Day traders got a gift yesterday, it was a day to get paid…
If you messed it up, it’s because you missed the little things.
In the mentor room I spent a lot of time discussing how shorts were trapped. The close into the low on Monday with strong volume, and the higher open yesterday was a perfect trap.
Why does that happen? That’s the wrong question…
The right question is what do I do about it… If you were short, you waited for the opening range to form looking for the market to break lower. (see chart of the open range). This was the correct trade management. Where day traders got into trouble is when the VXX broke lower and the $SPY broke higher.
Day traders needed to forecast the price action that screamed “iceberg!!” The problem wasn’t the short, the problem was not getting out. Once bearish traders were trapped, we now had two sides with a desire to buy, shorts who were covering and new longs.
I spent 15 minutes describing this one set up pre market. Make sure you go deeper in your analysis. The entry is not where your profits are hiding. Learning to build a great argument is how you get paid, and become a pro.
If you need some help leave a comment below…
Pete’s Day Trading Notes:
- Financials finally break out of bottoming channel. This certainly helped the bullish trend in the stock market.
- Scan for stocks that are just breaking out.
- Yesterday was a great example of one side of the market being caught on the wrong side of the trade (shorts).
Stock Market Today: Map of the S&P 500
(click the map for a full view)
Day Traders Pay Day Finally Arrives 3-2-16
— CNBC (@CNBC) March 1, 2016
Chart Reading the SPY ETF
$SPY price action finally paid patient day traders. It was hard to mess up unless you have an itchy exit finger. $200 and then $202.62 are the next targets.
(click the chart for a full view)
Technical Analysis | Charts of Interest
$LVS on finviz.com
Clean breakout in LVS on nice volume. After its recent rally into the $50 level, it needs to pause here for a day or two before another run into the profit target of $57.34.
Las Vegas Sands, MGM, Wynn Jump As Macau Recovery Nears
Macau Gaming Inspection and Coordination officials said gambling revenue dipped 0.1% last month to 19.5 billion patacas ($2.4 billion), the smallest decline in 20 months and well above analyst consensus for a 2%-10% drop.
Macau went into a deep slump, starting in mid-2014. A broad crackdown on corruption by the Chinese government kept some gamblers away from casinos, and a smoking ban and the slowdown of China’s economy all combined to knock Macau’s economy down.
Union Gaming analyst Grant Govertsen said in a report Tuesday that “February was shaping up well and it delivered.” continue reading on investors.com
— Yahoo Finance (@YahooFinance) March 1, 2016
Las Vegas Sands (LVS) Stock Closed Higher on Macau Gaming Revenue
NEW YORK (TheStreet) — Las Vegas Sands (LVS – Get Report) stock advanced by 4.93% to $50.66 in Tuesday’s trading session, as Macau revenue declined less than expected in February.
Gross gaming revenue in gambling hub Macau fell by 0.1% to $2.4 billion in February, Bloomberg reports. Analysts were anticipating a 2% drop…
Continue reading on thestreet.com
(click the chart for a full view)
Stocks to Trade 3-2-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: WDAY, PRU, PXD, STX, SWKS, NFLX, YUM, PSX, LVS, ADSK, WRK, HON, STT, TIF, AAPL, EXPE, BMY, MA, HCN, DISH, AVGO, FDX, TGT, SLB, V, LRCX, AMT, SNDK
Negative last 20 and 5 trading days | closed 2% lower from the open: rh
Quarterly Order Flow:
Bullish Stocks to Trade: PSX, LVS, ADSK, BIDU, HCN, DD, AVGO, TGT, LRCX, GPN, WYNN, TRV, CAM, ETN, DLTR, NKE, UAL, JNJ, UPS, TJX, MMM, DHR, DAL, KORS, KMB, LULU, FSLR
Bearish Stocks to Trade: rh, ar, nbl, lnkd, vrx, eog, teva, endp, lly, fl, myl
2x Normal Volume: VRX, MDT, KATE, WDAY, ENDP, LLTC, AR, DLTR
Inside days: [fe, xom, endp, abt, myl, teva, anf, rost, pm, jnpr, fl, mbly, bhi, tjx, lulu, cern, cvc, yelp, kmb