First trading day after New Year
U.S Stock market closed in winning side after an end of year event where president-elect Trump surprises the market with a clean win over Hillary Clinton. The 2016 year turn out rosy for the stock market, especially the shares in financial sectors, for example, Goldman Sach which jumped from $170 to $240 in just two months. Another example is scandalized Well’s Fargo where people expect the bank went bust after it fell from $50 to $43.5, but in the end, it closed 2016 at $55.
This year not yet started, in fact, the real sentiment not yet begun as President Trump has not entered the White House until January 20. Not much news release today, the first trading day might turn out light as traders return from holiday.
Dow Jones Industrial Averages (INDU)
A drop to close the year 2016 and a continuation to open 2017 is one of the possible scenarios especially when the big trigger located near the end of January. We expect Dow Jones Industrial Averages to continue its bullish trend near the end of January, and looking for a bullish entry when the index continues correction.
FedEx Corporation (FDX)
FDX might be a good choice for the long position. The stock price was in bullish trend last year, and it is near the daily averages. If the price formed a bullish pattern, it would provide the bull trader with long opportunity.
MCD performance in 2016 is mildly bullish in the first half, but turn bearish in the third quarter. The stock saved by President Trump rally and close 2016 at $121.72 or gained $4.47 from $117.25.
The price break above its resistance trendline and revisit it, the bull will look for a chance to place long position.
AA – move lower below $28.75 and also the daily SMA 200.
KR – the price moving near its daily SMA 200, look for a bullish pattern from the averages.
GM – Opportunity for long position when the price reaches its daily SMA 50.