The simplest trades often produce the best ROI…
When stocks consolidate, or more specifically, trade inside the previous day, our game plan is to look for an expansion in volatility, but not call direction. We are looking for the inside day to break out, and give us a trend day.
The key to executing this trade for solid gains today is waiting for the stock to tip its hand on direction. If the stock has a clear trend, you would expect it to break out in that direction, but that is not the case with this trade setup.
You are literally changing strategies from trend trading to breakout trading. Look for an expansion from the inside day.
Today we have a large list of stocks that meet this criteria.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
Day Trading Game Plan: The SPY ETF Outlook
The $SPY continues to test 50 SMA support. Topping tails the last 3 days leads me to believe we are headed lower.
(click the chart for a full view)
Pete’s Notes:
- Inside days rule.
- Financials need the FED to find buyers, sad.
- Oil headed lower.
AAPL market cap is amazing but its market has changed. I am not saying the stock will collapse, but the days of amazing bull runs are over. just ask MSFT.
(click the chart for a full view)
SPY Breaks Support 12-11-15 | Stocks to Trade
Relative strength yesterday compared to the SPY negative change from the open: NEUTRAL CHANGE FROM THE OPEN
> 20sma | positive week | closed 2% higher from the open: AMBA, MYL, DAL, VRX, YELP, SCTY, ANTM, PXD
<20sma, negative last 5 days and closed 2% lower from the open: etp, epd, rrc, ftnt, mos, rax, lvs, ctrp
Bullish Ideas ATR/Volume/Price: LRCX, VLO, QUNR, COST, AVGO, BABA, FL, EL, HD, DLTR, GOOGL, AMZN
Bearish Ideas ATR/Volume/Price: etp, rrc, lvs, cf, lyb, wpz, gme, paa, nee, nee, slb, ua, abbv, utx, unp, xom, cof, cmi, mar, oke, dvn, hot, gild, oxy, cat, gs, apc, adi, lulu, cop, lng, car, wmb,
Weak Stock Weak Close: etp, epd, ed, rrc, ftnt, mos, rax, lvs
Strong Stock Weak Close: TEVA
Weak Stock Strong Close: clr, xpo, cnq, nbl, apa, nue, wmb, car, thc, cop, lulu
Strong Stock Strong Close: DAL
20 day Breakdown: etn, ftnt, gme, utx
20 Day Breakout: ABC, DAL, FL, KSS, TSN
2x Normal Volume: MW, KMI, FTI, BHI
Watch List Longs: KO, JNJ, HD, MCD, BMY, GE, COST, VLO, DAL, BRCM, INTC
Watch List Short: adm, slb, bby<30, xom, axp, cop, lvs, m, c, ntap, tol, akam,
Inside days: msft, aapl, fb, intc, yhoo, ko, jpm, kr, qcom, wmt, ms, luv, pg, v, aal, bp, gild, mur, mat, dis, met, mgm, sbux, jblu, nvda, twx, mdt, abt, axp, wynn, schw, gps, nov, hd, esrx, jci, cost, cfg, cvs, dfs, cbs, amzn, dg, urbn, low, gsk, nke, pwr, stt, mon, psx, jbl, ir, cof, rost, xlnx, etfc, wdc, gs, kors, mbly, azn, amtd, ua, skx, googl, len, uri
Sector Rotation
