Light Volume Trading Slowly Drains Your Account

Light Volume Trading Slowly Drains Your AccountIt’s tempting but I wont do it. The pressure is immense.

Running a mentoring room for stock traders comes with pressure to find trading ideas. Subscribers are paying you for ideas. Or are they?

Is that truly the goal of a mentor room?

I say no.

The goal is to do such an amazing job, that I am not needed anymore. At least for new ideas. The community will flourish when the group inspires each other.

Mentors who tout their stock picks are insecure. Demonstration of expertise speaks much louder than bragging.

Authority comes from the audience not the speaker.

When crafting a trading game plan to discuss with our members, it’s tempting to include stocks so we have additional stuff to review. I won’t go there. If the edge is low I will say it. Your goal is to make money, not simply place trades because the market opens.

To move closer to trading mastery, you need to spot a great stock trade from a mediocre one. That’s my job. To help you understand the difference, and then only allocate money to the best ideas.

If you can’t tell the difference, then every trade looks the same. Start with learning what the best trades look like, so you can reduce and eliminate everything else.

We are trading a light volume market right now. As light volume trading slowly drains your account, you need to wake up and realize you are in business. It’s not always busy.

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Light Volume Trading Slowly Drains Your Account

Day Trading Game Plan: The SPY ETF Chart

SPY price action continues to consolidate. Very close to 3 inside weeks forming a larger pennant chart pattern.  Tough to anticipate the breakout direction at this point. Too much indecision surrounding the FED.

(click the chart for a full view)

Light Volume Trading Slowly Drains Your Account

Stocks to Trade | Tuesday September 15, 2015

Pete’s Notes:

  • The list of trades continues to shrink no matter how much I tweak the scans.
  • SPY volume was light again yesterday.

Charts in Focus

CF Industries Holdings CF

CF broke minor support this week in the $54 area, has room to go to $49. Solid volume on a trend day lower. Should get follow through.

(click the chart for a full view)

Light Volume Trading Slowly Drains Your Account

Light Volume Trading Slowly Drains Your Account

Earnings in play today > 1M avg shares:

Stocks that showed relative Strength– contra to the SPY negative change from the open on 9/14/15: AMBA, BHI, BXLT, JD, KHC, LNG, MYL, WYNN

Above the 20sma, up for the week and closed 2% higher from the open: (not necessarily all longs, but stocks to note for the price action of strong close from the open and above the 20sma): BXLT, KITE, MDVN, SSYS, SYNA, XON

Bullish Ideas ATR/Volume/Price: CAM, LB, AVGO, SBUX, FB, AMZN, BXLT, UA,

Bearish Ideas ATR/Volume/Price: gpro, amba, qihu, wynn, fit, lng, cybr, mur, hp, clr, moc, wmb, baba, lulu, apa, dltr, dvn, nbl, cf, feye, de, apc, abbv, slb, dg, bidu, lvs, twx, amt, hal, cvx, mjn, fslar, ppg, etn, qrvo, gs, pxd, xom, cci, unp, lyb, wtp, utx, cop, cat, ibm, stx, oke, mmm

Weak Stock Weak Close: ar, cf, cog, cybr, ete, fit, fslr, mon, mpc, nue, paa, ppg, wpz

Strong Stock Weak Close:

Weak Stock Strong Close: aem, amba, jd, lng

Strong Stock Strong Close: JBLU, KITE, BXLT, EVHC, BBY, SRPT, RCL, CCL, HAS

20 day Breakdown: qihu, joy, hp, dltr, cf, bp, dg, nue, dd


2x Normal Volume: YNDX, CHS, MBLY, GPRO

Watch List Longs: BBY, SBUX, BRCM, AKAM

Watch List Short: abt, slb, pru, met, hal, wmt, cvx, ms, kss, xom, cop, ko,

Inside days: mur, amba, emc, wmb, nbl, gis, mchp, csx, dvn, v, do, cag, wdc, payx, stt, eog, ual, cien, twx, pru, slb, met, syy, jnpr, cat, ctrp, grub, m, hal, cam, mat, bx, hig, yum, teva, fit

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