Day Traders Seek Answers Amid New Market Paradigm

Jesse Livermore

Jesse Livermore

Veteran day traders are scratching their head…

For those stock traders who began trading after say…2007 – you were born into a different trading world. Gone are the days of trading out of a bad position. The stock market had a back-and-forth flow. Today we pick a direction and the train goes without catching it’s breath.

This means you need to be more disciplined than ever. There is little room for the lazy trader. Straight up and straight down is new. Admit it, or not, it’s here to stay.

So what do we do?

We adapt. There will always be change in the market. You get more definite. You add more criteria. You plan to enter the same trade twice, often.

What you don’t do is whine about it. Get tough, pay attention and adjust.

This is the same conversation we had in 2001 when stock quotes went from fractions to decimals. We thought volatility was gone when trading in pennies, it simply create different opportunity.

The glorious shift in the way stock prices behave should be exciting, trends now last for days and weeks without a pause.

This is simply awesome for some. Frustrating for those not adapting. Those frustrated are saying “It can’t go higher…” Oh yeah? Read Reminiscences of a Stock Operator, he talks about this same false belief in 1923.

If you need some help leave a comment below…

Pete

Trading Podcast Downloads

Pete’s  Day Trading Notes:

  • Trend following systems are in heaven right now. Traders using over bought indicators going crazy.
  • Financials “should have” sold off hard and did not. Trade the price action not the news.
  • VXX a teenager again. Increase your share size ATR’s have gone down.

The Fed is crushing the dollar — and that’s great for stocks

The brutal U.S. stock-market selloff that dominated the first six weeks of the year has been erased — and investors might have the dollar to thank for that.

Slowing global growth, worries about a sharp devaluation in the Chinese yuan, stubbornly low oil prices, and the Federal Reserve’s decision to raise interest rates in December are all factors that investors have blamed for the turmoil in global markets this year.

But the market’s reaction to the outcome of Wednesday’s Federal Reserve meeting perhaps revealed the true culprit: the strong dollar.

“A lot of the market convulsions looked like they were coming from independent things. But they all had a common denominator and that’s the dollar,” said Binky Chadha, chief global strategist at Deutsche Bank, in a phone interview.

Continue reading on marketwatch.com

Stock Market Today: Map of the S&P 500

(click the map for a full view)

spy map 18

Day Traders Seek Answers Amid New Market Paradigm 3-18-16

Dazed dollar steadies, shares on best run in two years

World shares headed for a fifth straight week of gains, their best run in over two years, on Friday, as this week’s thumping for the dollar, soothing central bank noises and a 2016 high for oil, boosted confidence.

Europe opened with the euro under pressure as the dollar got back to its feet after a third week of falls that has seen it slide 4 percent against its main counterparts to its lowest since October.

It has come as the Federal Reserve has scaled down its rate hike expectations and European Central Bank chief economist Peter Praet showed his unease about the resulting euro jump with a bit of verbal intervention.

Continue reading on reuters.com

Chart Reading the SPY ETF

$SPY now positive from the open, 20 out of 27 days. An incredible run, especially coming of the lows. The trend is your friend until the end when it bends.

(click the chart for a full view)

spy chart 3-18-16

Technical Analysis | Charts of Interest

$WYNN on finviz.com

3 Stocks Insiders Are AGGRESSIVELY Buying (JPM, WYNN, Z)

High-profile insiders at JPM, WYNN and Z have made huge bets on their respective companies in 2016.

Perhaps nothing instills more confidence in the minds of investors than company insiders using their own money to buy shares of their company’s stock. That’s why shareholders of JP Morgan Chase & Co. (JPM), Wynn Resorts, Limited (WYNN) and Zillow Group (Z) must be thrilled to see the massive insider buying by top insiders at the three companies in recent weeks.

JPM stock JPMorgan Chase NYSE:JPM JPM stockLet’s take a look at which top insiders are buying and what their big investments might mean for JPM, Zillow Stock, and Wynn Resorts shares.

Continue reading investorplace.com 

$WYNN broke a long-term down trend on 3-8-16 and is primed to start a new leg higher. The $89 level is the hurdle, $104.76 is the target.

(click the chart for a full view)

$WYNN chart

$WYNN chart 3-18-16

Stocks to Trade 3-18-16

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: FDX, SLCA, OLL, ATI, EMR, USG, DO, CLR, CAIQ, ETN, CIT, WRK, CRZO, UNP, VMW FAST, IR, SWHC, WYNN, LRB, URI, DHR, BA, MON, JWN, DD, NKE, CAT, TSLA, AVGO, AMT,

Negative last 20 and 5 trading days | closed 2% lower from the open: vrx, endp, rh, lly, myl, mnk, esrx, teva, cnc, mck

Quarterly Order Flow:

Bullish Stocks to Trade: FDX, SLCA, PXD, CMI, WYNN, LYB, NKE, CAT, DE, AVGO, HON, FSLR, CVX, IBM, VTR, CHTR, LVS, CB, HP, NEE, PSX, MAR, TGT, AEM, KMB, MMM, YUM, LOW,

Bearish Stocks to Trade: vrx, endp, rh, lly, myl, mnk, esrx, teva, cnc, mck, bmy, cah vrtx, lnkd, agn,

2x Normal Volume: VRX, ENDP, LLY, CTRP, TEVA, EMR, SLCA, FDX, MNK, BHI, AGN, SHPG

Inside days: kr, nvda, mnk, dal, rai, luv, mcd, aal, low, dg, expe, lnkd, kors, anf, akam, adsk, cost

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