Stock Futures Tumble Ahead of Bank Earnings

 

Stock Futures Tumble Ahead of Bank EarningsWe spend a lot of time discussing risk versus reward.

A traders goal, is to justify the risk, in exchange for the potential profit. Yesterday was a great lesson in defining trade expectation.

A short-covering rally is fast. You need to make quick decisions. Buying stocks yesterday was the right trade, for yesterday. It is not the right trade for long-term success.

It is easier to earn money in the direction of the order flow. This means you are trading with the big money. Don’t confuse yesterday’s gift from the stock market as anything more than a momentum trade.

This means you are not building a position against the order flow, but simply trading it. These type of momentum trades have a shorter-lifespan. You need to know this BEFORE the trade.

Big money is earned, when you trade with the big money.

Stock Futures Tumble Ahead of Bank Earnings

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Stock Futures Tumble Ahead of Bank Earnings

Day Trading Game Plan: The SPY ETF Outlook

SPY traded into a one day short-covering rally. This means traders exiting shorts, it does not represent new buying. The market is still bearish. One day of trading doesn’t change that.

(click the chart for a full view)

Stock Futures Tumble Ahead of Bank Earnings

Pete’s Notes:

  • Earnings, China, oil and short-covering, make for a solid stock trading week. The stock market, especially for day traders, is giving plenty of opportunity this week. If you didn’t make money, your list of stocks in your game plan, is most likely too big.

Technical Analysis | Charts of Interest

M Macy’s Inc.

Accumulation

Macy’s down trend since early summer appears to be slowing down. Accumulation and a double bottom chart pattern are forming. The stock is seeing higher volume on positive days and is close to trading above the long-term weekly down trend and the important 50 period moving average on the daily chart.

(click the chart for a full view)

Stock Futures Tumble Ahead of Bank Earnings

 


Stocks to Trade 1-15-16

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: PAA, CTSH, ILMN, XOM, QCOM, CBS, ANTM, NLSN, GPOR

Negative last 20 and 5 trading days | closed 2% lower from the open: nfx, esrx, gme, ua, bbby, bwa, wynn, wdc, gnc, clvs, scty, mbly

Quarterly Order Flow:

Bullish Ideas ATR/Volume/Price: BXLT, LULU, NEE, KSS, MCD, PM

Bearish Ideas ATR/Volume/Price: etp, save, oxy, cop, psx, cvx, tso, celg, dvn, nbl, swks, hp, hes, cyh, clr, mpc, thc, hfc, tsla, cf, akam, cat, aapl, unp, kmx, mmm, ea, ma, eog, gs, cof, jpm, dow, fosl, aer, slb, stt, crm, dhr, dal, mar, lng, dis, ups, hot, apc, pru, utx, fl, bbby, ual, car, len, nwl, wdc, tgt, wynn, esrx, ua, bwa, amba, mbly, scty

20 day Breakdown: ba, adi, mxim, c, sti, apc, pru, dltr, utx, mjn, dg, etn, nke, bbby, ual, pep, tap, car, dlph, nfx, len, swhc, nwl, hd, wdc, csiq, tgt, wynn, vfc, mga, esrx, bwa, gme, gnc, bby, mbly, scty

20 Day Breakout: INFY, SE, PEG, AEP, XEL, T, CMS, ED, NEE, D, DUK, SO

2x Normal Volume: WSH, XOM, JPM, MBLY, BBY, COP, ESRX, APC, CLR, BRCM, HD, ACE, JCI, BXLT, CCL, NWL, RIO, HES, CTSH, MAR, DLPH, CAR, YELP, BWA, AMBA, PNC, TAP, MCHP

Inside days: msft, jpm, wfc, orcl, csx, usb, pg, jd, vlo, epd, symc, hes, etp, unp, axp, ma, ibm, hca, cvs, pnc, adsk, ctrp, ftnt, all, payx, qihu, nsc, cpb,

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