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.

IndexLast

Daily change

DJX26,077(1.37%)Down
SPX2,822(1.09%)Down
NASDAQ7,402(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

 

DAYTIME (EST)EventForecastImpact
Tuesday9:00S&P Corelogic Case-Shiller0.6 %Medium
Tuesday10:00Consumer Confidence123.4High
Wednesday8:15ADP Employment Report195,000 High
Wednesday9:45Chicago PMI64.0 Medium
Wednesday10:00Pending Home Sales Index0.4 %Medium
Wednesday10:30Oil Inventories-1.1 M barrelsLow
Wednesday14:00FOMC Meeting Announcement1.375 %High
Thursday8:30Jobless Claims235 KMedium
Thursday9:45PMI Manufacturing Index55.5Medium
Thursday10:00ISM Mfg Index58.7High
Thursday10:00Construction Spending0.5 %Medium
Friday8:30Nonfarm Payrolls176,000High
Friday8:30Unemployment Rate4.1 %High
Friday8:30Average Hourly Earnings0.3%High
Friday10:00Consumer Sentiment95.0High
Friday10:00Factory Orders1.5 %Medium
 

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
PF63 NTCTBEN
PCG 41.61AMBAVMW
    X
    WBA

 

New York Strategy Swing

#DateStockLong\

Short

StatuesData CloseProfit\

Loss

13.11.2017AKAMLongClose8.11.2017+1.37%
210.11.2017JUNOLongClose14.11.2017+1.26%
316.11.2017FLRLongClose25.11.2017+2.16%
46.12.2017SPLKLongClose8.12.2017+1.51%
511.12.2017NKTRLongClose2.1.2017+4.57%
618.12.2017SYYLongClose19.12.2017+0.14%
73.1.2018VOYALongClose8.1.2017+0.67%
84.1.2018TERLongClose10.1.2017+0.45%
99.1.2018SCGLongClose10.1.2017-3.35%
1011.1.2018CREELongClose16.1.2018+1.84%
1111.1.2018CFLongClose16.1.2018+1.66%
1218.1.2018MARKLongClose22.1.2018-0.67%

  

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

No.1 – PUMP    

Company NameProPetro Holding
Entry Point19.54
Stop Area18.95
1st Target19.95
Swing Target22.88
Avg. Volume1.97M
SectorBasic Materials | Oil & Gas Equipment & Services
Earning Date7 Feb
Risk RateLow
Risk\Reward Ratio5.66:1

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