My Market Outlook for the week of January 23rd 2017

Mr. "Tweeting Trump"  is finally in office and we have over 70 of the S&P 500 companies reporting earnings this week.   It will be a very volatile week.   Major airlines    $AAL,  $JBLU  &   $HA   and defense companies   $LMT,  $NOC,  $RTN  &   $GD,   plus mammoth technology companies like   $GOOGL   and   $QCOM   are slated to enter the earnings confessional booths.   Institutions will either react positively or negatively to the earnings report and that will determine the direction of the market this week.   I have learnt to tune out the noise from the media as well as the  "Tweeting Trump".   Case in point ... $BA   is  +21%   in the last 16 weeks and the stock is just consolidating the gains last 6 weeks.   It is best to let the stock charts paint the picture for you.   It is ultimately the institutions that determine the the price of the stock.   I just got the news flash as I am writing this post Sunday night that   $UAL   is grounding all domestic flights because of computer problems.   This stock was setting up a buy point of   $76.90   after consolidating for the last 6 weeks.   I would suggest that we all wait to see how the market reacts to this news flash.

We have been 3 weeks into the New Year and the   Financial Sector   has been consolidating the   +20%   gains for the last 6 weeks.   $DJI   has pretty much stalled.   $QQQ   on the other hand has done a remarkable performance of  +4%   Technology Sector   is where the institutions are deploying their cash now.   They are harvesting their profits from the   Financial Sector   and the big  DOW   companies.

Stocks on My Watch List

Currently we have earnings in the way and stocks could move up or down depending on how the institutions view the earnings report.   Lot of stocks do break out during the earnings cycle so it is best to be prepared to take a position on stocks on your watch list.   We do have a high   distribution days   count of   13   between the   $SPY   and   $NASDAQ    This is a very high count and should be a signal to use caution with your stock position.   Here are some stocks that I shall be monitoring this week:

1. $NFLX
2. $AVGO
3. $NVDA
4. $HQY
5. $CFG
6. $NTES
7. $SCHW
8. $UAL

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Happy Trading !

Amin