
SQ Square, Inc. PM Wednesday
NBR Nabors Industries Ltd. PM Wednesday
SLCA U.S. Silica Holdings, Inc. PM Wednesday
OAS Oasis Petroleum Inc. PM Wednesday
CLVS Clovis Oncology, Inc. PM Wednesday
CAKE The Cheesecake Factory Incorporated PM Wednesday
TSRA Tessera Holding Corporation PM Wednesday
SM SM Energy Company PM Wednesday
TSLA Tesla, Inc. PM Wednesday
HPQ HP Inc. PM Wednesday
WB Weibo Corporation PM Wednesday
CTRP Ctrip.com International, Ltd. PM Wednesday
LB L Brands, Inc. PM Wednesday
CLR Continental Resources, Inc. PM Wednesday
Y Alleghany Corporation PM Wednesday
RRC Range Resources Corporation PM Wednesday
KSS Kohl’s Corporation AM Thursday
APA Apache Corporation AM Thursday
W Wayfair Inc. AM Thursday
IDCC InterDigital, Inc. AM Thursday
ZBRA Zebra Technologies Corporation AM Thursday
HLF Herbalife Ltd. PM Thursday
ACIA Acacia Communications, Inc. PM Thursday
BIDU Baidu, Inc. PM Thursday
HPE Hewlett Packard Enterprise Company PM Thursday
INTU Intuit Inc. PM Thursday
BMRN BioMarin Pharmaceutical Inc. PM Thursday
GPS The Gap, Inc. PM Thursday
JWN Nordstrom, Inc. PM Thursday
SPLK Splunk Inc. PM Thursday
FL Foot Locker, Inc. AM Friday
COG Cabot Oil & Gas Corporation AM Friday

 21.2.2017

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
CLVS $67.16   CLVS NUS
ARNC $30.16   SPWR CPB
CAT $99.50   CSIQ CAR
CIT $44.00   SWKS  
UNH   $156.00 TIF  
      ANET  
      KHC  
      TMUS  
      KMB  
         
         
         

  

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 29.12.2016 JWN Short Close 6.1.2017 +3.45%
2 6.1.2017 TRGP Long Close 9.1.2017 +0.20%
3 9.1.2017 NVDA Long Close 17.1.2017 +1.02%
4 10.1.2017 TLRD Long Close 10.1.2017 -3.27%
5 13.1.2017 LW Long Close 26.1.2017 +0.09%
6 31.1.2017 ATI Long Close 7.2.2017 +0.09%
7 1.2.2017 AKAO Long Close 16.2.2017 +11.29%
8 2.2.2017 DATA Long Close 6.2.2017 +13.09%
9 7.2.2017 GNC Short Close 9.2.2017 +3.26%
10 9.2.2017 PG Long Close 13.2.2017 -0.63%
11 9.2.2017 ATI Long Close 14.2.2017 +2.42%
12 13.2.2017 STX Long Close 16.2.2017 +1.26%
13 14.2.2017 CXW Long Open   +2.11%
14 15.2.2017 ZEN Long Open   +1.89%
15            
16            

 Today’s Picks – Swing “New-York Strategy