The $1,000 Club

Stocks on Wall Street got off to an ill-fated start this trading week with yesterday’s losses, the drop in Apple (AAPL) offsetting the rally in energy and financial stocks which has of late lagged behind the stock market.

The energy sector (XLE) – the worst performing sector year to date – and the banking sector, which has also lagged behind the main market indexes, both drew buyers. Energy stocks bucked the continued drop in the price of crude. Banks are expected to record higher earnings growth the more the environment points to a forward rate curve with a higher upward slope.

Monday’s economic figures pointed to slower service sector activity for the month of May due to a decline in new orders. Given the decline in orders in April for commodities needed for manufacturing processes and the standstill in Q1 worker productivity, the figures as a whole make for a less than conducive environment for economic growth.

Despite the soft economic numbers, traders are still betting that the Federal Reserve will hike rates in its upcoming policy meeting next week. As of now, chances of 93.6% are being placed on a quarter point hike come June 14th.

In Summary for the Day: The Dow Jones recorded losses of 0.1%, the S&P 500 falling 0.12% and the NASDAQ shedding 0.16%.

Energy stocks rallied higher despite the continued drop in the price of crude. Crude fell against the backdrop of the London terror attack and a rise in tension in the Persian Gulf countries. Saudi Arabia, Egypt, the United Arab Emirates and Bahrain announced a coordinated move to cut off diplomatic ties with Qatar, claiming the country fuels terrorism.

One of the stocks that stood out in yesterday’s trading was Google (GOOGL), which rose 0.8%, joining the exclusive $1,000 club, after its closing price surpassed that noteworthy mark for the first time ever yesterday. In so doing, GOOGL joined Amazon (AMZN), which accomplished that feat not long ago.

On the negative side, yesterday, Herbalife (HLF) fell 6.7%, the declines spurred by its own weak guidance. Bristol-Myers (BMY) fell 4.7% after delivering a lackluster presentation at the yearly conference of the American Society of Clinical Oncology in Chicago.

On the S&P 500, 28 stocks rose to new 52-week highs, 11 dipping to new yearly lows; on the NASDAQ, 82 stocks recorded new 52-week highs, 70 falling to new yearly lows.

Yesterday, 5.32 billion shares changed hands on U.S. exchanges, making it one of the weakest days of the trading year, and far beneath the 6.6 billion average over the last 20 trading days.

Tuesday: It could be said that the market is trying to consolidate in the form of higher price levels above the previous high set at the beginning of March, the list of headwinds growing longer and longer, now spanning negative seasonality (June is a weak month for the market), the high chances of a rate hike next week, the possibility of another hike come year’s end, growing evidence of a slowing economy and lastly, investors’ high level of complacency.

A lot will hinge on Trump’s ability to carry through his tax cut plan, health reform initiative, and huge infrastructure spending investments. Likewise, a lot will depend on how aggressive the Fed will be vis a vis monetary tightening between now and the end of the year.

Investors continue to have their eyes peeled on a number of political developments that will crescendo this Thursday, from Britain’s elections and former FBI Chief, James Comey’s Senate testimony about the pressure exerted upon him by Trump to end the investigation into the connection between Russia and his first National Security Advisor, Michael Flynn.

Index Last Daily change
DJX 21,184 -0.1% Down
SPX 2,436 -0.12% Down
Nasdaq 6,296 -0.16% Down

Tuesday’s Hot Stocks: ACOR, THO, CASY, PRGO

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Monday 10:00 ISM Services 57.0 Medium
Monday 10:00 Factory Orders -0.2% Medium
Tuesday 10:00 JOLTS – Job Openings Medium
Wednesday 10:30 Crude Oil Inventories   Low
Thursday 8:30 Initial Claims 240K High
Friday 10:00 Wholesale Inventories -0.1% Medium

 

 

 

Earning Calendar

 

Symbol Company AM/PM Day
CASY Casey’s General Stores, Inc. PM Monday
THO Thor Industries, Inc. PM Monday
PLAY Dave & Buster’s Entertainment, Inc. PM Tuesday
UNFI United Natural Foods, Inc. PM Tuesday
BF-B Brown-Forman Corporation AM Wednesday
NAV Navistar International Corporation AM Thursday
DVMT Dell Technologies Inc. AM Thursday
SJM The J. M. Smucker Company PM Thursday

  

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
ICE 62   KORS MNK
MSI 87.69   MOMO VMW
RSPP   35.27 XPO JUNO
CAR   21.37 NVDA  
      NAV  
      TSO  

  

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 1.5.2017 AAOI Long Close 2.5.2017 +0.54%
2 3.5.2017 SCSS Long Close 9.5.2017 -1.71%
3 4.5.2017 CRZO Short Close 5.5.2017 +0.30%
4 8.5.2017 WTW Long Close 16.5.2017 +6.09%
5 15.5.2017 AAN Long Close 16.5.2017 -1.70%
6 16.5.2017 CCL Long Close 17.5.2017 -0.41%
7 17.5.2017 AMAG Short Close 24.5.2017 +5.38%
8 17.5.2017 AAN Long Close 24.5.2017 -2.59%
9 19.5.2017 TRCO Long Close 23.5.2017 -1.45%
10 19.5.2017 GIMO Long Close 26.5.2017 +2.05%
11 1.6.2017 BF.B Long Open   +0.95%
12            
13            
14            
15            
16            
17            
18            

 

Today’s Picks – Swing “New-York Strategy

No.1 –   RL 

Company Name
Ralph Lauren Corporation
Entry Point 68.72
Stop Area 70.05
1st Target 68.10
Swing Target 66.06
Avg. Volume 1.47M
Sector Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio 2.00:1

 

No.2 – SIG

Company Name Signet Jewelers 
Entry Point 52.50
Stop Area 53.55
1st Target 51.60
Swing Target 46.09
Avg. Volume 1.78M
Sector Services | Jewelry Stores
Earning Date
Risk Rate Normal
Risk\Reward Ratio 6.10:1