January 30,2018.

Monday was the first real day of declines for 2018. And yesterday, was the second! Two straight days of losses, a development that we hadn’t seen since December 19-20. If we dig a little deeper, it was the first time since November 1st -2nd that we saw two straight days of losses of over 0.5% per day. Yesterday, it was also the first time that the S&P 500 recorded a decline of over 1% since August 17, 2017.

In the meantime, the VIX rose yesterday by 11.4% to the 15.42 point level; something very interesting is happening on the VIX. Up until last Friday, the market had risen on a beeline. But, very interestingly, and in atypical fashion, the VIX also rose. In effect, since the beginning of the year, the VIX recorded gains on 13 of 20 trading days.

So, why exactly did we see a selloff yesterday right in the midst of what would seem like a stellar earnings season?!

Some would point to the rise in bond yields but the answer is much more elementary. Isaac Newton taught us that what goes up must eventually go down. And if we’re already talking about Newton, go no further than the stock of Apple (AAPL) which was beaten to a pulp because of concerns about demand for the iPhone X. Apple will be reporting tomorrow, investors far and wide looking for clarification about the reported downtick in sales of the newest iPhone model. Apple also responded yesterday to news that the Justice Dept. and the SEC were investigating the company’s announcement that it had slowed down older iPhone models. Apple ended off 0.6%.

Daily Summary: The Dow Jones fell 1.37%, the S&P 500 shedding 1.09%, the NASDAQ retreating 0.86%.

One of the stocks that stood out in yesterday’s trading was MetLife (MET), which fell 8.6%, recording the worst performance on the S&P 500, after the news release that the SEC was investigating the insurance company for not making adequate pension payments to cover insurees who had relocated or switched jobs.

Volumes yesterday came to 8.1 billion shares on U.S. exchanges, compared to the 7.1 billion average over the last 20 trading days.

Wednesday: The biggest enemy for the stock market this week was the bond market and the uptick in yields there. There are now three events that could push interest rates higher over the next 24 hours.

First-off, Donald Trump’s State of the Union Address. Secondly, the announcement on the part of the U.S. Treasury about governmental bond issues and their respective size, and lastly, the Fed meeting, which ends today at 14:00 with a policy announcement.

One of Donald Trump’s plans for funding the large infrastructure package he promised was employing governmental bonds. In effect, the U.S. government is expected to double its bond issues this year to almost $1 trillion – and that’s the factor weighing on bond prices, which move inversely to yields.

Index Last

Daily change

DJX 26,077 (1.37%) Down
SPX 2,822 (1.09%) Down
NASDAQ 7,402 (0.86%) Down

Wednesday’s Hot Stocks: AMD, EA, ILMN, JNPR, SYK, BA, CHKP, WRK, XRX

IPOs: None

Have a great trading day!


Economic Calendar


DAY TIME (EST) Event Forecast Impact
Tuesday 9:00 S&P Corelogic Case-Shiller 0.6 % Medium
Tuesday 10:00 Consumer Confidence 123.4 High
Wednesday 8:15 ADP Employment Report 195,000  High
Wednesday 9:45 Chicago PMI 64.0  Medium
Wednesday 10:00 Pending Home Sales Index 0.4 % Medium
Wednesday 10:30 Oil Inventories -1.1 M barrels Low
Wednesday 14:00 FOMC Meeting Announcement 1.375 % High
Thursday 8:30 Jobless Claims 235 K Medium
Thursday 9:45 PMI Manufacturing Index 55.5 Medium
Thursday 10:00 ISM Mfg Index 58.7 High
Thursday 10:00 Construction Spending 0.5 % Medium
Friday 8:30 Nonfarm Payrolls 176,000 High
Friday 8:30 Unemployment Rate 4.1 % High
Friday 8:30 Average Hourly Earnings 0.3% High
Friday 10:00 Consumer Sentiment 95.0 High
Friday 10:00 Factory Orders 1.5 % Medium


Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
PCG   41.61 AMBA VMW


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 Close 22.1.2018 -0.67%


Today’s Picks – Swing “New-York Strategy”

No.1 – PUMP    

Company Name ProPetro Holding
Entry Point 19.54
Stop Area 18.95
1st Target 19.95
Swing Target 22.88
Avg. Volume 1.97M
Sector Basic Materials | Oil & Gas Equipment & Services
Earning Date 7 Feb
Risk Rate Low
Risk\Reward Ratio 5.66:1

Risk Rates: Normal – Regular size, High –Consider reducing size, Low – Consider increasing size