Island of Calm!

Even though Pandora (P) and Valeant (VRX) certainly caught traders’ attention yesterday, market indexes stayed smugly in place, moving purposely around the zero line in one of the quietest trading days in decades. Catalysts nowhere to be found, the S&P 500 went into neutral! A sign of the calm on Wall Street was clear as day, the VIX index – also known as the fear gauge – recording a high with a streak of 12 straight days beneath the 11 point level. In other words, investors have never felt so at ease.

Strong earnings reports from American firms and the victory of Emmanuel Macron in Sunday’s French presidential elections have instilled investors with confidence. At the same time, it’s always important to recall that stocks’ current valuations are higher than their historical averages. Investors continue to be full of hope, pinning their hopes on Trump slashing corporate and personal income taxes.

The stock of Apple (AAPL), which 2 days ago soared to a market cap of over $800 billion for the first time in history, continued climbing higher yesterday. Apple ended up 0.64% on the day at the $153.99 level, the behemoth now trading at a market cap of $803 billion, the highest market cap ever recorded by an American firm.

In summary for the day, the Dow Jones shed 0.17%, the S&P 500 ending negligibly off by 0.1%, with the NASDAQ tacking on 0.29%. Gold continued losing altitude, falling another 0.9%, crude dropping 1.2% in advance of today’s inventory release.

One of the stocks commanding attention yesterday was Valeant Pharmaceuticals (VRX) which soared 24.4% on the background of its mixed results. The company missed on the topline, but bottom-line earnings surprised on the upside. The sharp gains, though, more than anything else, came on the heels of management’s strong guidance. The online furniture retailer, Wayfair (W), soared 20.7% on the background of its earnings and revenue surprise, recording a 7% rise in active clients; management also released strong revenue guidance. United Continental (UAL) took off 4.8%, making it the strongest player in the entire airline sector yesterday after reporting that April traffic had risen 7.4%.

On the negative side, the global rental car company, Hertz (HTZ) collapsed 14.2% after missing on the revenue and earnings front on the background of continued pressure from companies like Uber, and other car services. Pandora (P) fell 4.4% after missing analysts’ revenue forecast, and after lowering its own forward looking forecasts.

On the economic front, although the NFIB Small Business Optimism Index did indeed drop slightly in April, it managed to record its sixth consecutive reading at a historically high level – a run not seen since Reagan was president in 1983. In another report released yesterday – the JOLTS report – the number of new positions in the American economy rose to 5.7 million, the highest level seen since July 2016. The JOLTS numbers are the employment stats preferred by the Fed.

On the S&P 500, 42 stocks rose to new 52-week highs, 3 dipping to new yearly lows; on the NASDAQ, 120 stocks recorded new 52-week highs, 59 falling to new yearly lows.

About 6.7 billion shares changed hands on U.S. exchanges, in keeping with the average over the last 20 trading days.

Wednesday: Yesterday, President Trump fired the head of the FBI, James Comey, concerns now raised that this development is likely to push off the materialization of Trump’s agenda. The news release came out after closing yesterday, meaning that Wall Street is yet to respond.

A number of earning reports could be of interest to traders today, including Disney (DIS), News Corp (NWSA) and Discovery Communications (DISCA), which reported yesterday after closing. Other reports that stood out yesterday included NVIDIA (NVDA), which soared over 10% in late trading, and Yelp (YELP), which toppled over 28% in late trading.

The companies expected to report today before opening included Crocs (CROX), Mylan (MYL) and Sodastream (SODA).

Before opening today, the economic news will focus on import and export figures for April from the U.S. Department of Commerce at 8:30 N.Y. time. Like every

Index Last Daily change R2 R1 PP S1 S2
DJX 20,976 (-0.17%) Down          
SPX 2,397 (-0.10%) Down 236.91 236.18 235.30 234.57 233.69
Nasdaq 6,121 0.29% Up 132.73 132.39 132.04 131.70 131.35

week, traders will be awaiting the weekly crude inventory figures at 10:30.

Wednesday’s Hot Stocks: YELP, NVDA, DIS, FOSL, TRIP, EA, SODA, NCLH, BID

IPOs: FPH

Have a great trading day!

 

Economic Calendar

 

DAY TIME (EST) Event Forecast Impact
Tuesday 10:00 JOLTS – Job Openings Medium
Tuesday 10:00 Wholesale Inventories Medium
Wednesday 8:30 Import Prices Medium
Wednesday 8:30 Export Prices Medium
Wednesday 10:30 Crude Oil Inventories Low
Wednesday 14:00 Treasury Budget Low
Thursday 8:30 PPI High
Thursday 8:30 Initial Claims High
Friday 8:30 CPI High
Friday 8:30 Retail Sales High
Friday 10:00 Mich Sentiment – Prelim High
Friday 10:00 Business Inventories Medium

  

Earning Calendar

 

Symbol Company AM/PM Day
JD JD.COM, INC. PM Monday
TSN Tyson Foods, Inc. AM Monday
MAR Marriott International, Inc. PM Monday
HTZ Hertz Global Holdings, Inc. PM Monday
DISCA Discovery Communications, Inc. AM Tuesday
DF Dean Foods Company AM Tuesday
W WAYFAIR INC. AM Tuesday
TSRO Tesaro, Inc. PM Tuesday
TRIP TripAdvisor, Inc. PM Tuesday
DIS The Walt Disney Company PM Tuesday
EA Electronic Arts Inc. PM Tuesday
BID Sotheby’s AM Wednesday
MYL Mylan N.V. AM Wednesday
NCLH Norwegian Cruise Line Holdings Ltd. AM Wednesday
SODA SodaStream International Ltd. AM Wednesday
VMC Vulcan Materials Company AM Wednesday
SNAP Snap Inc. PM Wednesday
FOXA Twenty-First Century Fox, Inc. PM Wednesday
KSS Kohl’s Corporation AM Thursday
TEVA Teva Pharmaceutical Industries Limited AM Thursday
M Macy’s, Inc. AM Thursday
JWN Nordstrom, Inc. PM Thursday
CYBR CyberArk Software Ltd. PM Thursday
JCP J. C. Penney Company, Inc. AM Friday

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
ZTS 59.74   AAOI TSN
DE 114.13   PII  
FSLR 36.27   AAL  
NCLH 56.29   UAL  
AAL 47.39   VRX  
UA 20   CTRP  
APA   50.99 CVGI  

  

New York Strategy Swing

# Date Stock Long\

Short

Statues Data Close Profit\

Loss

1 3.4.2017 ARNC Long Close 31.3.2017 -2.52%
2 3.4.2017 GME Short Close 10.4.2017 +1.95%
3 5.4.2017 IPXL Long Close 11.4.2017 +7.03%
4 13.4.2017 NKTR Long Close 21.4.2017 +0.61%
5 25.4.2017 LULU Short Close 2.5.2017 -0.17%
6 26.4.2017 GNC Long Close 28.4.2017 -4.39%
7 28.4.2017 CARA Long Close 1.5.2017 -3.23%
8 1.5.2017 AAOI Long Close 2.5.2017 +0.54%
9 3.5.2017 SCSS Long Close 9.5.2017 -1.71%
10 4.5.2017 CRZO Short Close 5.5.2017 +0.30%
11 8.5.2017 WTW Long Open   +3.20%
12            
13            
14            
15            
16            
17            
18            

 

Today’s Picks – Swing “New-York Strategy

No.1 –    UA

Company Name Under Armour,
Entry Point 20
Stop Area 19.10
1st Target 20.45
Swing Target 107.37
Avg. Volume 2.14M
Sector
Consumer Goods | Textile – Apparel Clothing
Earning Date
Risk Rate Normal
Risk\Reward Ratio 4.95:1