NASDAQ at a High but Momentum Weakening

Wall Street dropped on Monday as investors became concerned that Trump’s plans to cut taxes and jumpstart the economy will take longer than previously expected to actualize themselves. The American stock market had rallied to record a series of new highs ever since Trump was declared the winner, though the rally had fizzled out in the last few weeks as investors became anxious about the lack of clarity about the White House’s proposals to slash taxes and regulation.

The S&P 500 and the Dow Jones ended lower after FBI Director, James Comey, shared in a congressional hearing that there’s no evidence supporting Pres. Trump’s claims that incumbent president, Barack Obama, had wiretapped Trump Tower election campaign headquarters. In so doing, Comey cast doubt on the reliability of Trump’s barrage of tweets.

In summary for the day, the Dow Jones shed 0.04%, the S&P 500 dropping 0.2%. The NASDAQ ended lightly up by 0.01%. The Russell 2000 ended off 0.5%. Crude fell 1.2%, despite headlines that OPEC is likely to extend its production cut.

The retail sector (XRT) fell 1.5%, entirely erasing all of the gains accrued since Trump was elected into office, investors worried at present about the implications of higher taxes on imported goods and commodities, a bill in the works which is likely to lead to higher consumer prices.

One of the stocks that stood out in yesterday’s trading was Apple (AAPL), which rose 1.05% to a new historic high of $141.46 after the investment bank, Cowen&Co, raised its price target on the stock. Caterpillar (CAT) soared 2.68% on the day, giving the Dow its biggest push after reporting a smaller than expected sales decline over the last 3 months.

Nektar (NKTR) soared 43.3% after announcing positive results for its experimental chronic back pain drug.

On the S&P 500, 26 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 103 stocks recorded new 52-week highs, 38 falling to new yearly lows.

About 5.8 billion shares changed hands on U.S. exchanges, compared to the 7.1 billion average over the last 20 trading days.

Tuesday: Traders, who are seeking a market catalyst, are likely to find one now in the stream of Federal Reserve speakers who are expected to address the market today. The speeches will include that of the N.Y. Fed Bank President, William Dudley, who will be speaking at 6:35 N.Y. time in London. Then, the president of the Boston branch, Eric Rosengren, will be speaking in Indonesia. The president of the Kansas City branch, Esther George, will be speaking about the economy in the afternoon, topped off by the speech of Cleveland’s Fed Bank President, Loretta Mester, who will be speaking after closing at 18:00 on the topic of the media.

Besides the Fed, investors will continue to follow Republicans’ progress in their campaign to replace Obamacare. The vote on the health law is expected in two days’ time, on Thursday. Thursday’s vote will be but a small step because in the event the bill passes in the House of Representatives, it will need to do the same in the Senate. Passing the new health law is seen as absolutely necessary before the Republican-dominated Congress can move to cut taxes, a platform that had provided market support ever since November of last year.

The Economic Diary today is an empty slate and traders will focus on the reports of a number of key companies. Before opening, be primed for the numbers of GIS, LEN, and CSIQ. After closing, be on the lookout for SWN, NKE, and FDX.

Index Last Daily change R2 R1 PP S1 S2
DJX 20,906 (-0.04%) Down          
SPX 2,373 (-0.20%) Down 237.86 237.31 236.82 236.27 235.78
Nasdaq 5,902 0.01% Up 132.44 132.13 131.79 131.48 131.14

Tuesday’s Hot Stocks: GIS, LEN, CSIQ, NKTR, and ESPR

IPOs: None

Have a great trading day!

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Wednesday 9:00 FHFA Housing Price Index Medium
Wednesday 10:00 Existing Home Sales 5.54M Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 Initial Claims 239K High
Thursday 8:30 New Home Sales 560K Medium
Friday 10:00 Durable Orders 1.3% Medium

  

Earning Calendar

 

Symbol Company AM/PM Day
LEN Lennar Corporation AM Tuesday
GIS General Mills, Inc. AM Tuesday
LUX Luxottica Group S.p.A. AM Tuesday
FDX FedEx Corporation PM Tuesday
NKE NIKE, Inc. PM Tuesday
CTAS Cintas Corporation PM Tuesday
FTI TechnipFMC plc PM Tuesday
FIVE Five Below, Inc. PM Wednesday
PVH PVH Corp. PM Wednesday
CAG Conagra Brands, Inc. AM Thursday
ACN Accenture plc AM Thursday
CMC Commercial Metals Company AM Thursday
MU Micron Technology, Inc. PM Thursday
GME GameStop Corp. PM Thursday
ALR Alere Inc. AM Friday

  

21.3.2017

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
HAWK 39.30   ESPR KSS
RHT 85.01   NKTR FSLR
NFLX 146.50   AUPH  
TD   48.91    
VRX   10.50    
         
         
         
         
         
         
         
         

 

 New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 1.2.2017 AKAO Long Close 16.2.2017 +11.29%
2 2.2.2017 DATA Long Close 6.2.2017 +13.09%
3 7.2.2017 GNC Short Close 9.2.2017 +3.26%
4 9.2.2017 PG Long Close 13.2.2017 -0.63%
5 9.2.2017 ATI Long Close 14.2.2017 +2.42%
6 13.2.2017 STX Long Close 16.2.2017 +1.26%
7 14.2.2017 CXW Long Close 23.2.2017 +4.53%
8 15.2.2017 ZEN Long Close 23.2.2017 +1.60%
9 21.2.2017 AA Long Close 23.2.2017 -1.17%
10 22.2.2017 SCOR Short Close 24.2.2017 +0.78%
11 23.2.2017 NTAP Long Close 8.3.2017 +2.95%
12 27.2.2017 DATA Long Close 1.3.2017 -2.14%
13 6.3.2017 LBTYK Long Close 14.3.2017 +2.47%
14 8.3.2017 FTNT Long Close 9.3.2017 +0.37%
15 13.3.2017 ARNC Long Open   +2.83%
16 14.3.2017 MOMO Long Close 20.3.2017 +5.50%
17 15.3.2017 PTLA Long Close 17.3.2017 +0.65%
18 17.3.2017 NTNX Long Open   -2.21%

 


 

Today’s Picks – Swing “New-York Strategy

No.1 –    TRCO

Company Name Tribune Media 
Entry Point 37.74
Stop Area 36.95
1st Target 38.25
Swing Target 40
Avg. Volume 1.29M
Sector Services | Broadcasting – TV
Earning Date
Risk Rate Normal
Risk\Reward Ratio 2.86:1

 

No.2 – FNSR

Company Name Finisar 
Entry Point 26.99
Stop Area 27.68
1st Target 26.55
Swing Target 25.61
Avg. Volume 3.60M
Sector Technology | Networking & Communication Devices
Earning Date
Risk Rate Normal
Risk\Reward Ratio 2.00:1