Senior Trader

Barry

CEO and Board Member, Hot Stocks NYC was founded by Barry, a seasoned trader with over 50 years of market experience and Over 3 MILLION Trades, his unmatched ability to memorize and analyze the price action of thousands of stocks each day, there is nobody more qualified to help traders beat WallStreet than Barry. He specializes in discovering Emerging Growth Companies and is genuinely a momentum trader.

7 Stocks To Watch For May 31, 2017

Some of the stocks that may grab investor focus today are:

  • Wall Street expects Michael Kors Holdings LtdKORS to report quarterly earnings at $0.7 per share on revenue of $1.05 billion before the opening bell. Michael Kors       shares slipped 0.47 percent to $36.10 in after-hours trading.
  • Analysts expect Hewlett Packard Enterprise CoHPE to post quarterly earnings at $0.36 per share on revenue of $9.63 billion after the closing bell. Hewlett Packard Enterprise shares rose 0.16 percent to $18.88 in after-hours trading.
  • Danaos CorporationDAC reported stronger-than-expected results for its first quarter on Tuesday. Danaos shares surged 18.52 percent to $1.60 in the after-hours trading session.
  • After the markets close, Palo Alto Networks IncPANW is estimated to post quarterly earnings at $0.55 per share on revenue of $412.02 million. Palo Alto shares declined 0.91 percent to close at $117.00 on Tuesday.
  • Analysts are expecting Analog Devices, Inc. ADIto have earned $0.84 per share on revenue of $1.10 billion in the latest quarter. Analog Devices will release earnings before the markets open. Analog Devices shares rose 0.35 percent to $85.10 in after-hours trading.
  • Quanex Building Products CorporationNX reported upbeat earnings for its second quarter on Tuesday. Quanex shares climbed 4.90 percent to $20.35 in the after-hours trading session.
  • Before the opening bell, RBC Bearings IncorporatedROLL is projected to report quarterly earnings at $0.89 per share on revenue of $161.08 million. RBC Bearings shares slipped 0.15 percent to close at $99.45 on Tuesday.

NASDAQ (bars) up 15.3% year to date, while Russell 2000 (line) up just 1.9% year to date and that could be a problem

because 40% of NASDAQ 100 QQQ gains come from its top holding  of AAPL, MSFT, AMZN, FB,
GOOGL (see table below) and since they are having a good year (so far), Money Managers are
sending ALL NEW MONEY into the top QQQ movers, which sends AAPL, FB, MSFT, AMZN and
GOOGL even higher, while the rest of the market lags behind.
Year to date gains for Indexes
Nasdaq Composite +15.3% YTD
S&P 500 +7.9% YTD
Dow Jones Industrial Average +6.7% YTD
Russell 2000 +1.9% YTD
notice the growing divergence between Russell 2000 and the NASDAQ
Top weighted holdings of NASDAQ 100 (QQQ)
Stock Weight Amount
Apple 12.35% $6,164,720,714
Microsoft 8.22% $4,104,883,872
AMAZON.COM 7.21% $3,600,388,693
Facebook 5.37% $2,683,816,500
Alphabet 5.08% $2,537,641,302
Alphabet 4.45% $2,222,880,655
Comcast 2.92% $1,460,235,874
Intel 2.62% $1,308,461,396
Cisco Systems 2.44% $1,220,569,113
Amgen 1.76% $877,084,610
Kraft Heinz CO/THE 1.72% $860,399,339
Broadcom Ltd 1.47% $731,974,710
Celgene 1.41% $701,807,592
Priceline Group INC/THE 1.40% $698,732,986
Starbucks 1.39% $692,924,538
Charter Communications 1.36% $677,069,419
Walgreens Boots Alliance 1.34% $668,813,048
Qualcomm 1.34% $666,703,845
Gilead Sciences 1.30% $649,775,938
Texas Instruments 1.23% $613,185,049

Oil ETFs And OPEC Meet Again

The United States Oil Fund USO plunged 5.3 percent Thursday, bringing its year-to-date decline to 14.3 percent. USO, the most heavily traded oil exchange-traded product in the U.S., is now almost 20 percent below its 52-week high, putting it dangerously close to officially being in a bear market.

OPEC Extension

The Organization of Petroleum Exporting Countries is again confounding energy investors. On Thursday, the cartel and other major oil-producing countries extended a production cut that has done little to bolster crude prices.

“OPEC announced it would extend cuts in oil output by nine months to March 2018 on Thursday, after November’s landmark deal failed to clear a global supply overhang,” reported CNBC. “The move, which was then ratified by non-OPEC producers, was the base-case scenario for the market and means the 1.8 million barrel per day supply cut will roll over until the first-quarter of 2018.”

Year to date, USO has added more than $125 million in new assets, but there are some signs traders are growing tired of the fund from the long side as USO lost nearly $15 million in assets since the start of the current quarter.

Making the long oil trade all the more difficult is that high U.S. oil inventories mute the impact of output reductions by OPEC and other countries, indicating that oil bulls need to focus on other factors.

“Chinese demand in addition to U.S. production (including Trump’s export policy,) is probably more critical to oil price formation so is likely keeping oil range-bound, even if the possible range is wide,” said S&P Dow Jones Indices in a recent note. “According to index history, oil could reach between $25–$85 dollars before setting record moves. As OPEC cuts and if U.S. inventories decline to low levels, oil prices may increase, so China may use their own reserves or shop around rather than purchase oil at a higher price, capping the high end of the price range.”

Capitulation And Rebalancing

Some oil market observers may argue that capitulation is near and that the market has digested most of the readily available bad news, but there are other factors that need to come into play to help oil rebound.

“In this period of market rebalancing, it seems opportunities are hard to find but the good news possibly is there seems to be more stability from the lower volatility, higher correlation and tight term structures. If it is underpinned by the fundamentals of a recovering oil market, there could be more upside than downside,” said S&P Dow Jones.

A Peek Into The Markets: U.S. Stock Futures Drop Ahead Of GDP, Durable-Goods Orders Data

Pre-open movers

U.S. stock futures traded lower in early pre-market trade. Data on durable goods orders for April and Gross Domestic Product for the first quarter will be released at 8:30 a.m. ET. The University of Michigan’s consumer sentiment index for May is schedule for release at 10:00 a.m. ET. U.S. markets will be closed Monday for the Memorial Day holiday.

Futures for the Dow Jones Industrial Average dropped 38 points to 21,025.00, while the Standard & Poor’s 500 index futures fell 4.75 points to 2,408.75. Futures for the Nasdaq 100 index declined 8.25 points to 5,773.75.

Oil prices traded lower as Brent crude futures fell 0.37 percent to trade at $51.27 per barrel, while US WTI crude futures dropped 0.27 percent to trade at $48.77 a barrel. The Baker Hughes North American rig count report for the latest week is schedule for release at 1:00 p.m. ET.

A Peek Into Global Markets

European markets were lower today, with the Spanish Ibex Index dropping 1.01 percent, STOXX Europe 600 Index falling 0.52 percent and German DAX 30 index dropping 0.52 percent. The UK’s FTSE index was trading lower by 0.02 percent, while French CAC 40 Index declined 0.77 percent.

In Asian markets, Japan’s Nikkei Stock Average fell 0.64 percent, Hong Kong’s Hang Seng Index rose 0.03 percent, China’s Shanghai Composite Index gained 0.07 percent and India’s BSE Sensex rose 0.90 percent.

Broker Recommendation

Analysts at JP Morgan upgraded Ecolab Inc. ECL from Neutral to Overweight.

Ecolab shares rose 0.77 percent to close at $130.31 on Thursday.

Breaking news

  • Big Lots, Inc. BIG reported better-than-expected earnings for its first quarter and raised its FY17 outlook.
  • GameStop Corp. GME reported stronger-than-expected results for its first quarter. However, the company reaffirmed its FY17 earnings outlook.
  • Costco Wholesale Corporation COST reported better-than-expected earnings for its third quarter.
  • Ulta Beauty Inc ULTA reported upbeat results for its first quarter and raised its FY17 outlook.

Market Summary #Wednesday, May 24, 2017

Wednesday, May 24, 2017

Market Summary
    Yesterday the markets shrugged off the terror attack in the U.K. and rolled higher for the 4th day in a row,
which has got to be the longest winning streak in 2017. The markets rebound has the Indexes within spitting
distance of last Mondays highs at DOW 21,000, S&P 2404 and NASDAQ 6160 and if nothing was going on,
the DOW, S&P and NASDAQ all could be setting new highs by the end of this week.
    Unfortunately, there is always something going on and aside from the Brits, raising their Terror Threat Level
to “Critical”, over in Asia, Moody’s has decided to cut China’s Debt Rating, because their Economy is slowing
and their Debt stands at 250% of the GDP, higher than the U.S. and that isn’t even the bad part! The bad part
is that the recent surge in Debt, isn’t coming from Government Spending, it is coming from Corporate and
Household Debt, which is way worse, because the PBOC, can always print more money to pay their Debt,
but Corporations and Mr & Mrs Wang,Li, Liu, Lin or Zhang, cannot print money and will go Bankrupt. Right now,
the Chinese are pooh, poohing the situation, but it is something to be concerned with. In addition to China’s
woes, the EU has been enjoying some solid economic growth, which is great, except that the ECB, is starting
to think about tapering their Stimulus Program and if you recall what happen when Ben Bernanke tried that
in June 2013, it wasn’t pretty.
    I know that the U.S. and the Global Economies are good for now and everyone is focused on the wonderful
Budget fantasies coming out of Washington, but the realities of the World, are still out there and you always
have to be concerned about what’s next. Speaking of what’s next, what’s next is the FOMC Minutes from the
Fed’s May 3rd Meeting at 2:00 today and we will get a good idea if the Fed will raise rates at the June 13-14 meeting.
    Overnight the Global markets were mixed and in early trading the DOW is flat along with Bonds, the Dollar
and Commodities as everyone is waiting to hear from the Fed this afternoon. This means that we are in for
a very long quiet day, but with the OPEC meeting tomorrow and a Credit Suisse upgrade in the Steels we might see a rebound in these battered sectors.
Today’s Early Markets
DOW Futures— up 10.00             London – up 8.58
S&P – up 100                               DAX – down 20.56
GOLD—$1250 July                      Nikkei — up 129.84
OIL— $50.70 July                        HangSeng — up 25.78
 
DOW RESISTANCE 21,000       S&P RESISTANCE 2405/2112
DOW SUPPORT: 20,800            S&P SUPPORT: 2388/2380
$NASDAQ RESISTANCE 6160
$NASDAQ SUPPORT 6100

Morning Notes May 23, 2017 Market Summary

Market Summary
    The markets traded higher for the 3rd day in a row, as the “buy the dip” crowd kept chipping away at
the markets big losses from last Wednesday. The Indexes closed yesterday, within throwing distance of last
weeks highs at DOW 21,000, S&P 2400 and NASDAQ 6160, all pretty much on its own merits of strong 1st
Qtr earnings and improving outlooks going forward. If the markets traded in a vacuum, I would say that
the averages were “locked and loaded” and very ready to explode higher across the board, just like they
were last Tuesday, right before that business with the President, maybe, but not likely, asking or not asking,
Ex-FBI Chief Comey, to back off on the Mikey Flynn investigation, because he was a “good guy”.
    Anyway, the markets don’t trade in a vacuum and this morning, Investors are faced with another terror
abomination, a bombing of a Concert in Manchester U.K.. So far the markets are shrugging off the horrible
news, but with the averages near last week’s highs, I wonder if there’s enough fuel to push the averages through to new highs, especially with the attack in the U.K. and front of the 3-day Memorial Day weekend.
    This morning, the Trump Administration released its 2017 Budget and judging from various Politico’s reaction
to the news, this Budget as is, will be DOA in the Congress. Also on the slate today, we will hear CIA Director John Brennan’s testimony, on the CIA’s Russia Investigation at 10:00am and there’s always the possibility of a
surprise, which could affect the day’s trading, one way or another.
    Overnight the Global markets were quietly mixed and in early trading the DOW is up 40pts, the Yield on the
10 Yr is 2.25%, the Dollar is flat and Commodities are slightly lower.
Today we have the flash PMI Services and Manufacturing estimates for May out at 9:45am, followed by the
April New Home Sales at 10:00am, but none of this will move the markets, but tomorrows FOMC Minutes will.
 
I am working from 80 Broad and can be reached at 212 -417-8062
Today’s Early Markets
DOW Futures— up 50.00                          London – up 8.58
S&P – up 400                                            DAX – up 33.56
GOLD—$1260 July                                   Nikkei — down 67.84
OIL— $50.40 July                                     HangSeng — up 11.78
 
DOW RESISTANCE 21,000                   S&P RESISTANCE 2405
DOW SUPPORT: 20,800                       S&P SUPPORT: 2388/2380
$NASDAQ RESISTANCE 6160
$NASDAQ SUPPORT 6100

‘Trump Troubles’ Could Reinforce S&P 500’s Underperformance For Some Time

Jay Pelosky, the founder of Pelosky Global Strategies, highlighted something about the stock market’s 2017 performance that may be flying under the radar: It isn’t as great as it seems.

Speaking as a guest on “Bloomberg Daybreak: Americas” on Monday, Pelosky explained that the developed markets excluding the U.S. have seen their stock markets gain 15 percent since the start of 2017, which is even short of the 18-percent return emerging markets have shown. Meanwhile, the S&P 500 index is up just 6 percent — at time of publication, the SPDR S&P 500 ETF Trust SPY was up 7.15 percent year to date.

“The real question is not why has the S&P 500 held up so well, the real question is: Is the rest of the world starting to take the leadership baton away from U.S. equities?” Pelosky asked. “And that’s a big deal because these moves tend to last for years — not quarters, not months.”

Trump Troubles

Pelosky isn’t necessary optimistic that U.S. markets can regain its leadership position as a home for stock market outperformance, especially under the current political climate, which he dubbed “Trump troubles.”

Pelosky believes the current “Trump troubles” will first lead to “policy inertia,” which then leads to weak growth. As such, earnings strength will shift from one of the best in years to questionable at best and ultimately present a poor risk-to-reward profile for U.S. equities.

Pelosky continued that a poor risk to reward profile for U.S. equities could further emphasize America’s status as a market laggard, not a market outperformer.

Children Among The 22 Dead In Latest UK Terror Attack

Terrorism struck yet again in the United Kingdom. Two months after a terrorist drove a car into pedestrians on the iconic Westminster Bridge in London, authorities are saying a suicide bomber blew himself up at the conclusion of an Ariana Grande concert in Manchester.

22 Dead, 59 Injured, 13 Missing

According to the UK-based Telegraph, children are among the 22 people killed and 59 injured. The publication noted that the first confirmed fatality was an 18-year old Ariana Grande “superfan” who met the pop star in 2015.

Another 13 people remained missing when Telegraph’s report was published.

British Prime Minister Theresa May confirmed the terrorist nature of the attack and said, “All acts of terrorism are cowardly attacks on innocent people, but this attack stands out for its appalling, sickening cowardice — deliberately targeting innocent defenceless children and young people who should have been enjoying one of the most memorable nights of their lives.”

Monday’s attack marks the country’s worst terror attack since multiple bombs across central London killed 52 people.

ISIS To Blame?

Authorities have yet to confirm the identify the suicide bomber and any possible links to terrorist groups, including ISIS. But what is known is that the terrorist was not acting alone as a 23-year old man was arrested in South Manchester in connection with the bombing. According to a Times report at 8:09 a.m. ET, ISIS has claimed responsibility for the atrocity.