How to Rack in Cash in this Market!

IndexLastDaily changeR2R1PPS1S2
DJX20,6240.02%Up     
SPX2,3510.17%Up235.86235.48234.70234.32233.54
Nasdaq5,8390.41%Up130.34130.07129.56129.29128.78

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

 

DAYTIME (EST)EventForecastImpact
Wednesday10:00Existing Home Sales5.57MMedium
Wednesday14:00FOMC MinutesHigh
Thursday8:30Initial Claims242KHigh
Thursday9:00FHFA Housing Price Index0.4%Medium
Thursday11:00Crude InventoriesLow
Friday10:00Michigan Sentiment – Final95.8High
Friday10:00New Home Sales566KMedium

 

Earning Calendar

 

SymbolCompanyAM/PMDay
VIPSVipshop Holdings LimitedPMMonday
WABWestinghouse Air Brake Technologies CorporationAMTuesday
MMacy’s, Inc.AMTuesday
EXPDExpeditors International of Washington, Inc.AMTuesday
AAPAdvance Auto Parts, Inc.AMTuesday
GPCGenuine Parts CompanyAMTuesday
HDThe Home Depot, Inc.AMTuesday
WMTWal-Mart Stores, Inc.AMTuesday
EXASExact Sciences CorporationAMTuesday
ARIAARIAD Pharmaceuticals, Inc.AMTuesday
PWRQuanta Services, Inc.AMTuesday
XPOXPO Logistics, Inc.PMTuesday
TEXTerex CorporationPMTuesday
FSLRFirst Solar, Inc.PMTuesday
WLLWhiting Petroleum CorporationPMTuesday
NEMNewmont Mining CorporationPMTuesday
WCNWaste Connections, Inc.PMTuesday
FEFirstEnergy Corp.PMTuesday
NFXNewfield Exploration CompanyPMTuesday
CPRTCopart, Inc.PMTuesday
SIXSix Flags Entertainment CorporationAMWednesday
LAMRLamar Advertising CompanyAMWednesday
GRMNGarmin Ltd.AMWednesday
MBLYMobileye N.V.AMWednesday
NCLHNorwegian Cruise Line Holdings Ltd.AMWednesday
DISHDISH Network CorporationAMWednesday
HCNWelltower Inc.AMWednesday
SOThe Southern CompanyAMWednesday
TJXThe TJX Companies, Inc.AMWednesday
EVEaton Vance Corp.AMWednesday
TOLToll Brothers, Inc.AMWednesday
HFCHollyFrontier CorporationAMWednesday
SINASINA CorporationPMWednesday
WPXWPX Energy, Inc.PMWednesday
RIGTransocean Ltd.PMWednesday
SQSquare, Inc.PMWednesday
NBRNabors Industries Ltd.PMWednesday
SLCAU.S. Silica Holdings, Inc.PMWednesday
OASOasis Petroleum Inc.PMWednesday
CLVSClovis Oncology, Inc.PMWednesday
CAKEThe Cheesecake Factory IncorporatedPMWednesday
TSRATessera Holding CorporationPMWednesday
SMSM Energy CompanyPMWednesday
TSLATesla, Inc.PMWednesday
HPQHP Inc.PMWednesday
WBWeibo CorporationPMWednesday
CTRPCtrip.com International, Ltd.PMWednesday
LBL Brands, Inc.PMWednesday
CLRContinental Resources, Inc.PMWednesday
YAlleghany CorporationPMWednesday
RRCRange Resources CorporationPMWednesday
KSSKohl’s CorporationAMThursday
APAApache CorporationAMThursday
WWayfair Inc.AMThursday
IDCCInterDigital, Inc.AMThursday
ZBRAZebra Technologies CorporationAMThursday
HLFHerbalife Ltd.PMThursday
ACIAAcacia Communications, Inc.PMThursday
BIDUBaidu, Inc.PMThursday
HPEHewlett Packard Enterprise CompanyPMThursday
INTUIntuit Inc.PMThursday
BMRNBioMarin Pharmaceutical Inc.PMThursday
GPSThe Gap, Inc.PMThursday
JWNNordstrom, Inc.PMThursday
SPLKSplunk Inc.PMThursday
FLFoot Locker, Inc.AMFriday
COGCabot Oil & Gas CorporationAMFriday

 21.2.2017

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
CLVS$67.16 CLVSNUS
ARNC$30.16 SPWRCPB
CAT$99.50 CSIQCAR
CIT$44.00 SWKS 
UNH $156.00TIF 
   ANET 
   KHC 
   TMUS 
   KMB 
     
     
     

  

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

129.12.2016JWNShortClose6.1.2017+3.45%
26.1.2017TRGPLongClose9.1.2017+0.20%
39.1.2017NVDALongClose17.1.2017+1.02%
410.1.2017TLRDLongClose10.1.2017-3.27%
513.1.2017LWLongClose26.1.2017+0.09%
631.1.2017ATILongClose7.2.2017+0.09%
71.2.2017AKAOLongClose16.2.2017+11.29%
82.2.2017DATALongClose6.2.2017+13.09%
97.2.2017GNCShortClose9.2.2017+3.26%
109.2.2017PGLongClose13.2.2017-0.63%
119.2.2017ATILongClose14.2.2017+2.42%
1213.2.2017STXLongClose16.2.2017+1.26%
1314.2.2017CXWLongOpen +2.11%
1415.2.2017ZENLongOpen +1.89%
15      
16      

 Today’s Picks – Swing “New-York Strategy