The Stock traders earning the most money this year, are those trading less…
I should probably clarify, I have no idea who is making or losing money. What I can tell you with conviction, is that day traders who can’t discern between a great idea, and everything else, are trading too often. A lot of stocks are in 4 week trading ranges. The institutional edge on the charts is slim pickings.
Be patient to enter, be patient when you do.
This is a common theme in my coaching calls. The angst of over trading is felt most when the stock market serves up 2 days of easy profits. Day traders are looking at their P&L and saying “That was awesome, but now I am even for the week…”
To get past break-even requires losing less, and holding winners longer. I can hear you thinking, “no s**t genius.” My reply would be, simple yes, easy no.
Trading less is winning right now. There will be a time for being aggressive, day trading is about cash flow until then.
Pete’s Day Trading Notes:
- The stock market will test the bullish conviction today.
- Where have the bears gone?
- The day-to-day bias pushing the stock market around is amazing. A long-term bias is a month. A screaming reason to have a definite trading plan. Too easy to get bounced around as the bias changes from Monday to Wednesday.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
–> Top 25 Proprietary Trading Secrets
Crude Oil Prices Firm-SPY Tests Key Resistance Levels 2-22-16
Oil prices rise on low U.S. rig count, firmer stock markets
Oil prices rose on Monday as a fall in U.S. oil drilling rig numbers lifted the prospect of lower crude production and a bounce in stock markets encouraged buying sentiment.
U.S. crude futures CLc1 rose above $30 a barrel, gaining 95 cents to $30.59 a barrel by 0956 GMT, or 3.2 percent. International benchmark Brent LCOc1 was up 89 cents at $33.90 a barrel.
Global stock markets extended last week’s gains, bringing a more upbeat tone to commodity markets.
Looking for bottoms in oil prices and the stock market? Keep looking…
The final dispatches of an already-dead earnings season and another batch of Fed blather may sway investors’ mood in the week ahead. But perhaps even more relevant to the stock market’s odds of building on last week’s big push — the best of the year so far — is oil’s next move.
Typically, the stock market and crude oil don’t exactly dance to the same beat. Logic would point to falling fuel prices = lower costs = improving profit. Stocks win. But this market is anything but logical, and the two asset classes are locked in a rare bit of correlation lately. In fact, Eric Bush of the Gavekal Capital blog points out the two haven’t been this linked since 1980.
Crude oil futures – weekly outlook: February 22 – 26https://t.co/Wabk2sg1II
— DT Street Report (@DTSR01) February 22, 2016
Chart Reading the SPY ETF
SPY price action is set to test the $194 resistance level. The 50 sma is @ $195.37. Upside potential for a new long, on a higher open is not good. If you’re trading short-term, a lower open, push lower off the open price, sets up a better reward potential for today.
(click the chart for a full view)
Technical Analysis | Charts of Interest
$HCN on finviz.com
#HCN | Welltower Inc showing a perfect bear flag on the daily charts into the 20 ema resistance level. The weak close off the high suggests the short-covering is done, today sets up a new short-sale. A test of Friday’s high would be the ideal spot to look for an entry.
(click the chart for a full view)
Stocks to Trade 2-22-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: XON, ADSK, UAL, NBL, VMW, GPN, CRUS, SWKS, PXD, ETP, LNG
Negative last 20 and 5 trading days | closed 2% lower from the open: egn, dvn, trn
Quarterly Order Flow:
Bullish Stocks to Trade: CRUS, HON, VNTV, JNJ, KMB, NEE, CAM, PM, ITW, LULU, XOM, TSN, MMM, ED, CHRW, KORS, AEM
Bearish Stocks to Trade: vrx, tmus, eg, wrk, uri, cop, ba, gild, nxpi, mon, endp, cern, nfx, lly, agn, aig, wdc, gs, esrx, amt, ctsh, pru, nvs, c, [nc, adbe, acn, trip, lnkd, mpc, crm, now, hcn, vtr, rcl, myl, vrtx, amzn, wnr, ea, vlo, atvi, tso
2x Normal Volume: CXO, JWN, BAX, VFC, DE, EQT, ADT, TRGP, TOT, TSO, EGN, TEX
Inside days: t, vz, wmt, orcl, emc, pg, dis, cf, nbl, ibm, jblu, wfm, tgt, wynn, wdc, nov, swks, aer, lnkd, gpor, dish, amt, dltr, kss, cost, panw, cci, bbby, txt, cpb, ncr, dnkn, anf, qihu