“The speculator’s chief enemies are always boring from within. It is inseparable from human nature to hope and to fear. In speculation when the market goes against you hope that every day will be the last day – and you lose more than you should had you not listened to hope – the same ally that is so potent a success-bringer to empire builders and pioneers, big and little. And when the market goes your way you become fearful that the next day will take away your profit, and you get out – too soon. Fear keeps you from making as much money as you ought to. The successful trader has to fight these two deep-seated instincts . . . Instead of hoping he must fear; instead of fearing he must hope.” — Jesse Livermore

1. Trump Named New national security adviser, Update travel ban — Lieutenant General H. R. McMaster has been named as President Trump’s new national security adviser, while retired Army Lt. Gen. Keith Kellogg, who had been his acting adviser, will now serve as the National Security Council chief of staff. Trump also plans to issue a revised version of his temporary travel ban as early as today, with a likely focus on fewer people so it could survive immediate legal challenges.
2. Fed Reserves Harker, Williams & Mester Fedspeaks Summary — speaking of rate hike signals, Philly Fed President Patrick Harker stated last week that he didn’t think “March should be taken off the table,” while policymaker John Williams felt the U.S. economy is “essentially at full strength.” Meanwhile, Cleveland Fed President Loretta Mester cautioned that Trump’s administration brought a new degree of uncertainty to the central bank’s outlook, but she’s “comfortable” with rates moving higher.
3. UPS Tests Drone Deliveries — UPS just tested a delivery drone on a farm outside of Tampa, Florida, with the UAV returning to the roof of the truck. The big feat? The vehicle already moved 2,000 feet down the road. “Drones won’t replace our uniformed service providers,” said UPS’s Mark Wallace. “That’s key, but in this case, it really is there to assist.”
4. Many Fed Officials See Rate Hike ‘Fairly Soon,’ Latest Minutes Show — Federal Reserve officials expressed confidence they can raise interest rates gradually, while a hike “fairly soon” might be appropriate to avoid the risk of an overheated economy, according to the latest minutes of Federal Open Market Committee’s. Before the minutes were released, traders are pricing in about a one-in-three chance of a rate increase when the FOMC next meets March 14-15.
5. S&P500 Market Stats that Show Gains in Jan & Feb –since 1945, there have been 27 years when the S&P has achieved gains in January and February. The stock index then finished up for the year (on a total-return basis) in every one those years, according to Stovall. The average rise in those years was 24%, as shown in his chart below, and the gauge was up further in the remaining 10 months 25 of 27 times.

6. New Attorney General Sessions Reverses Obama Prison Order — the U.S. Justice Department has reversed an order by the Obama administration to phase out the use of private contractors to run federal prisons. In a memo, Attorney General Jeff Sessions said the policy impaired the government’s ability to meet the future needs of the prison system. Related companies are: CoreCivic (NYSE:CWX) and GEO Group (NYSE:GEO)

The week ahead — Economic data from Econoday.com: