Just a Rebound or is a V-shaped Reversal on the Way?

Wall Street stocks ended nicely up on Tuesday as investors digested positive Consumer Confidence figures which had risen to the 125.6 point level in February. When it comes to bad news, the market has very much taken a “wait and see” approach, preferring to push off the news they’d rather not hear to the next day. All-in-all, 70% of the American economy hinges on the American consumer, highlighting the importance of consumer confidence and adding needed context.

Just 48 hours ago, the market bears were of the belief that their pessimism would already pay off. After all, technical weakness, coupled with Pres. Trump’s failure to push through his health reform bill provided the inevitable catalysts for the market to continue to fall. We had already seen a turn for the worse in the technical picture after this past Tuesday brought with it the worst-trading day of the year, along with a weak rebound attempt. It had seemed that something the bears had been awaiting for so long was happening, a definitive peak that would signal an ensuing fall, or turn for the worse.

Even though it was perfectly logical to expect a difficult day at the beginning of the week, the bears made short shrift of the possibility that “correction buyers” might surface. Automation on Wall Street has become commonplace. The moment there’s weakness when the market opens, buyers immediately get in on the action. Correction buyers were nowhere to be found last week, but went all in yesterday, giving no ground and continuing the strength from the day before. A fantastic tack to take in its own right, it’s worked beautifully over the last few years.

Yesterday’s rebound was sufficiently big to offset the 2-prior trading days. The red candle left on Tuesday was a matter of technical import, but the strong rebound could now give the bulls the ammo needed to convert the upsurge into the V pattern needed to propel the market to a new March high.

In summary for the day, the S&P 500 rose 0.7%, led higher by financial stocks. The NASDAQ tacked on 0.6%, Apple (AAPL) soaring to a new all-time high.

On the S&P 500, 11 stocks rose to new 52-week highs, 7 dipping to new yearly lows; on the NASDAQ, 62 stocks recorded new 52-week highs, 54 falling to new yearly lows.

About 6.3 billion shares changed hands on U.S. exchanges, beneath the 7.1 billion average over the last 20 trading days.

Wednesday: With the end of Q1 this coming Friday, it’s fair to assume that portfolio managers’ manipulations will set in, the “window displaying” effect surfacing as fund managers buy into the best-performing stocks on the market. That way, they can show off the strongest-looking portfolio in a way that doesn’t seem too contrived.

The bulls now have little momentum to work with but still face technical challenges. At this point, what we have on our hands is a rebound from oversold levels. Will the bulls succeed in giving it new life, turning it into a V pattern?! Only time will tell!

Index Last Daily change R2 R1 PP S1 S2
DJX 20,702 0.73% Up          
SPX 2,359 0.73% Up 235.36 234.49 233.05 232.18 230.74
Nasdaq 5,875 0.60% Up 132.11 131.47 130.44 129.80 128.77

Wednesday’s Hot Stocks: RH, SONC, VRNT, PLAY, VRTX, PAYX

IPOs: None

Have a great trading day!

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 8:30 Adv. Wholesale Inventories 0.2% Medium
Tuesday 9:00 S&P Case-Shiller Home Price Index 5.6% Medium
Tuesday 10:00 Consumer Confidence 113.3 High
Wednesday 10:00 Pending Home Sales 2.4% Medium
Wednesday 10:30 Crude Inventories Low
Thursday 8:30 GDP – Third Estimate 2.0% High
Thursday 8:30 Initial Claims 245K High
Friday 8:30 Personal Income 0.4% Medium
Friday 8:30 Personal Spending 0.2% Medium
Friday 8:30 PCE Price Index 0.1% Medium
Friday 9:45 Chicago PMI 55.8 Medium
Friday 10:00 Michigan Sentiment – Final 97.6 High

 

 

Earning Calendar

 

Symbol Company AM/PM Day
RHT Red Hat, Inc. AM Monday
CCL Carnival Corporation AM Tuesday
FDS FactSet Research Systems Inc. AM Tuesday
DRI Darden Restaurants, Inc. AM Tuesday
MKC McCormick & Company, Incorporated AM Tuesday
VRNT Verint Systems Inc. PM Tuesday
PLAY Dave & Buster’s Entertainment, Inc. PM Tuesday
PAYX Paychex, Inc. AM Wednesday
LULU Lululemon Athletica Inc. PM Wednesday
WOR Worthington Industries, Inc. PM Wednesday

 

29.3.2017

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
TIF 96.42   CB  
SGMS 23.05   WDC  
PNR 63.20   OMER  
FB 142.31   CBIO  
      DRI  
      UAL  
      AKAO  
         
         
         
         
         
         

 

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 6.3.2017 LBTYK Long Close 14.3.2017 +2.47%
2 8.3.2017 FTNT Long Close 9.3.2017 +0.37%
3 13.3.2017 ARNC Long Close 21.3.2017 +1.92%
4 14.3.2017 MOMO Long Close 20.3.2017 +5.50%
5 15.3.2017 PTLA Long Close 17.3.2017 +0.65%
6 17.3.2017 NTNX Long Close 21.3.2017 -4.23%
7 22.3.2017 FNSR Short Close 25.3.2017 -2.78%
8 27.3.2017 AKAO Long Open   +8.31%
9            
10            
11            
12            
13            
14            
15            
16            
17            
18            


Today’s Picks – Swing “New-York Strategy

 No.1 –  AFSI

Company Name AmTrust Financial Services,
Entry Point 18.30
Stop Area 18.75
1st Target 17.80
Swing Target 16.58
Avg. Volume 1.44M
Sector Financial | Property & Casualty Insurance
Earning Date
Risk Rate Normal
Risk\Reward Ratio 2.03:1