Magical Stardust Enshrouds Wall Street by Stock Maxim Fund management

Magical Stardust Enshrouds Wall Street by Stock Maxim Fund management

Magical Stardust Enshrouds Wall Street

Index Last Daily change
DJX 23,591 0.69% Up
SPX 2,599 0.65% Up
Nasdaq 6,862 1.06% Up

By: Robinson Garnier, Senior Fund Manager at Stockmaxim

The conditions were ripe for holiday trading yesterday but very few expected the movement to be as strong as it was. All of the major indexes jumped to new historic highs, the number of stocks trading at new highs jumped past 500 but was perhaps clearest was the pockets of momentum.

On my trading screen, I had some 25 stocks that had jumped over 10%, and a higher number that jumped 5%. It was almost as if fairies had sprinkled stardust on the markets, momentum sweeping into the holiday season. Stocks like OSTK, FENG, RIOT, and GWPH stood out above all others, but strength could be seen through the entire breadth of trading screens.

Bears are doing the best they can, saying that yesterday’s “exaggerated” movement was an indicator of a reversal trend; bears sense excess movement in a lot of places, but all we can tell them is that any attempt to time the peak in a market like this is very very hard.

Thanksgiving week tends to be positive on Wall Street. On average, since 1945, the S&P 500 has recorded gains of 0.6% on the week. In effect, precisely in years in which the stock market has already traded up at least 10% on the year come Thanksgiving, the week tends to be stronger, with average gains of almost 0.8%.

Other statistical studies found that when the market closed strongly on the Tuesday before Thanksgiving, there’s a smaller change of positive movement in the rest of the week. This is a phenomenon that has been seen of late, the theory behind it being that expectations are too high, causing profit taking.

With yesterday’s close, the momentum was very strong, boding well for today. This is a market in which it’s very easy to feel as if you’ve been left behind and those very same frustrated investors will be more than ready to see whatever money they can to work!

The most difficult challenge in a market like this is to cling to the momentum. The biggest mistake that traders tend to make is to sell too soon. Even worse, there are traders who are peeved that the missed out on the gains, who are now trying to time when the market’s going to peak. Ride the momentum, ride the wave until the end. You can make enough profit at this stage of the game to be able to cope with the losses to some extent when the market sees a big turn for the worse.

Wednesday’s Hot Stocks: GES ,HPE ,AXTA ,GME ,CRM ,DE ,CPRT

IPOs: None

DAY TIME (EST) Event Forecast Impact
Tuesday 10:00 Existing Home Sales 5.440 M Medium
Tuesday 18:00 Janet Yellen Speaks Medium
Wednesday 8:30 Durable Goods Orders 0.4 % Medium
Wednesday 8:30 Jobless Claims 240 K Medium
Wednesday 10:00 Consumer Sentiment 26.0 High
Wednesday 10:30 Oil Inventories Low
Thursday Markets Closed Thanks Giving
Friday 9:45 PMI Composite Flash 55.4 Medium
Friday 13:00 Early Close
Symbol Company AM/PM Day
BITA Bitauto Holdings Limited AM Monday
ZTO ZTO Express (Cayman) Inc. PM Monday
PANW Palo Alto Networks, Inc. PM Monday
A Agilent Technologies, Inc. PM Monday
INTU Intuit Inc. PM Monday
NOAH Noah Holdings Limited PM Monday
BRCD Brocade Communications Systems, Inc. PM Monday
URBN Urban Outfitters, Inc. PM Monday
CBRL Cracker Barrel Old Country Store, Inc. AM Tuesday
SIG Signet Jewelers Limited AM Tuesday
DY Dycom Industries, Inc. AM Tuesday
EV Eaton Vance Corp. AM Tuesday
ADI Analog Devices, Inc. AM Tuesday
LOW Lowe’s Companies, Inc. AM Tuesday
MDT Medtronic plc AM Tuesday
DLTR Dollar Tree, Inc. AM Tuesday
CPB Campbell Soup Company AM Tuesday
HRL Hormel Foods Corporation AM Tuesday
HPE Hewlett Packard Enterprise Company PM Tuesday
CRM, inc. PM Tuesday
HPQ HP Inc. PM Tuesday
CPRT Copart, Inc. PM Tuesday
DE Deere & Company AM Wednesday

Today’s Picks – Day Trading!

Symbol Breakout Breakdown Momentum Momentum

New York Strategy Swing

# Date Stock Long\ Statues Data Close Profit\
Short Loss
1 1.9.2017 VNTV Long Close 14.9.2017 +1.35%
2 12.9.2017 CPB Short Close 15.9.2017 -1.10%
3 18.9.2017 INSM Long Close 22.9.2017 +1.92%
4 25.9.2017 GPS Long Close 2.10.2017 +1.69%
5 27.9.2017 SQM Long Close 29.9.2017 +1.69%
6 2.10.2017 ATI Long Close 6.10.2017 +3.12%
7 2.10.2017 TROX Long Close 18.10.2017 +13.93%
8 3.10.2017 ABT Long Close 11.10.2017 +1.60%
9 9.10.2017 ZGNX Long Close 12.10.2017 +3.26%
10 16.10.2017 INSM Long Close 19.10.2017 -2.82%
11 24.10.2017 CVS Short Close 1.11.2017 +4.77 %
12 30.10.2017 SKX Long Close 31.10.2017 -1.42%
13 31.10.2017 STX Long Close 2.11.2017 -0.15%
14 3.11.2017 AKAM Long Close 8.11.2017 +1.37%
15 10.11.2017 JUNO Long Close 14.11.2017 +1.26%
16 16.11.2017 FLR Long +2.72%

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

No.1 – TEVA                                                                                             No.2 –

Company Name Teva Pharmaceutical Industries
Entry Point 12.97
Stop Area 14.05
1st Target 12.55
Swing Target 10.85
Avg. Volume 24.79M
Sector Healthcare | Drug Manufacturers –
Earning Date
Risk Rate Normal
Risk\Reward Ratio 1.96:1

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

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