February 1, 2018.

Stocks on Wall Street continued to rise yesterday, capping off a beautiful start to the year – with the best monthly performance on the S&P 500 since March 2016. In summary for the month of January, the Dow and the S&P 500 recorded gains of 5.6% and 5.8% respectively. The NASDAQ soared 7.3% on the month, its best monthly performance since October 2015.

The Federal Reserve has not had a substantial impact on the market of late, but yesterday, investors responded strongly to the Fed’s policy announcement. There was no surprise in that rates weren’t hiked, but the tone that the Fed employed was surprising, leading a number of computerized trading programs to engage in automatic selling. After panic surfaced to a certain degree and the daily low was broken down, buying programs went into motion and succeeded in bringing the market back a number of points into the green, where the market closed on the day.

The chaotic movement on the indexes was even more pronounced on the Dow Jones, which traded in the green all day long thanks to the stellar numbers of Boeing (BA), which soared almost 5% to the $354.37 level. At this price, Boeing is the stock that exerts the biggest influence on the Dow Jones. The blue chip index is price-weighted. In other words, individual stocks’ respective price level is the mechanism for calculating the index’s price level. The higher a stock’s price, the larger the weight it has on the index. Boeing, today, is the most expensive of the index’s 30 stocks, followed only by Goldman Sachs (GS), which ended yesterday at the $267.89 level, and MMM, which closed at $250.50.

Whether or not the Dow is the most reliable market gauge is another question. Even though a single stock can tip the index in either direction, the financial media likes the index and it receives extensive coverage.

Daily Summary: The Dow Jones rose 0.28%, the S&P 500 tacking on 0.12%. The NASDAQ ended lightly up by 0.05%.

The biggest risk as of now in the market is not bad earnings numbers but rather, the phenomenon of “selling the news.” Microsoft (MSFT) reported yesterday after closing; its stock, though, was already stretched on the charts after two-months of non-stop gains. Facebook (FB) as well, which reported solid numbers after closing, is stretched – and after rapidly plunging 5%, succeeded in recovering and ending late trading up 1.6%.

We’re going to see additional reports today, and the chances are good that we’ll see sharp movement in both directions given the current tenor of the market. The volatility is picking up a notch. I suspect that the large movement we saw yesterday as a result of the Fed is only a preview of what is yet to come.



Daily change

DJX 26,149 0.28% Up
SPX 2,824 0.05% Up
NASDAQ 7,411 0.12% Up


Thursday’s Hot Stocks:  FB, T, PYPL, EBAY, MSFT



Have a great trading day!

Economic Calendar


DAY TIME (EST) Event Forecast Impact
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
LL 27.27   GPOR


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 – SM

Company Name SM Energy
Entry Point 23.59
Stop Area 22.64
1st Target 24.30
Swing Target 28.20
Avg. Volume 3.84M
Sector Basic Materials | Independent Oil & Gas
Earning Date 21 Feb
Risk Rate Normal
Risk\Reward Ratio 4.85:1

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

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