January 24, 2018.

S&P 500 on a Tear!

The S&P 500 has reached another record, recording the greatest number of record highs ever for the month of January. The S&P 500 has traded up in 12 of this year’s 15 trading sessions. The market has ridden the wave of stronger domestic and international growth, tax reform, and solid corporate earnings.

Ray Dalio, the founder of Bridgewater Associates, the largest hedge fund in the world with $150 billion in assets, noted, “We are in this Goldilocks period right now. Inflation isn’t a problem. Growth is good, everything is pretty good with a big jolt of stimulation coming from changes in tax laws.” In his view, we’re going to see a “blowoff rally” – or a melt-up – that will take all 3 major indexes to new heights. “If you’re holding cash,” he noted, “you’re going to feel pretty stupid.”

Valero Energy rose in yesterday’s extended session, the largest refiner in the world approving a $2.5 billion stock buyback program, the company’s quarterly dividend raised 10 cents to 80 cents. Up 7% already in 2018, the stock rose 1% yesterday in afterhours trading.

Before opening today, General Electric (GE) will be reporting its quarterly numbers. Last time GE reported – despite the negative earnings surprise – the company’s stock managed to end higher on the day. Despite that bounce, the stock fell for 9 consecutive sessions thereafter. With the conglomerate trying to remake itself, the new CEO, Flannery, announced its transformation plan in mid-November. Players weren’t amused, the stock taking a further hit after word got out of a gaping loss from the company’s legacy insurance business. GE soared 4.5% yesterday. The stock, though, has fallen 43% over the past 12 months, and 24% over the past 3 months.

Ford will be reporting today. The stock has seen both lows and weak guidance of late – and more than anything, it’s played second fiddle to GM, which received two thumbs up after selling its European business and taking the helm in developing electric cars. What is going Ford’s way is its best-selling pickup trucks and SUVs.

Intel (INTC) will be reporting on Thursday after closing. The company has faced headwinds after a flaw was found in its microchips, making them vulnerable to hackers. Linux creator, Linus Torvalds, recently referred to the patches created by Intel as “complete and utter garbage,” placing the company even more in the hot seat. The patches could affect data center power users’ performance, which constitutes Intel’s largest area of expected growth, Wall Street expecting a 9% revenue increase to $5.09 billion for Q4.

Natural gas prices should also be watched today, soaring after forecasts for frigid weather in swaths of the U.S. Futures on the commodity have risen, February natural gas up 4%.

One of the biggest risk factors for the market now is the fate of international trade in a protectionist Trump era. With the tariffs recently placed on washing machines and solar panels, many are worried.

Senior international trade advisor at the law firm Miller & Chevalier, Welles Orr, noted: “I think it plays in nicely to the administration’s plan on being tough on enforcing trade rules and fighting out against the Chinese and other Asian countries that are clearly trying to circumvent the normal trade rules.” A decision to plop tariffs on aluminum and steel is expected soon. Orr added, “This all fits with the administration’s play to be tough trade negotiators. This comes in nicely just before or during the sixth round of negotiations on NAFTA. The administration shows its muscle. It’s not backing down from its campaign pledge.”

The operative question is whether NAFTA will be terminated. And what remains to be seen vis a vis the tariffs plopped on LG and Samsung, is the extent to which the new plants they’re opening in the U.S. will mitigate the fallout. Consumers likewise would be hurt by the price increases, Goldman noting that the cost for large imported residential washers could rise from 8% to 20% in the first year the tariff goes into effect.



Daily change

DJX 26,210.81 -3.79 (-0.01%)
SPX 2,839.13 +6.16 (0.22%)
NASDAQ 7,460.29 +52.26 (0.71%)

Today’s Economic Calendar: The FHFA House Price Index will be released at 9:00, followed by existing home sales at 10:00, and then oil inventories at 10:30.

Wednesday’s Hot Stocks: COF, CNR, TXN, UAL, VLO, GE


                                              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%