Stock Market Bears Smell Fear

The stock market is poised for one hell of a ride today (as of 6am)…

Volatility typically leads to contraction but in this global market we aren’t trading off one companies balance sheets. This is a much bigger story. So that means We should see historic volume and price swings today. The stock market bears smell fear and are out in full force. The rookies are looking for a dead-cat bounce.

Not a question the stock market is over-sold. The question you need to ask before the stock market opens is whether or not you want to ride the roller-coaster, or watch it from the sidelines.

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Day Trading Game Plan: The SPY ETF Chart

Stock futures (6am EDT) are set to open much lower again this morning. If you aren’t a day trading veteran I would sit the morning out. If you are, the volatility is great. Swing traders have a different game plan. If you are long, you are hoping. Not a good game plan. If you are in cash looking to buy, you are also hoping (not a good plan) for a bounce because the market is not a buy.

I could see scaling into a position because you believe in a reversion to the mean type strategy, from what I read over the weekend, you will not be alone.

(click the chart for a full view)

Stocks to Trade | Monday August 24, 2015

Pete’s Notes:

China down big.
US Futures down big.
Let the dust settle this morning before you make a trade.

Charts in Focus

The TJX Companies Inc, TJX

TJX held up well during the selling on Thursday but followed the herd on Friday. If you are looking for a strong stock to bid, this was a healthy breakout and gap last week to consider.

(click the chart for a full view)

Earnings in play today > 1M avg shares: QIHU

Bullish Ideas ATR/Volume/Price: BXLT, TJX, NEE

Bearish Ideas ATR/Volume/Price: yelp, qrvo, viab, gmcr, juno, bidu, feye, gpro, scty, biib, swks, myl, sndk, wynn, dvn, baba, cvx, twx, rrc, bhi, hal, kss, cof, hot, gs, xom, apa, uri, utx, mar, mon, unp, apc, mmm, cat,

Weak Stock Weak Close: aapl, msft, intc, wfc, ms, hal, gm, xom, qcom, orcl, cvx, wmt, pypl, pg, de, cop, scty, txn, csx, gps, unp, bp, wfm, nov, utx, bby, apc, cnq, dvn, mos, m, yelp, apa, bhi, amtd, mon, ca, epd, ip, rax, a, wynn, mur, uri

Strong Stock Weak Close: BXLT, DHI, MAS, SYY, TJX,

Weak Stock Strong Close: isis, jd, lng, sina

Strong Stock Strong Close:

20 day Breakdown: AAPL, INTC, MSFT, PFE, NFLX, wfc, ms, hal, jpm, gm, xom, gild, sbux, qcom, cvx, wmt, pg, de, cop, scty, aig, rost, vlo, mpc, txn, kr, schw, feye, gps, unp, bk, wfm, cvs, amba, ma, nke, ba, hon, bby, apc, ua, tsla, amgn, sti, tso, mon, cma, aer, goog, pru, hog, pnc, acn

20 Day Breakout: BRCD, DUK, EIX

2x Normal Volume: AAPL, MSFT, GE, FB, CSCO, WFC, DIS, MA, BABA, HAL, KO, XOM, GILD, SBUX, CVX, JNJ, WMT, VZ,

Watch List Longs: TJX, LOW, TOL, LEN

Watch List Short: cvx, dis, bhi, cop, hal kss, bmy, all, bby, wmt, sndk, wynn, m, lvs, dd, klac, txn, intc, lltc, DE, SCTY, CRM , ROST, VLO, MPC, BX, CAT, MCD, HD, GPS, SYMC, MAT, YUM, AMBA, WBA, MA, NKE, BA, HON, D, UA, CCE, UPS, MMM, ADI, GS, LLTC, TSO, AMTD, GOOG, GOOGL

Inside days: crm, wec, vtr, gmcr