It’s well-known the stock market discounts news, but Friday was an interesting day.
To be honest I think we need a couple of more days price action to interpret the selling.
In one corner we have the SPY showing four well-offered days in a row (lower-lows, lower highs. In the other corner we have massive one week gains after earnings, followed by selling.
Is it profit-taking after monstrous short-term moves, or is the market dragging these earnings plays down? To be honest I think it’s both which is why I think we need a few more days. If a stock moves over $100 in a few days (AMZN, GOOG, CMG), how do you not book some profits?
The first few days of this week will tell us if the market is picking a bias (down) or profit-taking. If we go sideways on light volume the next move will be down. Today is setting up a lower open and a rally. Let’s see if we follow-through.
July 27 Stock Market Today: Map of the S&P 500
(click the map for a full view)
SPY will flip-flop back to the positive side this morning. Trade your stocks not the market. The stock market indices are no help right now for conviction.
(click the chart for a full view)
Stocks to Trade | Monday July 27, 2015
- The market is setting up a lower open to buy this morning.
- Looking for early support and for stocks to stay above their open price. If they don’t the selling could get ugly again.
Interesting Chart Lessons:
TSO Tesoro Corporation
Tesoro is offering one of the most consistent trading scenarios.
For some reason the inside day doesn’t get a lot of love from traders. You will find it to be one of the most powerful signals, if you are diligent adding it to your game plan every day.
They key to the trade is to forecast an increase in volatility, but not direction. Today TSO is working on 3 inside days in a row (one day barely peeked out). Although the stock is in a nice up trend, look for a trend day today.
(click the chart for a full view)
Earnings in play today > 1M avg shares: BIDU, HIG, NSC,
Bullish Ideas ATR/Volume/Price: AMBA, GOOG, GOOGL, TSO, UA, MBLY, CELG, NFLX, WBA, FB, MPC, GPRO, TWC, VLO, ACN
Bearish Ideas ATR/Volume/Price: uri, apa, rrc, car, eog, gmcr, pxd, utx, wdc, bhi, unp, mmm, mon
Weak Stock Weak Close: gm, aal, cop, mro, uri, cvx, ctl, mos, mos, dd, dfs, dvn, nbl, apa, oke, joy, yelp, adt, gmcr
Strong Stock Weak Close: JNPR, AMZN, V, EBAY, SBUX, JBLU, GOOG, GOOGL, FIT, ALXN
Weak Stock Strong Close: aem, cog
Strong Stock Strong Close:
20 day Breakdown: cof, dow, cop, uri, cvx, cat, bx, axp, utx, dfs, dvn, xlnx, hes,
20 Day Breakout: BEE, XRX,
2x Normal Volume: AMZN, JNPR, COF, URI, DTV, MXIM, V, SWKS, AEM, STT, BX, COP, JCI, CAT, DOW, HPQ, SCHW
Watch List Longs: MO, TWC, SBUX, CVS, DIS, ABT, JPM, WFC, EBAY, C
Watch List Short: cop, cvx, axp, xom, bby, kss, intc, dd, qcom, vz
Inside days: qcom, kmi, ual, unp, pg, stx, rrc, amba, adbe, crm, scty, cvc, wdc, tso
Chinese Stock Market Drops 8.5% | July 27 Trading Game Plan
Chinese shares tumble 8.5 percent in biggest one-day drop since 2007
Chinese shares tumbled more than 8 percent on Monday as an unprecedented government rescue plan to prop up valuations abruptly ran out of steam, throwing the viability of Beijing’s efforts to stave off a deeper crash into doubt.
Major indexes suffered their largest one-day drop since 2007, shattering three weeks of relative calm in China’s volatile stock markets since Beijing unleashed a barrage of support measures to arrest a slump that had started in mid-June.
“The lesson from China’s last equity bubble is that, once sentiment has soured, policy interventions aimed at shoring up prices have only a short-lived effect,” wrote Capital Economics analysts in a research note reacting to the slide.
Continue reading on reuters.com
China stocks drop 8.5% in massive rout
Uh oh. Here we go again.
China’s Shanghai Composite index shed 8.5% on Monday, a bone-rattling decline that raises questions about the government’s ability to prevent a crash.
Beijing managed to stabilize markets with a dramatic rescue in late June and early July, intervening in a number of ways to limit losses for investors.
But the rout has now resumed: Monday’s slump was the biggest daily percentage decline since 2007.
The vast majority of companies listed in Shanghai, including many large state-owned firms, fell by the maximum daily limit of 10%. Losses in Shanghai, and on the smaller Shenzhen Composite index, accelerated into the close. Shenzhen, which is heavy on tech stocks, closed down 7%.
Investors are worried about a possible withdrawal of stock market support by Beijing, and signs of a sharper slowdown in China’s economy.
Continue to money.cnn.com