Blue Collar Trading Mindset Required | Stocks to Trade 10-19-15

Blue Collar Trading Mindset RequiredStock trading is a white collar profession. Trading in 2015 has required a blue collar mindset.

This year you had to work hard to get paid. I’m not saying trading for a living is easy, but sometimes the stock market is so obvious it can seem that way. 2015 is the year the blue collar trader. If you want to go to the bank, put in the work required to find great stock specific ideas.

Trade what you see has never been more relevant for today’s stock trader.

Weak earnings reports leading to a gap lower, “should” follow through with lower prices. The charts show the recent trend is higher. The problem with having conviction right now is the recent trend has only three weeks of maturity. It’s hard to be bullish with a vengeance.

Many high-beta stocks continue to flip-flop bullish days with bearish days. We are in a weird tape. Ask any trader in the business for more than 5 years and they will tell you the same. Some markets you can slide by without working hard to find good ideas.

This is not that market.

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Blue Collar Trading Mindset Required

Day Trading Game Plan: The SPY ETF Outlook

SPY closed strong. What looked like a day of apathy resulted in new 20 day highs. With 3 weeks of buying and resistance overhead, the long side is correct. But how much room to go do we have?

(click the chart for a full view)

Blue Collar Trading Mindset Required

Pete’s Notes:

  • Corporate earnings reports are anything but awesome, yet the buyers still show up. Stock prices are opening lower and trading above the open by end of day.
  • Is this buying or simply a lack of sellers? The GS gap lower and monster rally is the epitome of this quandary.
  • Short-sellers are not having fun.

Charts in Focus

Baker Hughes Incorporated, BHI

BHI bearish engulfing pattern on a strong day in the general market. I like BHI for follow through lower today. The profit target on the short-sale is $50.50.

(click the chart for a full view)

Blue Collar Trading Mindset Required


Stock Market Bullish Tone Gaining Steam


Blue Collar Trading Mindset Required | Stocks to Trade 10-19-15

Earnings in play today > 1M avg shares: CE, SONC, ZION, BRCM, HAS, IBM, CBI, VRX, MS, HAL,

Relative weakness to yesterday’s SPY positive change from the open: ual, stx, hon, bhi, cam, gmcr, hp, uri, scty, cf, qrvo

> 20sma, positive week and closed 2% higher from the open: TWTR, LVS, SNDP, KHC, PXD

<20sma, negative last 5 days and closed 2% lower from the open: stx, bhi, lng, gmcr, scty

Bullish Ideas ATR/Volume/Price: NKE, TSO, ADBE, CRM, HFC, ACE, MCD, PSX, AMZN, ACN, MA, HD, GOOGL, FB, EA

Bearish Ideas ATR/Volume/Price: xon, thc, amba, gpro, stx, feye, vmw, yum, swks, gmcr, scty, hot, dltr, dg, de, tgt, nsc, bhi,

Weak Stock Weak Close: aer, bhi, gmcr, kors, lng, pcar, scty, stx

Strong Stock Weak Close: ZG

Weak Stock Strong Close: feye, vrx, wpz, infn, thc, tsla, yum

Strong Stock Strong Close: TSN, MGM, NVDA, MXIM, GE, RAI, ADBE, PM, SYY, PGR, FB, EA, HRB

20 day Breakdown: bby, kors, jblu, stx, pwr, wmt

20 Day Breakout: FB, JNJ, ESRX, BMY, ADBE, MDT, DVN, NKE, AMZN, HD, CVS, PPG, CRM, KHC, MA, GS, EA, ACE, PXD, PRU, INTU

2x Normal Volume: yoku, pwr, jah, wynn, hon, stx, wmt, ual, mxim, twtr

Watch List Longs: GE, PM, MO, MCD, KO, COST, SBUX, BMY, TRV, HD, JNPR, INTC, ADBE, DAL

Watch List Short: kss, wmt, tgt, bhi, m

Inside days: aapl, tsm, mcd, hlt, gps, mos, ir, de, tgt, sndk, ibm, ca, all, lrcx, acn, brcm, csiq, sbh

 

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