Picks of the Day January 9, 2018.

Why 2018 Could be Another Record Year…

The S&P 500 succeeded in extending its 2018 winning streak with another victory lap yesterday! The pace of the gains did slow to a crawl, health and banking stocks weighing on market movement, investors not waiting for the opening kickoff of the Q4 2017 earnings season which will open up this coming Friday with banks’ numbers.

Yesterday, the health sector recorded the worst performance on the S&P 500, and investors are hesitant to pour money into banking firms before they release their results at the end of the week.

Daily Summary: The Dow Jones shed 0.5% of its value. The S&P 500 tacked on 0.17%, the NASDAQ rising 0.29%.

The 3 large indexes on Wall Street kicked off 2018 with the strongest four initial trading days in a decade. For the Dow Jones, it was the strongest opening since 2003, for the S&P 500 and the NASDAQ, it was their strongest opening since 2006.

Historically, the first 5 trading days of the year are likely to serve as a good indicator of the direction of the entire trading year. According to Jeff Hirsch, the editor of the universally known book of statistics, The Stock Trader’s Almanac, that means that there’s an 83.7% chance that stocks will rise finish up on the year. That’s wonderful news for Wall Street, especially because historically stocks perform less well in years when mid-term congressional elections take place. Based on the above indicator, in the event the stock market rises in the first 5 trading days of the year, the chances rise that the stock market will end positively for the year. More than that, though, the “first 5 days indicator” also foreshadows significant gains on the S&P 500, i.e. yearly gains of 13.9% if the first 5 days of the year trade up, compared to average annual gains of 9.2% for the years 1950-2017.

One of the stocks that stood out in yesterday’s trading was Caterpillar (CAT), which rose 2.5% to the $166.03 level, slightly beneath the historic high it achieved during the trading day after J.P. Morgan raised its price target on the stock in light of tax reform. Trump’s bill is likely to help the infrastructure sector’s business cycle in North America in 2018.

Kohl’s (KSS) soared 4.7% after the department store chain reported stronger than expected sales in its stores over the holiday season, compared to its competitors.

GoPro (GPRO) continues to lose altitude. The stock tumbled 12.8% yesterday to a low, at the $6.56 level, after the company announced that it was open to be taking over but isn’t chasing buyout offers. At an earlier point in the day, the stock had already shed one-third of its value, dipping to $5.04, after reporting initial Q4 revenue results which came out significantly beneath the consensus; the company also announced that it had decided to exit the drone market.

On the S&P 500, 98 stocks rose to new 52-week highs, not a single stock dipping to a new yearly low; on the NASDAQ, 124 stocks recorded new 52-week highs, 26 falling to new yearly lows.

About 6.36 billion shares changed hands on U.S. exchanges, compared to the 6.28 billion average over the last 20 trading days.

Tuesday: The trading day is expected to remain relatively quiet in light of the fact that today’s economic diary will be meager. Before opening, the NFIB small business optimism index will be released. During trading, the JOLTS employment figures will be released. JOLTS numbers are the Fed’s preferred metric for assessing the employment state.

Investors are continuing to wait in anticipation for the earnings season which will reach a critical mass on Friday. That being the case, investors prefer to not become fully committed too early to any large positions.

The large, annual tech conference, the Consumer Electronics Show (CES), opened up yesterday in Las Vegas. During the conference, leading tech companies showcase their latest innovations. Tech stocks are likely to continue to respond in kind today, commanding investors’ attention.

Index

Last

Daily change

DJX25,283(0.05%)Down
SPX2,7480.17%Up
NASDAQ7,1570.29%Up

 

 

IPOs: None

Hot Stocks: URBN, STX, SHLM

 

Economic Calendar

 

DAYTIME (EST)EventForecastImpact
Tuesday6:00NFIB Small Business Optimism Index107.9 Medium
Tuesday10:00JOLTS6.038 MMedium
Wednesday8:30Import and Export Prices0.4 %Medium
Wednesday10:00Wholesale Trade0.7 %Medium
Wednesday10:30Oil Inventories-7.4 M barrelsLow
Thursday8:30Jobless Claims245 KMedium
Thursday8:30PPI-FD0.2 %Medium
Friday8:30Consumer Price Index0.1 %Medium
Friday8:30Retail Sales0.5 %Medium
Friday10:00Business Inventories0.3 %Medium
 

 

Earning Calendar

 

SymbolCompanyAM/PMDay
HELEHelen of Troy LimitedAMMonday
KBKB Financial Group Inc.AMMonday
SIGSignet Jewelers LimitedAMWednesday
LENLennar CorporationAMWednesday
KBHKB HomePMWednesday
PRGSProgress Software CorporationPMWednesday
DALDelta Air Lines, Inc.AMThursday
PNCThe PNC Financial Services Group, Inc.AMFriday
BLKBlackRock, Inc.AMFriday
WFCWells Fargo & CompanyAMFriday
JPMJPMorgan Chase & Co.AMFriday
INFYInfosys LimitedAMFriday

 

Today’s Picks – Day Trading!

SymbolBreakoutBreakdownMomentumMomentum
PYPL79.39 WTWICPT
CBI18.72 WUBAACAD
MTDR32.35 TSLAEXEL
W84.19 DNOWPLAY
CRM109.19   
 

  

 

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%
84.1.2018TERLongOpen +2.36%

 

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

 

No.1 – CENX

Company NameCentury Aluminum Company
Entry Point20
Stop Area19.30
1st Target20.45
Swing Target21.78
Avg. Volume2.30M
SectorBasic Materials | Aluminum
Earning Date25 Jan
Risk RateNormal
Risk\Reward Ratio2.54:1

 

No.2 – SCG

Company NameSCANA Corporation
Entry Point45.60
Stop Area44.40
1st Target46.20
Swing Target49.40
Avg. Volume2.86M
SectorUtilities | Electric Utilities
Earning Date25 Jan
Risk RateNormal
Risk\Reward Ratio3.17:1