The Quiet Before the Storm

Stocks on Wall Street ended close to their daily low on Tuesday as traders distanced themselves from risky assets leading up to today’s far-reaching political and economic headlines. The general elections in Britain, amidst the country’s EU departure, along with the European Central Bank (ECB) policy meeting and the Senate testimony of former FBI chief, James Comey, are all likely to impact investor sentiment today.

At the time of his firing, Comey had been investigating whether Donald Trump’s 2016 election campaign had used Russian interference to sway the results. Comey’s testimony is likely to place a damper on Trump’s ability to execute his election campaign agenda; from cutting regulation to sweeping tax reform, the momentum on Trump’s side is already low.

Investors will also be carefully eyeing the British election, current PM, Theresa May, trying to enlarge her parliamentary majority to win a greater mandate for leaving the Euro zone after the British people voted in June of last year in favor of divorcing the continental bloc. Investors will also have their hands full with the ECB policy meeting.

There’s no doubt that for investors, today will be one of the most meaningful days of the week. If there were investors out there looking for volatility to rear its head in the marketplace, apparently, they’ll get their wish this Thursday and Friday.

In Summary for the Day: The Dow Jones fell 0.23%, the S&P 500 declining 0.28% and the NASDAQ retreating 0.33%.

Leading up to Thursday, investors have already adopted more defensive positions. Gold rose 1.1% to $1,293.47 per ounce, the precious metal having traded at its highest level since November ’16 in intraday trading.

One of the stocks standing out in yesterday’s trading was the department store chain, Macy’s (M), which fell 8.2% to the $21.90 level after warning investors that its profit margins could shrink even more. Macy’s warning hurt other department store chains as well, JCP falling 4.1%, SHLD shedding 2.5%, and JWN slipping 3.6%.

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.

About 6.42 billion shares changed hands on U.S. exchanges, compared to the 6.6 billion average over the last 20 trading days.

Wednesday: Traders will be focusing on tech stocks and crude prices today, in the vacuum between now and tomorrow’s event-packed trading. All of the tech stocks beloved by investors – AMZN, FB, and GOOGL – saw weakness in the the last trading hour yesterday. Traders will be waiting to see whether the weakness continues into today.

AMZN, FB and GOOGL are part of the stock grouping known as FANG, the stocks which succeeded in outperforming the market to the greatest extent year-to-date. NFLX is also a member of the elite club.

The 2,423 point level is a technical level on the S&P 500 which is set to be tested on Thursday, the 8-day EMA traversing this level. In the event this level holds its own, investors’ tendency to “buy the corrections” could still play out. Investors’ tendency to buy every weakness or market price corrections has kept stocks from experiencing a deeper price correction. In the event this level doesn’t hold its own and prop up the market, the S&P 500 is likely to test the 2,400 point level.

Crude trading today is also likely to see volatility. The Energy Information Administration (EIA) is expected to release petroleum and petroleum product reserves at 10:30 N.Y. time. Crude in fact rallied yesterday, rising 1.7% and closing at the $48.19 barrel level. After trading concluded yesterday, the American Petroleum Institute (API) report featured an inventory decline of 4.6 million barrels. A key psychological level for crude traders now is $47.

IndexLastDaily change
DJX21,136(-0.23%)Down
SPX2,429(-0.28%)Down
Nasdaq6,275(-0.33%)Down

Wednesday’s Hot Stocks: PLAY, UNFI, AMBA, PRGO, BF.B

IPOs: SSTI

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
ZTS63.30 MOMOM
ICE62 GOOSHDS
XLNX67.75 SGMSKSS
DLTR 76NEMCC
LOW 78.10RSPPFL
   LITECBI
   FNSR 
   OCLR 
   LVS 

 

 

 

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 –   LULU

Company Name
Lululemon Athletica
Entry Point52.62
Stop Area51.45
1st Target53.20
Swing Target56.85
Avg. Volume4.46M
SectorConsumer Goods | Textile – Apparel Clothing
Earning Date
Risk RateNormal
Risk\Reward Ratio3.62:1

No.2 – RH

Company NameRH
Entry Point45
Stop Area47.20
1st Target44.05
Swing Target38
Avg. Volume2.06M
SectorServices | Home Furnishing Stores
Earning Date
Risk RateHigh
Risk\Reward Ratio3.18:1