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.

IndexLastDaily change
DJX21,184-0.1%Down
SPX2,436-0.12%Down
Nasdaq6,296-0.16%Down

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

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday10:00ISM Services57.0Medium
Monday10:00Factory Orders-0.2%Medium
Tuesday10:00JOLTS – Job OpeningsMedium
Wednesday10:30Crude Oil Inventories Low
Thursday8:30Initial Claims240KHigh
Friday10:00Wholesale Inventories-0.1%Medium

 

 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
CASYCasey’s General Stores, Inc.PMMonday
THOThor Industries, Inc.PMMonday
PLAYDave & Buster’s Entertainment, Inc.PMTuesday
UNFIUnited Natural Foods, Inc.PMTuesday
BF-BBrown-Forman CorporationAMWednesday
NAVNavistar International CorporationAMThursday
DVMTDell Technologies Inc.AMThursday
SJMThe J. M. Smucker CompanyPMThursday

  

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
ICE62 KORSMNK
MSI87.69 MOMOVMW
RSPP 35.27XPOJUNO
CAR 21.37NVDA 
   NAV 
   TSO 

  

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

11.5.2017AAOILongClose2.5.2017+0.54%
23.5.2017SCSSLongClose9.5.2017-1.71%
34.5.2017CRZOShortClose5.5.2017+0.30%
48.5.2017WTWLongClose16.5.2017+6.09%
515.5.2017AANLongClose16.5.2017-1.70%
616.5.2017CCLLongClose17.5.2017-0.41%
717.5.2017AMAGShortClose24.5.2017+5.38%
817.5.2017AANLongClose24.5.2017-2.59%
919.5.2017TRCOLongClose23.5.2017-1.45%
1019.5.2017GIMOLongClose26.5.2017+2.05%
111.6.2017BF.BLongOpen +0.95%
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Today’s Picks – Swing “New-York Strategy

No.1 –   RL 

Company Name
Ralph Lauren Corporation
Entry Point68.72
Stop Area70.05
1st Target68.10
Swing Target66.06
Avg. Volume1.47M
SectorConsumer Goods | Textile – Apparel Clothing
Earning Date
Risk RateNormal
Risk\Reward Ratio2.00:1

 

No.2 – SIG

Company NameSignet Jewelers 
Entry Point52.50
Stop Area53.55
1st Target51.60
Swing Target46.09
Avg. Volume1.78M
SectorServices | Jewelry Stores
Earning Date
Risk RateNormal
Risk\Reward Ratio6.10:1