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.

IndexLast

Daily change

DJX25,7091.58%Up
SPX2,7801.18%Up
NASDAQ7,4211.15%Up

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

IPOs: None

Have a great trading day!

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Monday10:00New Home Sales600 KMedium
Tuesday8:30Durable Goods Orders-2.0 %Medium
Tuesday8:30Wholesale Inventories0.3 %Medium
Tuesday9:00S&P Corelogic Case-Shiller HPI0.7 %Medium
Tuesday9:00FHFA House Price Index0.5 %Medium
Tuesday10:00Consumer Confidence126.0 High
Tuesday10:00Jerome Powell SpeaksHigh
Wednesday8:30GDP2.5 %High
Wednesday9:45Chicago PMI65.0Medium
Wednesday10:00Pending Home Sales Index0.5 %Medium
Wednesday10:30Oil Inventories-1.6 M barrelsLow
Thursday8:30Jobless Claims230 KMedium
Thursday8:30Personal Income and Outlays0.3 %Medium
Thursday9:45PMI Manufacturing Index55.7Medium
Thursday10:00ISM Mfg Index58.6High
Thursday10:00Construction Spending0.3 %Medium
Thursday10:00Jerome Powell SpeaksHigh
Thursday11:00William Dudley SpeaksMedium
Friday10:00Consumer Sentiment99.5High


 

Earning Calendar

 

SymbolCompanyAM/PMDay
PANWPalo Alto Networks, Inc.PMMonday
SBACSBA Communications CorporationPMMonday
BRK-ABerkshire Hathaway Inc.PMMonday
CLVSClovis Oncology, Inc.PMMonday
IONSIonis Pharmaceuticals, Inc.AMTuesday
EVEaton Vance Corp.AMTuesday
DISCADiscovery Communications, Inc.AMTuesday
MMacy’s, Inc.AMTuesday
LAMRLamar Advertising Company (REIT)AMTuesday
TOLToll Brothers, Inc.AMTuesday
SERVServiceMaster Global Holdings, Inc.AMTuesday
AZOAutoZone, Inc.AMTuesday
AMTAmerican Tower Corporation (REIT)AMTuesday
PRGOPerrigo Company plcAMTuesday
ALBAlbemarle CorporationPMTuesday
SQSquare, Inc.PMTuesday
EOGEOG Resources, Inc.PMTuesday
WDAYWorkday, Inc.PMTuesday
ESRXExpress Scripts Holding CompanyPMTuesday
PCLNBooking Holdings Inc.PMTuesday
BUFFBlue Buffalo Pet Products, Inc.PMTuesday
JAZZJazz Pharmaceuticals Public Limited CompanyPMTuesday
VEEVVeeva Systems Inc.PMTuesday
DXCMDexCom, Inc.PMTuesday
ACADACADIA Pharmaceuticals Inc.PMTuesday
EVHCEnvision Healthcare CorporationPMTuesday
WTWWeight Watchers International, Inc.PMTuesday
TSROTesaro, Inc.PMTuesday
RRCRange Resources CorporationPMTuesday
ETSYEtsy, Inc.PMTuesday
TDOCTeladoc, Inc.PMTuesday
HZNPHorizon Pharma Public Limited CompanyAMWednesday
DYDycom Industries, Inc.AMWednesday
VRXValeant Pharmaceuticals International, Inc.AMWednesday
LOWLowe’s Companies, Inc.AMWednesday
TJXThe TJX Companies, Inc.AMWednesday
ADIAnalog Devices, Inc.AMWednesday
MYLMylan N.V.PMWednesday
MNSTMonster Beverage CorporationPMWednesday
LBL Brands, Inc.PMWednesday
CRMSalesforce.com, inc.PMWednesday
BLUEbluebird bio, Inc.PMWednesday
BOXBox, Inc.PMWednesday
BIDSotheby’sAMThursday
KSSKohl’s CorporationAMThursday
BBYBest Buy Co., Inc.AMThursday
VMWVMware, Inc.PMThursday
NKTRNektar TherapeuticsPMThursday
GPSThe Gap, Inc.PMThursday
SPLKSplunk Inc.PMThursday
JWNNordstrom, Inc.PMThursday
NTNXNutanix, Inc.PMThursday
SRPTSarepta Therapeutics, Inc.PMThursday
PSTGPure Storage, Inc.PMThursday
FLFoot Locker, Inc.AMFriday
JDJD.com, Inc.AMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
AMAG20.00 FSLRSQM
ACAD33  ALB
FOXA39.14   
BBT56   
AKAM69.56   
VCL8.25   

 

 

New York Strategy Swing

#DateStockLong\

Short

StatusData CloseProfit\

Loss

16.12.2017SPLKLongClose8.12.2017+1.51%
211.12.2017NKTRLongClose2.1.2017+4.57%
318.12.2017SYYLongClose19.12.2017+0.14%
43.1.2018VOYALongClose8.1.2017+0.67%
54.1.2018TERLongClose10.1.2017+0.45%
69.1.2018SCGLongClose10.1.2017-3.35%
711.1.2018CREELongClose16.1.2018+1.84%
811.1.2018CFLongClose16.1.2018+1.66%
918.1.2018MARKLongClose22.1.2018-0.67%
101.2.2018SMLongClose2.2.2018-1.06%
1114.2.2018HOLXShortClose15.2.2018-2.7%
1226.2.2018FOSLLongOpen +0.36%