Buy the lower open should be your game plan for the day. Economic numbers aside, its the correct play in a bull market.
There will be days when you do the right thing and lose money, you can’t focus on the one or two days you don’t get follow-through.
We are after probabilities over the long-term, not trade-by-trade or day-by-day. Today’s best plays will be strong stocks with a weak close yesterday.
Look for a spot around yesterday’s low to bid or an inside day breakout. Day traders have been frustrated the last few weeks but if you were patient and didn’t over-trade, you should have earned net profits for the week yesterday. There was a lot of clean follow-through.
There are plenty to choose from below.
Stock Market Indecision: Map of the S&P 500
Day Trading Game Plan: The SPY
SPY finally broke the pattern of indecision on good volume. A clean dollar of trading profits on the short side once it closed below the open price. The correct trade is to buy the lower open @ $209.75
Buy the Lower Open | Stocks to Trade |Friday June 5, 2015
Pete’s Notes:
- Plenty of trade set ups on both sides of the tape.
- Semiconductor stocks giving us a pull back finally
- WYNN and LVS bottomed as we discussed a few days ago. Looking for a spot to short.
Interesting Chart Lessons:
- UA (below) almost a month of consolidating, 4 tight days recently, looking for a trend day.
- SNDK consolidation back on the list
Earnings in play today > 1M avg shares:
Bullish Ideas ATR/Volume/Price: AET, AMZN, CTRP, FEYE, GILD, GPRO, GS, HLF, NFLX, NXPI, RCL, SWKS, TSLA, YOKU
Bearish Ideas ATR/Volume/Price: aal, gmcr, kors, rrc, nsc, ual, mon,
Weak Stock Weak Close: aal, cenx, chk, cpn,
Strong Stock Weak Close: CIEN, FEYE, GT
Weak Stock Strong Close: ntap, kors
Strong Stock Strong Close: AEO, KBR, MYL
20 day Breakdown: a, cpn, gsk,
20 Day Breakout: DTV, T
2x Normal Volume: TMUS, LNG, WY, DOW, FEYE, CCI, LVS, WYNN, CIEN
Watch List Longs: DOW, AET, SBUX, PRU, JPM, EBAY, M, INTU, DOW, MYL, LRCX>84
Watch List Short: chk, hal, cop, xom, all, cost, trv, vlo, ko, luv, ntap, dd, klac, gsk, stx
Inside days: C, COG, AIG, SCHW, USB, MET, YOKU, MCD, M, PRU, GS, ETFC, AMTD, YUM, QIHU, TOL, FAST, TTWO,
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