China Rout Grips Global Markets 1-4-16 | Stocks to Trade

how to manage winning tradesNew year, new hope for consistent stock trading volatility…

2015 was a year to learn stock picking. Profitable trading required preparation. Traders with lazy game plan habits, paid the price. If you held your own in 2015, or made money, you are in good shape. It was not an easy tape.

Most experienced day traders I know, did well because the discipline to remain in cash, was the correct play more often than we cared to admit.

The break-even/new trader received a gut-check in 2015. The easy-money, two hour workday did not drop in your lap. Many days, the best trading occurred mid-day, or in the afternoon. The old-reliable first two hours of the day, were a dud. Day trading 2015 was a year to earn your stripes.

Let’s learn from the past and look forward to a successful 2016.

The trading strategy I plan to teach this year, in a big way, is tape reading. I see many hard working traders missing this last critical element of success. Understanding the odds of earning money, is different than simply identifying a long, or short-sale idea.

Let’s do this together. Let’s have an awesome 2016.

Stock Market Today: Map of the S&P 500

(click the map for a full view)

China Rout Grips Global Markets 1-4-16

Day Trading Game Plan: The SPY ETF Outlook

SPY price action set for a much lower open this morning (6am) just .50 away from the $200 support level. Trading a huge gap lower is a low-probability trade. I would not be bidding a weak global market into support, but it’s not a long either. The smart trade is to let the SPY bounce 50% from the previous close and look for a short-sale entry in that area.

(click the chart for a full view)

China Rout Grips Global Markets 1-4-16

Pete’s Notes:

  • Oil prices finding a short-term bottom.
  • Patience needed on the open with a large gap lower.
  • Financials still neutral for me as a group.

Technical Analysis | Charts of Interest

AAPL Apple Inc.

Short-Sale

AAPL traded between $106-109 last week, but the real story is the relative weakness during a period the market showed momentum to the upside. We are looking at two $5 price targets for a short-sale, $100 and then $95.

(click the chart for a full view)

China Rout Grips Global Markets 1-4-16

China Rout Grips Global Markets 1-4-16 | Stocks to Trade

> 20sma | positive the last 5 days | closed 2% higher from the open: GPOR, RRC, LBTYK, OKE, MBLY

< 20sma | negative last 5 days | closed 2% lower from the open: adi, txn, swks, save

Bullish Ideas ATR/Volume/Price:  TSLA, ILMN, ACE, ADBE, FSLR, RLYP

Bearish Ideas ATR/Volume/Price: swks, aapl, wdc, de, amba, cmi, ibm, dis, kmx, pru, cf, ua

Weak Stock Weak Close: swks, skx, mos, hst, fdc, adi, gps, lltc, aapl, pot, wu, wdc, amba, jblu,, gme, mar, ntap, ibm, wy,

Strong Stock Weak Close: QUNR, RLYP, ADBE, ATVI

Weak Stock Strong Close: wmb, twtr, clr, dvn, mur, lng, nfx, nbl

Strong Stock Strong Close: SCTY, CSIQ, ILMN

20 day Breakdown: aapl, bbby, bidu, ctrp

20 Day Breakout: CVC, GE, QVCA, SQ,

2x Normal Volume: NCR, WTW

Watch List Longs: GE, MCD, MO, PM, BMY, BRCM, KLAC, ADBE, MSFT

Watch List Short: cof, tgt, ms, dis, met, pru, axp, ntap, tol, m, akam, lltc, orcl, c

Inside days: tsla, hp, cma, csiq, mxim, qihu, fti, hal, do, rax, mnk, vrx, scty

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