Today’s stock market opening action presents a unique trading scenario…
Stocks are “well-bid” now for three consecutive days and closed on the highs. This type of price action is nearing a saturation point. This means institutions step off the gas and let stocks breathe for a day or two.
The type of open day traders get will dictate the trade for the morning. If we get a push higher off the open, yoo should be looking to book profits into the $202 area. You should not be looking for a strong close today.
If we get a lower open and the first push off the open is lower, you look for an entry signal long and look for yesterday’s high as your target.
The market sets up a nice swing like this every 3-5 days. Sometimes its obvious, like it is today.
When you learn to make the transformation from chart reader, to tape reader, you will have the guts, and skills, to call exactly what you expect to see happen on the open.
If you need some help leave a comment below…
Follow Tim Anderson on Twitter: @TJAnderson1
Pete’s Day Trading Notes:
- The big blue line is up this week, today is different. Time for profit-taking into the weekend.
- $AAPL new 2 month high. Needs to pause before a new leg higher.
- Financials holding recent breakout levels. A good sign for bullish traders.
U.S. stock futures in a holding pattern ahead of jobs report
U.S. stock futures on Friday switched between small gains and losses, as investors braced for a much-anticipated jobs report and the market looked set to notch its third straight weekly gain.
S&P 500 futures ESH6, +0.15% traded flat at 1,990.50, while Dow Jones Industrial Average futures YMH6, +0.18% inched up by 1 point, or less than 0.1%, to 16,920. Nasdaq 100 futures NQH6, +0.30% edged higher by 0.25 point, or less than 0.1%, to 4,320.50.
The February report on U.S. nonfarm payrolls is due at 8:30 a.m. Eastern Time, and economists polled by MarketWatch expect the American economy added 195,000 jobs in February as the unemployment rate stayed at 4.9%.
“Today’s jobs report is the key,” said Nour Al-Hammoury, chief market strategist at ADS Securities, in a note.
Traders should first look at whether there are any revisions to the January data, especially in wage growth, he said. Any downward revisions “could see safe haven assets add further value,” Al-Hammoury said.
Continue reading on marketwatch.com
Stock Market Today: Map of the S&P 500
(click the map for a full view)
SPY Chart Pattern Shows Reversal Day Ahead 3-4-16
Stocks Reverse To Close Higher; Tesla Drives On
U.S. stocks shrugged off mixed economic data and staged a reversal Thursday to close with mild to modest gains ahead of Friday’s closely watched employment report.
The S&P 500 and Dow Jones industrial average each ended with a 0.3% advance, while the Nasdaq climbed 0.1%. Volume was higher across the board in the stock market today, according to preliminary figures. Winners topped losers by a 3-1 ratio on the NYSE and about 3-to-2 on the Nasdaq.
Stocks started off slightly lower, as weekly jobless claims came in slightly higher than expected. The Institute for Supply Management’s Non-Manufacturing Index for February was above forecasts, though it fell for a fourth consecutive month to a two-year low.
Telecom, supermarket and medical stocks lagged. But energy, gold miners and automakers outperformed. West Texas intermediate crude oil was nearly unchanged at $34.64 a barrel.
Broadcom (AVGO) jumped 7% in extended trading after reporting its fiscal Q1 results. The chipmaker’s stock edged 0.3% higher during the regular session.
Tesla (TSLA) sped 4%, retaking its converged 50-day line in about average volume. The electric-car maker’s stock has rallied nearly 40% from its Feb. 9 intraday low, but is still 31% off its 52-week high. Stifel said it remains bullish on the long-term outlook for Tesla, according to Barron’s. Stifel has a buy rating on the stock.
Continue reading on investors.com
— Hedgeye (@Hedgeye) March 4, 2016
Chart Reading the SPY ETF
$SPY set to test $200 on the open. A push higher off the open price sets up a profit-taking in the $202 area.
(click the chart for a full view)
Technical Analysis | Charts of Interest
$AAPL on finviz.com
A solid advance in $AAPL out of a trading range with plenty of news. Let’s see if it can hold $100 and new two month highs.
Apple Needs A Better Mac To Power Oculus Rift Says Founder
— Benzinga.com (@Benzinga) March 3, 2016
(click the chart for a full view)
Stocks to Trade 3-4-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: MUR, APA, HFC, THC, PBF, TRGP, COP, KMX, WPZ, TSO, CF, URI, OKE, WYNN, TSLA, MDVN, PCAR, MJN, CAT, PAA, WDAY, CLR, LVS, DLPH, PANW, MCK, BHI, STX, HES, DE, WRK, TIF, CMI, SWKS, PRU, LVLT
Negative last 20 and 5 trading days | closed 2% lower from the open: cern, ctrp, vrx, mnk
Quarterly Order Flow:
Bullish Stocks to Trade: PBF, WYNN, PCAR, LVS, DE, PSX, HON, HD, UPS, FSLR, UAL, AMT, ADSK, EIX, LRCX, DHR, BIDU, ROST, BMY, CHRW, KMB, MMM, TJX, JNJ, DD, ITW, CCI, KORS, TGT
Bearish Stocks to Trade: mnk, vrx, ctrp, cern, lnkd, endp, teva, amgn, lly, myl, fl, mon, rh
2x Normal Volume: KR, JOY, CNQ, SCTY, TGT, COST, CERN, TEX
Inside days: dd, dow, anf, lly, myl, lyb, nee, kors, mbly, lnkd, dhr, akam, bidu, k, fslr, uan, vrtx, lrcx, a