Trading Opportunities Remain Stock Specific

I know you don’t want to hear it, but we are in capital preservation mode.

Stock trading for a living is great when momentum and order flow are obvious, and mental torture when it’s not. The truth about trading for a living is that we earn 90% of our money on 40% of our trades.

The challenge for us is having discipline the other 60%. The other 60% are the trades that break-even. Trading is not a 9-5 job. The sooner you accept it, the easier it will be to be disciplined.

Disciplined means accepting risk on great ideas. You would be shocked at the number of traders who take risk, simply because the the market is open.

If your dream is to have a long trading career, you must have strict criteria for when to trade, and when not to.

The stock market is random but when to trade should not be.

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Trading Opportunities Remain Stock Specific

Day Trading Game Plan: The SPY ETF Outlook

The price action int he SPY is confusing a lot of traders. The amount of gaps (in both directions) and lack of momentum-type follow through is frustrating. Major support at the $188 level. Set to open lower near the $190.50 support.

(click the chart for a full view)

Trading Opportunities Remain Stock Specific

Stocks to Trade | Monday September 28, 2015

Pete’s Notes:

  • A lot of stocks in the short-sale lists but many near support of over-sold. Mostly likely need a day or two of consolidation.
  • Financials, oil and the SPY in a trading range since 9.25. This is a blue collar stock market, you need to work hard to get paid, especially day trading.
  • The stock market needs a catalyst to get us out of the day-to-day bias.

Charts in Focus

Ambarella, Inc.  AMBA

AMBA is one of a few stocks with obvious order flow and room to go. A bearish engulfing candlestick and almost $8 to the next support level makes it a must watch this week.

(click the chart for a full view)

Trading Opportunities Remain Stock Specific


Trading Opportunities Remain Stock Specific


Trading Opportunities Remain Stock Specific, today’s list is weighted to the short side again.

Earnings in play today > 1M avg shares:

Stocks that showed Relative Strength Yesterday– contra to the SPY negative change from the open on 9/25/15: HFC, AEM, BIG, CRUS, DNKN, DYN, HFC, PBF

Above the 20sma, up for the week and closed 2% higher from the open: AEM, BIG, CRUS, DNKN, HFC

Below the 20sma, Down for the week and closed 2% lower from the open: amba, xpo, gpro, hznp, wynn, mbly, myl, feye, baba, lulu, lrcx, stx, wdc, amgn, agn, apc, bmy, ual, bhi, cop

Bullish Ideas ATR/Volume/Price: NKE, UA, TSLA, LB, TSO, HFC, ADBE, SBUX

Bearish Ideas ATR/Volume/Price: amba, xpo, gpro, hznp, wynn, mbly, lng, cf, myl, feye, mon, baba, lulu, cat, abbv, lrcx, stx, wdc, isis, amgn, hca, hca, mrk, mjn, mdt, mdvn, de, lvs, bidu, ppg, etn, twx, cah, utx, biib, hon, apa, mar, cern, hes, yum, oxy

Weak Stock Weak Close: amba, xpo, gpro, hznp, wynn, mbly, pot, myl, feye, baba, rax lulu, abbv, bkd, lrcx, stx, wdc, isis, amgn, endp, celg, adn, pcar, hca, teva, bax, mrk, mjn, mdt, cien, mdvn, abt, bxlt, fslr, gild, nvs, ar, yelp, gsk, cah, biib, jnj, esrx, scty, grub, apc, ncr, pfe, cern

Strong Stock Weak Close: TSLA, FB, AMZN, LLY, HOLX

Weak Stock Strong Close: agco, cci, five, bwa, dyn, pbf, tsco

Strong Stock Strong Close: BIG, JBL, CRUS, HFC

20 day Breakdown: celg, abt, xpo, wynn, agn, do, endp, mjn, pcar, slca

20 Day Breakout: HFC, CRUS, PG, NKE

2x Normal Volume: nke, finl, celg, xpo, bbby, crus, etn, vrx, agn, endp, mkn, hrtx, fl, tsco, ypf

Watch List Longs: SBUX, MO, ADBE, BRCM

Watch List Short: amgn, mrk, abt, kss, hon, jnj, cvs, adm, wmt, wynn, m, nue, hpq, lvs, qcom, dd, ntap, mrk, mjn, mdt, bxlt,

Inside days: cat, cf, ete, ntap, cbs, scty, ge, kim, grub, twx, rio, hot, bhp, rrc, ppg, slb

About the Author

Pete is a full-time trader and mentor since 2000. Author of Equity Trader 101 and the Order Flow Method. He is dedicated to help self-directed traders to bust through the six-figure level.

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