How to Day Trade Challenging Markets | Stocks to Trade 12-8-15

How to Day Trade Challenging MarketsThe 2015 stock market is not place for those looking for action. You will be destroyed.

Day trading this challenging market requires patience. This means patience to actually sit down and create a trading plan, and patience to wait for opportunities that match your edge.

The amount of emails I receive asking to comment on trades in the middle of nowhere is staggering. If you can’t answer a simple question about your stock, you need training.

What is that question? Are the buyers or sellers clearly in charge?”

It’s simple but don’t be deceived, it works. If it takes more than 2 seconds to answer you should not consider the stock for a day trade. You want obvious, and then you want room-to-go (profit potential).

If you have a clear answer, then you need to read the tape. How far has the stock moved the last 3-5 days? Are there doji candlesticks or large red or green bodies? This will tell you if the institutions are active. Are you outside of yesterday’s range? If so, is the change from the open in sync with yesterday’s breakout?

Consistency comes from your plan, not the market. No matter how challenging this market may seem, day traders can make money with a clear strategy.

Can you explain your edge in one paragraph?

Stock Market Today: Map of the S&P 500

(click the map for a full view)

How to Day Trade Challenging Markets

 

Day Trading Game Plan: The SPY ETF Outlook

The $SPY continues to be a two-way-street. The 2015 resistance will not be broken without a significant catalyst. Inside day looking for a trend day that closes at an extreme.

(click the chart for a full view)

How to Day Trade Challenging Markets

 

Pete’s Notes:

  • Energy pounded, still a sell-short.
  • The financials have no bias. A day trade at best, if you want to dip your toes there at all.
  • Will TWTR break support and make a run lower to $20?
  • Still in day trading mode. To have a long-term bias in not prudent trading. You are guessing.

Charts in Focus

DAL Delta Air Lines, Inc.

Airlines are getting a boost from the decline in oil. This breakout needs to get above $52 and hold for at least one day.

(click the chart for a full view)

 

How to Day Trade Challenging Markets

How to Day Trade Challenging Markets

How to Day Trade Challenging Markets | Stocks to Trade 12-8-15

Relative strength yesterday compared to the SPY negative change from the open: NWL, LULU, DAL, MOS, JAH, VIPS, QUNR, TMUS, DUK, KMI

> 20sma | positive week | closed 2% higher from the open: NWL, LULU, DAL, MOS, JAH, QUNR, DUK

<20sma, negative last 5 days and closed 2% lower from the open: wmb, oke, wpz, sm, paa, cldx, clr, rrc, lyb, pxd, eog, nov, lng, fti, bhi, apc, uri, hp, amba, feye, wwav, gs, dks, abbv

Bullish Ideas ATR/Volume/Price: QUNR, UAL, EL, DLTR, AVGO, TEVA, COST, NKE, AMZN, WTW, HD, PNC, GOOGL, CRM, CTRP, ADSK,

Bearish Ideas ATR/Volume/Price: wmb, oke, wpz, sm, clr, rrc, etp, pxd, thc, eog, lng, apc, uri, hp, cop, amba, xpo, apa, oxy, cvx, cf, xom, gs, cat, mar, nfx, aka, abbv, unp, cmi, jwn, gild, mbly, ua, car, gme,

Weak Stock Weak Close: wmb, oke, wpz, sm, clr, rrc, cnq, se, eog, nov, lng, fti, apc, uri, hp, zion, amba, wwav, gs, dks, twtr, abbv

Strong Stock Weak Close: SRPT, NFLX, CFG, ADSK

Weak Stock Strong Close: tmus, usg

Strong Stock Strong Close: QUNR, NWL, JBLU, DAL

20 day Breakdown: wmb, oke, wpz, sm, paa, dvn, clr, etp, pxd, eog, nov, lng, apc, epd, psx, hal, mpc, hes, oxy, cvx, wwav, nfx, unp

20 Day Breakout: DAL, JAH, NWL, TEVA

2x Normal Volume: KMI, GMCR, WMB, EPD, ETP, LNG, CVN, APC, WPZ, PAA, MOS, JAH, NWL, JWN, RULP, OKE, PXD

Watch List Longs: GE, KO, JNJ, HD, MCD, COST, PNC, T, MSFT, INTC, DAL, LUV, BRCM, TXN, LOW,

Watch List Short: hal, xom, cvx, cop, slb, axp, adm, m, lvs, akam, nue

Inside days: ge, msft, pfe, wfc, fb, c, yhoo, ko, jpm, wcom, aig, ms, nvda, m, ebay, schw, gild, met, hd, pypl, utx, ctsh, lvs, cl, sti, pm, gs, hrb, wynn, ibm, low, esrx, amba, crm, aet, ma, aem, de, adi, rost, ua, mmm, jbl, googl, akam, yelp

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