Converting your trading plan into a game plan is easy, the problem for most traders is they go off looking for trade ideas, that have nothing to do with their edge.
When you reduce this waste of time and money, you immediately become a better trader.
Today’s stock market gives us a great example of our need for focus. The major stock market averages are showing indecision. The SPY specifically failed at the $212 level again and is back into the 4 month trading range. (see chart below)
When this happens, your game plan should be much more stock specific. Instead of gauging the overall market, you should focus on similar stocks and order flow in that industry.
It’s OK to let the entire market dance around talks of interest rates and Greece (and now a soccer scandal- they still play soccer?)
Focus your money somewhere. Traders are not investors. When the big picture is obvious (and has room to go-profit potential) then you can stare at the indices.
For now be a stock picker.
Stock Market Averages: Top Pattern or a Pause?
We can easily make a case for the long-term trend. There is no doubt about that…but- the slightest hint of interest rates and the market needs a Mucinex to clear its throat.
Is the easier money long? Yes. Continue to trade strong stocks long. Be a buyer, it’s the right play.
However, we are starting to see a lot more trades with follow-through to the downside.
The reason why I am saying this, is a comment I heard from a trader in our Facebook Group, “where are the buyers?”
Too many traders are on one side of the boat, and are not even aware of the other side. “Iceberg, dead ahead…”
Day Trading Game Plan: The SPY
Stocks to Trade |Thursday May 27, 2015
- The main thing I will be looking for today is how price trades around the open price. We have been lucky that the market keeps finding buyers on a lower open. If today makes 2 out of 3 days the sellers stick around on a lower open, that will be interesting.
- We have noted the semiconductor stocks are strong and yesterday was the day to get paid. (chart of the SMH)
Interesting Chart Lessons:
- ALL Allstate, perfect trade: technical analysis does work. Never doubt your levels.
Earnings in play today > 1M avg shares:
Bullish Ideas ATR/Volume/Price: YOKU, HLF, SWKS, NFLX, GILD, CRM, FEYE, ESRX, MYL
Bearish Ideas ATR/Volume/Price: gmcr, wynn, qihu, ual, hes, clr, apa, nsc, nov, unp
Weak Stock Weak Close: anf, gmcr, kors,
Strong Stock Weak Close: CVC, YOKU
Weak Stock Strong Close: coh, luv, mrvl, ual
Strong Stock Strong Close: BRCM, IDTI, ALTR, SWKS, TMUS, FSL, XLNX, ADI, JNPR,
20 day Breakdown: anf, bax,
20 Day Breakout: LLTC, ABBV, JNPR, LO, SMH
2x Normal Volume: LO, RAI, COH, TOL, ABV, YOKU, MRVL, JNPR, AKAM
Watch List Longs: ADM, AET, JPM, PNC, HON, ABT, ADBE, INTC
Watch List Short: kss, hal sun, cvx, wmt, xom, trv, ntap, luv, glw, nue, tol
Pre Market Game Plan Meetings:
The only online meeting that delivers week-by-week progress.
Quickly improve your ability to pick winning stocks. Start your 30 day trial today.