Home Depot Earnings | Trading Game Plan May 19, 2015

Trading Game Plan

It’s clear any selling is profit taking…

This means traders need to stop looking for reasons the market is drifting higher and continue to be long. It can be tempting to game plan the short side but it’s nothing more than “in case of fire break.”

The obvious question from a new trader would be “why would anyone look to be short? The market keeps going higher.” This is a good question but it’s asked from inexperience. I’m not going to say we are in a bubble because there has not been a parabolic move, but look back 100 years.

A normal market has periods of profit taking that last more than 2 days. History (and natural market reactions) are the norm. This has been a better stock market for swing traders. Holding for multiple days has been the easier trade to manage without needing to be ultra specific.

Home Depot Earnings Top Revenue Estimates

home depot

Home Depot posts earnings of $1.16 a share vs. $1.15 expected.

Home Depot, the world’s largest home improvement chain by sales, delivered quarterly earnings and revenue that topped analysts’ expectations on Tuesday, as customers in North America spent more on home repairs after a harsher-than-usual winter.

Home Depot shares traded lower in premarket trading immediately following the announcement  The home improvement giant posted first-quarter earnings excluding items of $1.16 per share, up from 96 cents a share in the year-earlier period.

Stocks to Trade |Tuesday May 19, 2015

Pete’s Notes:

  • Casino stocks continue to get battered. One of the few comfortable short-sales on the board. If you are a day trader, I would wait for a pause before shorting again.
  • SNDK continues to coil. Looking for an expansion in volatility and a few trend days in a row.
  • M is a sell-short today on a higher opening

Interesting Chart Lessons:

stock market

Earnings in play today > 1M avg shares: ADI, ADSK, HD, QIHU, TJX, VOD, WMT

Bullish Ideas ATR/Volume/Price: TSLA, YUM, CBI, TASR, CTRP, SCTY, VRX, TSO>95, SWKS, IBM, AET, AAPL, GS, JPM

Bearish Ideas ATR/Volume/Price: akrx, apc, apa, bidu, endp, kss, rrc, us wdx (pennant)

Weak Stock Weak Close: slca, tck

Strong Stock Weak Close: CSIQ

Weak Stock Strong Close: ddd, mu

Strong Stock Strong Close: ACAD, AMTD, CBI, CTSH, ETFC, FHN, IDTI, SWKS

20 day Breakdown: bax, endp

20 Day Breakout: ATML, BBBY, CBI, DTV, M

2x Normal Volume: Endp, Csiq, T, Bax, Dtv, Scty

Watch List Longs: ABT, ADM, AET, HON, MET, PM, MO, CSCO, AKAM, ADBE>80, BRCM, JNPR, NEM

Watch List Short: dd, kss, sun, all, tgt, wynn, amat, glw

Inside days: COF, WFC, AKAM, UTX


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