Day Trading Light Volume Days Requires Experience

Day trading is easy to learn, it takes time, and many trades to master.

Learning when NOT to trade is as important as learning to to make money. Yesterday’s price action was one of those days. A good day in the $SPY is over $100 million shares traded. This not a rule but more of a barometer. If the market has a big day, you want to know if institutions are involved.

Yesterday, March 14, 2016 the $SPY traded 74.5 million shares, a very light day. Light volume days are very tough because follow through is sporadic at best.

You feel like your stock is a helium balloon, bouncing everywhere but nowhere. To avoid these types of market traps, it’s best to trade the same basket of stocks over and over again so you learn them. You learn how they trade when they are slow and when to step on the gas.

If you need some help leave a comment below…

Pete

Trading Podcast Downloads

Pete’s  Day Trading Notes:

  • A decline in the stock market would be healthy. Let’s refrain from panic if the market trades lower for a day or two.
  • $SPY decline to $197 is my call. Look for a new spot to bid a swing trade in that area.

Five Things You Need to Know to Start Your Day

#1 Markets are down

Markets in Asia dropped following the Bank of Japan decision with the MSCI Asia-Pacific Index down 0.8 percent while stocks in Europe fell from a two-month high and were 0.9 percent lower at 9:40 a.m. London time, with miners leading the delines. S&P 500 futures were 0.5 percent lower.

#2 Continue reading on bloomberg.com

Stock Market Today: Map of the S&P 500

(click the map for a full view)

spy map 15

Day Trading Light Volume Days Requires Experience 3-15-16

Futures slip after BOJ comments; Fed in focus

U.S. stock index futures were lower on Tuesday as the Bank of Japan’s gloomy view about the Japanese economy troubled investors ahead of the U.S. Federal Reserve’s two-day policy meeting.

The BOJ left unchanged the negative interest rates it adopted in January, but lowered its assessment of inflation expectations to say they were “weakening recently,” suggesting it may increase its stimulus program.

Global markets fell and the yen rose as investors sought traditional safe havens. Oil prices continued sliding on mounting fears that a recent rally had run its course as the global glut showed no signs of abating soon.

Continue reading on reuters.com

Chart Reading the SPY ETF

$SPY close above the 200 sma is cause to celebrate but we don’t have room-to-go. The gap fill from 12-31-15 looms as resistance and the FOMC is in the background. Expect to be stock specific this week, or at least until after Wednesday.

(click the chart for a full view)

spy chart 15

Technical Analysis | Charts of Interest

$EXPE on finviz.com

$C Citigroup inside week last week followed by an inside day on Monday. Looking for a trend day today. Hold to close

Citi (C) Focused on Expanding Credit Derivatives Business

Citigroup Inc. C is reportedly expanding trading in credit derivatives. According to a Bloomberg report, over the past few weeks the New York-based banking giant has extended its offerings in total-return swaps (TRS) to include investment-grade debt.

Citing unidentified people familiar with the matter, the report stated that Citigroup commenced selling TRS linked to London-based financial-information company – Markit Group Ltd.’s high-yield bond index

Read more

(click the chart for a full view)

c

Stocks to Trade 3-15-16

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: SCTY, TRIP, GME, WRK, ATVI, MPLX, CTSH, PCAR, EXPE, NFX, CLR, CXO, APC, DVN

Negative last 20 and 5 trading days | closed 2% lower from the open: aem

Quarterly Order Flow:

Bullish Stocks to Trade: HOT, IONS, MAR, LVS, EXPE, VTR, KMB, MCD, UAL, LRCX, DG, LOW, CVS, AET, ACN, TJX, LULU, UPS, CBS, HD, ADSK, UNH, KORS, MMM, TGT, LVLT, CB, PSX, CAH, HON, BIDU, WYNN

Bearish Stocks to Trade: vrx, endp, rh

2x Normal Volume: HOT, DDD, TRIP, MAR

Inside days: pfe, ms, c, wfc, dv, nflx, hal, v, wmt, celg, met, apa, abbv, mpc, ma, dow, dhi, tso, cf, lly, dd, len , tsn, yum, wynn, mbly, ua, psx, hcn, hog, kmx, tol, kss

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