Bullish Price Action Awakens Retail Traders

The amount of friends who want stock trading advice the last week or so is staggering.

Price action, specifically buying, is attracting a lot of moths to the street-light. Rising stock prices and TV cheerleaders makes for a party, but buying and buying at the right time need to be in sync.

If you’re a trader (not investor), the reward potential has declined the last few days. This means buying is correct, we should see one more day today, but the market and many stocks need to pause and consolidate recent gains.

A higher open today and push higher is a day to book profits.

Bullish Price Action Awakens Retail Traders

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Bullish Price Action Awakens Retail Traders

Day Trading Game Plan: The SPY ETF Outlook

SPY breakout and close near the high is solid price action. The chart looks like one more day of  buying can be expected which will take us into the next resistance near $205.

This sets the SPY up perfectly for a pull back next week to $200. Things will get interesting then. Will we trade to new highs form there or do we go back into the range?

(click the chart for a full view)

Bullish Price Action Awakens Retail Traders

Pete’s Notes:

  • Quite a few stocks overbought or at resistance. Casino stocks at the top of this list.
  • Interesting to note, other than NFLX, high-beta stocks not participating yesterday in a big way.

Charts in Focus

United Parcel Service Inc. UPS

Clean breakout in UPS with plenty of room to go to the #112 area. If you’re reading the tape in this stock over the last 5 days you can see it should consolidate here. A pause for a few days above this resistance level would be healthy price action. A pause sets you up to trade the next leg higher. Keep it in your trading journal and make sure UPS is one of the first stocks you review for your daily game plan.

(click the chart for a full view)

UPS


Traders Await FOMC Minutes | Stocks to Trade 10-8-15


Bullish Price Action Awakens Retail Traders | Stocks to Trade 10-9-15

Earnings in play today > 1M avg shares:

Relative weakness to yesterday’s SPY positive change from the open: amba, gpro, mbly, mdvn, pypl, rax, swks, vips

> 20sma, positive week and closed 2% higher from the open: WLL, CLR, NBL, CVX, COP, SNDK, LYB, NFLX, CAR, HES, APA, DVN, EOG, NFX, UNP, ACN, OXY, HAL, APC, MAR, LOW, FSLR, VLO, UA, BABA, NSC, MDT, WYNN, IR, LVS, CAT, CF

<20sma, negative last 5 days and closed 2% lower from the open: amba, gpro, mdvn, swks

Bullish Ideas ATR/Volume/Price: LYB, NFLX, NKE, EOG, NFX, ACN, EL, PEP>100, HFC, CRM, TSO, AMT, MCD, MPC, MAR, LOW, FSLR, DLPH, MA, VLO, UPS, LB, UA, HD, V, PSX, CAM

Bearish Ideas ATR/Volume/Price: vrx, qrvo, mnk, gpro, amba, yum, mdvn, wpz, myl, ual, tsla, dltr, avgo, abc, lrcx, cah, fit, aapl

Weak Stock Weak Close: amba, ebay, gpro, mdvn, pypl, rax, swks

Strong Stock Weak Close:

Weak Stock Strong Close: abt, agn, cpgx, hds, lrcx, mjn, mnk

Strong Stock Strong Close: ZG, LYB, NFLX, EOG, NFX, TS, ACN, OXY, IPG, MDLZ, PGR, TSN, CMCSA, MAR, LOW, VLO, WM, UA, MGM

20 day Breakdown: dg, dltr, ebay, gpro

20 Day Breakout: EMC>27.50, BMR, NFLX, TWTR, JOY, WYNN, IPG, BHP, RIO, HES, RSPP, PXD, FAST

2x Normal Volume: EMC, BMR, EBAY, MAS, FITB, POT, YUM, JOY, DG, LLTC, WYNN, OLN, DLTR, CPGX, RSPP

Watch List Longs: GE, KO, PM, SBUX, COST, MCD, MO, VLO, HD, TJX, JNPR, EMC, INTC, DOW, MSFT, CSCO, LOW, CSCO, AKAM

Watch List Short: kss, abt, mrk, m, ual, ebay

Inside days: pfe, mas, nvda, wll, cog, jnj, jblu, nov, abbv, txn, bmy, cat, aig, apa, symc, apa, symc, myl, dvn, adbe, clr, wfm, rdc, kss, holx, tel, jbl, lng, kors

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