January 23, 2018.

Shutdown Averted, Market Soars!

The major indexes hit new highs yesterday, the U.S. Senate approving a procedural bill that paves the way to ending the Federal government’s shutdown. The S&P 500 was up 0.8%, led by energy and telecom service stocks. Only 2 of its 11 sectors ended down. The NASDAQ was up 1%, propelled by biotech stocks. The blue chip Dow was up 0.6%.

All-in-all, governmental shutdowns have little bite in terms of affecting stock prices. In the last 35 years, in 4 of the last 7 shutdowns the market fell on average by only 1%; it took less than 2-weeks to get back on track. With shutdowns having little impact on the market, the biggest risk now is geopolitical, Trump, yesterday, plopping on his first protectionary trade measure on solar panels.

One of the leaders in yesterday’s trading was Netflix (NFLX), which soared after its subscriber growth beat out its own forecasts as well as the market’s. The company’s market cap hit $100 billion. Netflix beat revenue expectations, earnings coming out as expected. Net subscriptions rose 18% over the same period last year. Netflix’s international growth strategy seemed to pay off big time, the company tacking on 8.3 million new subscribers. The company also managed to hike rates, winning on all fronts.

Apple (AAPL) fell 0.8%, on new concerns about iPhone X sales. Celgene (CELG) rose 0.3% after the release that it planned on buying JUNO. JUNO rose 27%. Xerox (XRX) rose 2.6% on news that its biggest and third biggest investors have joined forces in creating an alliance to pressure the printing and copying giant to explore a sale.

Economic Diary: Today’s Economic Diary will be very light. Continue to follow movement in the U.S. 10-year T-bond, and keep your eyes peeled on movement in Bitcoin after Goldman’s downgrade yesterday.

That notwithstanding, Bitcoin – like cats – seem to have 9 lives, so don’t be so quick to eulogize it. Bubble or not – and from Warren Buffett to Jamie Dimon the greatest business minds out there have predicted its demise, the cryptocurrency, more than once has caught us off guard with remarkable comebacks after suffering large losses.

Goldman Sachs warned its investors about the perils of Bitcoin, the world’s largest digital currency, writing that there’s no doubt that it has been pushed “into bubble territory.” Goldman also noted that its “meteoric rise in a short time has dwarfed the rise seen during the dot-com bubble.” It would seem that Bitcoin is on thin ice, Goldman analysts noting,  “We also believe that cryptocurrencies have moved beyond bubble levels in financial markets, and even beyond the levels seen during the Dutch ‘tulipmania’ between 1634 and early 1637.” The Securities and Exchange Commission (SEC) has referenced the extreme volatility in the cryptocurrency – and its lack of regulation – as the reason it’s unlikely to approve an ETF on the “currency” any time soon. Writing to clients, Goldman observed, “While we do not know if bitcoin or any other cryptocurrency will double or triple from prevailing prices, we do not believe that these cryptocurrencies will retain their value in the long run in their current incarnation.”

Index Last

Daily change

DJX 26,214.60 +142.88 (0.55%)
SPX 2,832.97 +22.67 (0.81%)
NASDAQ 7,408.03 +71.65 (0.98%)

Tuesday’s Hot Stocks: ADBE, AMTD, RMD, NFLX

Have a great trading day!


Economic Calendar


DAY TIME (EST) Event Forecast Impact
Wednesday 9:00 FHFA House Price Index 0.5 % Medium
Wednesday 10:00 Existing Home Sales 5.750 M Medium
Wednesday 10:30 Oil Inventories -6.9 M barrels Low
Thursday 8:30 International Trade in Goods
$-68.9 B Medium
Thursday 8:30 Jobless Claims 240 K Medium
Thursday 10:00 Wholesale Inventories 683 K Medium
Thursday 10:00 New Home Sales 0.5 % Medium
Friday 8:30 Durable Goods Orders 0.8 % Medium
Friday 8:30 GDP 2.9 % High




Earning Calendar


Symbol Company AM/PM Day
EDU New Oriental Education & Technology Group Inc. AM Tuesday
TRV The Travelers Companies, Inc. AM Tuesday
STT State Street Corporation AM Tuesday
KMB Kimberly-Clark Corporation AM Tuesday
VZ Verizon Communications Inc. AM Tuesday
PG The Procter & Gamble Company AM Tuesday
JNJ Johnson & Johnson AM Tuesday
TXN Texas Instruments Incorporated PM Tuesday
COF Capital One Financial Corporation PM Tuesday
UAL United Continental Holdings, Inc. PM Tuesday
GD General Dynamics Corporation AM Wednesday
SWK Stanley Black & Decker, Inc. AM Wednesday
RCL Royal Caribbean Cruises Ltd. AM Wednesday
GE General Electric Company AM Wednesday
CMCSA Comcast Corporation AM Wednesday
ABT Abbott Laboratories AM Wednesday
UTX United Technologies Corporation AM Wednesday
LVS Las Vegas Sands Corp. PM Wednesday
LRCX Lam Research Corporation PM Wednesday
CCI Crown Castle International Corp. (REIT) PM Wednesday
F Ford Motor Company PM Wednesday
WHR Whirlpool Corporation PM Wednesday
XLNX Xilinx, Inc. PM Wednesday
URI United Rentals, Inc. PM Wednesday
MKC McCormick & Company, Incorporated AM Thursday
NOC Northrop Grumman Corporation AM Thursday
RTN Raytheon Company AM Thursday
LUV Southwest Airlines Co. AM Thursday
AAL American Airlines Group Inc. AM Thursday
CELG Celgene Corporation AM Thursday
UNP Union Pacific Corporation AM Thursday
CAT Caterpillar Inc. AM Thursday
MMM 3M Company AM Thursday
BIIB Biogen Inc. AM Thursday
INTC Intel Corporation PM Thursday
SBUX Starbucks Corporation PM Thursday
WDC Western Digital Corporation PM Thursday
KLAC KLA-Tencor Corporation PM Thursday
MXIM Maxim Integrated Products, Inc. PM Thursday
CL Colgate-Palmolive Company AM Friday
ABBV AbbVie Inc. AM Friday
HON Honeywell International Inc. AM Friday



New York Strategy Swing

# Date Stock Long\


Statues Data Close Profit\


1 3.11.2017 AKAM Long Close 8.11.2017 +1.37%
2 10.11.2017 JUNO Long Close 14.11.2017 +1.26%
3 16.11.2017 FLR Long Close 25.11.2017 +2.16%
4 6.12.2017 SPLK Long Close 8.12.2017 +1.51%
5 11.12.2017 NKTR Long Close 2.1.2017 +4.57%
6 18.12.2017 SYY Long Close 19.12.2017 +0.14%
7 3.1.2018 VOYA Long Close 8.1.2017 +0.67%
8 4.1.2018 TER Long Close 10.1.2017 +0.45%
9 9.1.2018 SCG Long Close 10.1.2017 -3.35%
10 11.1.2018 CREE Long Close 16.1.2018 +1.84%
11 11.1.2018 CF Long Close 16.1.2018 +1.66%
12 18.1.2018 MARK Long Open   +0.67%