February 27, 2018.

Stocks rose to a 3-week high on Monday, and in doing so, succeeded in recovering most of the losses it suffered in the selloff earlier this month. The decline in bond yields assuaged investor concerns about a rate hike, re-focusing attention on economic growth. The figures in financial reports continue to boast strength and investors believe in the global economy.

All 3 major indexes rose over 1% yesterday. The S&P 500 is now trading just 3.2% from the all-time high it achieved on January 26th. The VIX index has fallen slightly – to the 15.8 point level.

The next level that stands to be tested on the S&P 500 is the resistance boundary spanning 2,790 and 2,810 points. This is a resistance level that is likely to cause a pause to some degree. It’s very important to see how the market digests prices at these level in order to understand whether it can pave the way to new 2018 highs. The rally needs to expand and include additional sectors in order to reach new highs. Most of the latest bounce relied on the large tech stocks and banking stocks; energy, biotech and small-cap stocks have lagged behind.

Daily Summary: The Dow Jones rose 1.58%, the S&P 500 tacking on 1.18% and the NASDAQ advancing 1.15%.

One of the stocks that stood out yesterday was Qualcomm (QCOM), which soared 5.8% after the chipmaker, Broadcom (AVGO) prompted the company to enter into negotiations with it after having offered it $117 billion in a buyout bid earlier this month.

Berkshire Hathaway (BRK.A) surged 4% after Warren Buffett stated that his investment conglomerate which now has a $116 billion pile of cash, would be more inclined to repurchase its stock rather than fork out dividends.

On the S&P 500, 31 stocks rose to new 52-week highs, just one dipping to a new yearly low; on the NASDAQ, 105 stocks recorded new 52-week highs, 36 falling to new yearly lows.

The trading volume on U.S. exchanges came to 6.3 billion shares, significantly beneath the 8.36 billion average over the last 20 trading days.

Tuesday: Investors today will carefully follow the speech of Jerome Powell, the new Fed Chair, who will be facing a battery of questions in his first big appearance before Congress after having replaced Janet Yellen at the beginning of the month. What Powell says in the Fed Chairman’s semiannual economic address is likely to determine whether stocks will continue to rally and break up new highs. Powell is not expected to create any market shocks, but traders will parse out how he responds to questions from members of Congress and how determined he is to hike rates. His speech today will begin at 10:00 N.Y. time. Powell is expected to speak, again, to the Senate on Thursday.

Powell is not an economist and his reputation is as one who simply put, speaks to the point about Fed policy. He is likely to be an excellent rhetorician who can calm markets, and furthermore, give investors a clear understanding as to the direction he is steering the Fed in.

Investors’ concerns, though, are about what Powell has to say about inflation. In the event the Fed expects an uptick in inflation, it’s certainly possible that Powell will see in that a reason to hike rates more than the current market consensus of three 2018 hikes. The next Fed meeting will be held on March 21st, when the Fed is expected to hike rates for the first time this year.

Stocks are expected to be “well-behaved,” as long as bond yields don’t suddenly soar, a development likely to play out if Powell sounds too determined to hike rates.

After Powell’s speech this morning, two former Fed Chairpersons are expected to be in the spotlight. Former Fed Chair, Ben Bernanke will be interviewing the most recent Fed Chair, Janet Yellen, in an event taking place at 14:00.

Tuesday’s economic reports will include durable goods orders at 8:30. The Case-Shiller Home Price Index will be released at 9:00, the Consumer Confidence Index coming out at 10:00.

The key earnings reports before opening include: M, TOL, CAMP, and SEA. After closing, be primed for the numbers of ETSY, SQ, ESRX, WDAY, HTZ, and WTW.

Index Last

Daily change

DJX 25,709 1.58% Up
SPX 2,780 1.18% Up
NASDAQ 7,421 1.15% Up

Tuesday’s Hot Stocks: M, TOL, CAMP, SEAS. FIT, NTRI, AKRX, PANW, THC

IPOs: None

Have a great trading day!


Economic Calendar


DAY TIME (EST) Event Forecast Impact
Monday 10:00 New Home Sales 600 K Medium
Tuesday 8:30 Durable Goods Orders -2.0 % Medium
Tuesday 8:30 Wholesale Inventories 0.3 % Medium
Tuesday 9:00 S&P Corelogic Case-Shiller HPI 0.7 % Medium
Tuesday 9:00 FHFA House Price Index 0.5 % Medium
Tuesday 10:00 Consumer Confidence 126.0  High
Tuesday 10:00 Jerome Powell Speaks High
Wednesday 8:30 GDP 2.5 % High
Wednesday 9:45 Chicago PMI 65.0 Medium
Wednesday 10:00 Pending Home Sales Index 0.5 % Medium
Wednesday 10:30 Oil Inventories -1.6 M barrels Low
Thursday 8:30 Jobless Claims 230 K Medium
Thursday 8:30 Personal Income and Outlays 0.3 % Medium
Thursday 9:45 PMI Manufacturing Index 55.7 Medium
Thursday 10:00 ISM Mfg Index 58.6 High
Thursday 10:00 Construction Spending 0.3 % Medium
Thursday 10:00 Jerome Powell Speaks High
Thursday 11:00 William Dudley Speaks Medium
Friday 10:00 Consumer Sentiment 99.5 High


Earning Calendar


Symbol Company AM/PM Day
PANW Palo Alto Networks, Inc. PM Monday
SBAC SBA Communications Corporation PM Monday
BRK-A Berkshire Hathaway Inc. PM Monday
CLVS Clovis Oncology, Inc. PM Monday
IONS Ionis Pharmaceuticals, Inc. AM Tuesday
EV Eaton Vance Corp. AM Tuesday
DISCA Discovery Communications, Inc. AM Tuesday
M Macy’s, Inc. AM Tuesday
LAMR Lamar Advertising Company (REIT) AM Tuesday
TOL Toll Brothers, Inc. AM Tuesday
SERV ServiceMaster Global Holdings, Inc. AM Tuesday
AZO AutoZone, Inc. AM Tuesday
AMT American Tower Corporation (REIT) AM Tuesday
PRGO Perrigo Company plc AM Tuesday
ALB Albemarle Corporation PM Tuesday
SQ Square, Inc. PM Tuesday
EOG EOG Resources, Inc. PM Tuesday
WDAY Workday, Inc. PM Tuesday
ESRX Express Scripts Holding Company PM Tuesday
PCLN Booking Holdings Inc. PM Tuesday
BUFF Blue Buffalo Pet Products, Inc. PM Tuesday
JAZZ Jazz Pharmaceuticals Public Limited Company PM Tuesday
VEEV Veeva Systems Inc. PM Tuesday
DXCM DexCom, Inc. PM Tuesday
ACAD ACADIA Pharmaceuticals Inc. PM Tuesday
EVHC Envision Healthcare Corporation PM Tuesday
WTW Weight Watchers International, Inc. PM Tuesday
TSRO Tesaro, Inc. PM Tuesday
RRC Range Resources Corporation PM Tuesday
ETSY Etsy, Inc. PM Tuesday
TDOC Teladoc, Inc. PM Tuesday
HZNP Horizon Pharma Public Limited Company AM Wednesday
DY Dycom Industries, Inc. AM Wednesday
VRX Valeant Pharmaceuticals International, Inc. AM Wednesday
LOW Lowe’s Companies, Inc. AM Wednesday
TJX The TJX Companies, Inc. AM Wednesday
ADI Analog Devices, Inc. AM Wednesday
MYL Mylan N.V. PM Wednesday
MNST Monster Beverage Corporation PM Wednesday
LB L Brands, Inc. PM Wednesday
CRM Salesforce.com, inc. PM Wednesday
BLUE bluebird bio, Inc. PM Wednesday
BOX Box, Inc. PM Wednesday
BID Sotheby’s AM Thursday
KSS Kohl’s Corporation AM Thursday
BBY Best Buy Co., Inc. AM Thursday
VMW VMware, Inc. PM Thursday
NKTR Nektar Therapeutics PM Thursday
GPS The Gap, Inc. PM Thursday
SPLK Splunk Inc. PM Thursday
JWN Nordstrom, Inc. PM Thursday
NTNX Nutanix, Inc. PM Thursday
SRPT Sarepta Therapeutics, Inc. PM Thursday
PSTG Pure Storage, Inc. PM Thursday
FL Foot Locker, Inc. AM Friday
JD JD.com, Inc. AM Friday


Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum
ACAD 33     ALB
FOXA 39.14      
BBT 56      
AKAM 69.56      
VCL 8.25      



New York Strategy Swing

# Date Stock Long\


Status Data Close Profit\


1 6.12.2017 SPLK Long Close 8.12.2017 +1.51%
2 11.12.2017 NKTR Long Close 2.1.2017 +4.57%
3 18.12.2017 SYY Long Close 19.12.2017 +0.14%
4 3.1.2018 VOYA Long Close 8.1.2017 +0.67%
5 4.1.2018 TER Long Close 10.1.2017 +0.45%
6 9.1.2018 SCG Long Close 10.1.2017 -3.35%
7 11.1.2018 CREE Long Close 16.1.2018 +1.84%
8 11.1.2018 CF Long Close 16.1.2018 +1.66%
9 18.1.2018 MARK Long Close 22.1.2018 -0.67%
10 1.2.2018 SM Long Close 2.2.2018 -1.06%
11 14.2.2018 HOLX Short Close 15.2.2018 -2.7%
12 26.2.2018 FOSL Long Open   +0.36%