The stock market held the bid on Friday, as price action remained above the 5 days of range bound volatility.
Our game plan for January 29 called for an aggressive momentum trade, outside of the $187-191 price action. If the $SPY stayed within those levels, trade expectation called for quicker, cash flow type trade management. The SPY close above the 20 sma on the daily chart was important.
Today we are looking at a lower open and oil is trading lower (6:30 am), if the market can climb back above that key level, the bulls may be able to breathe.
How to Game Plan Your Trades Each Morning
Mapping out this type of price action before the market opens, is a key to trading success. It’s important you have a model for the perfect trade, so you can identify your expectations for follow-through.
If every trade looks the same, your results will be random. Get specific, to get profitable.
Friday’s trading offered excellent day trading scenarios, because many stocks remained above the open price. This means buyers remained in control after the opening buy and sell orders orders that occur between the 9:30-10am trading window.
Tracking your stocks and the change from the open the first half hour after the stocks market opens, is an easy and effective trading plan any day trader can quickly learn to use profitably.
Pete’s Day Trading Notes:
- GOOGL earnings after the close. Will they become the world’s most valuable company?
- Friday’s strong close was an impressive display by the bulls, with solid volume. Was it more short-covering or new buying? Today’s trading will tell.
- $FB remains on my radar. It may need a day or two to pause.
- Inside day, two doji candlesticks and a lower close in $NFLX. Relative weakness to a strong stock market.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
–> Top 25 Proprietary Trading Secrets
$SPY breakout on impressive volume. If the bulls can step up, the price target for the week is $200.
(click the chart for a full view)
Stock Market Climbs Above Key Moving Average 2-1-16
Wild January stock market ends on a high note
Fear took over the American stock market in January — and the results weren’t pretty at all.
Even though the Dow surged 397 points on Friday, it still lost 5.5% of its value in January. That is the deepest monthly decline since the freakout of last August.
The Nasdaq fared even worse, sinking nearly 8%, its worst month since May 2010 when the infamous flash crash spooked investors.
January got off on a terrible note, with panic about the slowdown in China and crashing oil prices sending the Dow to its worst 10-day start to a year on record going back to 1897.
“Gut-wrenching drama” is how Peter Kenny, a veteran of turmoil on Wall Street, describes it. The independent market strategist pointed to “extreme fear” about the meltdown in oil prices and plunging stock prices in China.
Investors sold stocks of all stripes, including ones in the previously-booming tech world. Even Netflix (NFLX, Tech30), which skyrocketed 134% in 2015, plunged 21% in January.
Continue reading on money.cnn.com
What to Watch in the Stock Market This Week by fool.com
The major economic news of the coming week is due out Friday when the government releases its jobs report for the month of January. Payrolls are expected to rise by about 200,000, marking a slowdown from December’s 300,000 job gain. This announcement is especially important as it will inform the Federal Reserve’s decision on whether to keep up its projected pace of interest rate hikes.
But earnings updates will likely hold the market’s attention ahead of that report. Critical fourth quarter announcements are on deck from Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG),Exxon (NYSE:XOM) and Chipotle (NYSE:CMG) this week.
Monday, Feb. 1 — Alphabet as the world’s most valuable company
Google parent Alphabet kicks things off on Monday when the search giant is expected to post 15% higher sales and a 20% earnings pop to $8.10 per share. Alphabet shares are up over the last three months, bucking the negative market trend and putting it in position to steal Apple‘s crown as the world’s most valuable company.
Asia Stock Markets driven by BOJ’s negative Rates Call, Focus on China PMI via cnbc.com
Asia close mixed after data shows January fall in China factory activity:
Asia markets closed mixed on Monday, with major indexes in Australia, Japan and South Korea extending gains after the Bank of Japan’s (BOJ) surprise move on Friday to adopt negative rates sent stocks higher from Tokyo to New York.
In Japan, the Nikkei 225 closed up 346.93 points, or 1.98 percent, at 17,865.23 while the Topix gained 30.60 points, or 2.14 percent, to 1,462.67. Across the Korean Strait, the Kospi finished 12.76 points, or 0.67 percent, higher at 1,924.82.
Down Under, the ASX 200 retraced some gains to close up 38.07 points, or 0.76 percent, at 5,043.60; earlier, the index was up as much as 1.17 percent. The energy sector, which rose as much as 2 percent in early trade, pared gains to close up 0.49 percent, while the financials sector finished up 0.39 percent.
Continue reading on cnbc.com
— Prof. Steve Hanke (@steve_hanke) January 29, 2016
$GOOGL is poised to Overtake $AAPL today as the world’s Most Valuable Company
Google holding company Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) closed 4.5 percent higher than Apple Inc. (NASDAQ: AAPL) on Thursday and is up 8 percent from its January 20-low.
(click the chart for a full view)
— Paul R. La Monica (@LaMonicaBuzz) January 28, 2016
Stocks to Trade 2-1-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CRUS, RRC, GPOR, AR, OXY, FSLR, OKE, LULU, SLB, KSS, PCAR, EOG, CMI, CTSH, NEE, HCA, DLTR, CAM, FB, ACN, FB
Negative last 20 and 5 trading days | closed 2% lower from the open: vrtx, ea
Quarterly Order Flow:
Bullish Stocks to Trade: CTSH, FSLR, LULU, NEE, DLTR, CAM, FB, MMM, SBUX, PEP, GOOGL, CCI, MCD, PM, FL
Bearish Stocks to Trade: ea, gild, nflx, vrtx, cf, baba, axp, utx, car, vmw, ba, pru, nvs, ibm, ilmn, abc, unp, hog, cop, gs, hcn, kmx, ir, mon, celg, crm, fdx, mpc, luv, tif, qcom, bidu, uri, c, aer, stx, wdc
20 Day Breakdown: gild
20 Day Breakout: CRUS, LVS, OXY, SLB, PCAR, COH, NEE, HCA, CAM, FB, NLSN, MO, PG, JNJ, O, UA, MCD, PM, PE
2x Normal Volume: FB, V, GILD, AVGO, AAL, TAP, SLB, EA, MA, AMZN, STX, WDC, BA, UA, SWKS, ETN, PSX, AMGN, HON, NEE, VFC, STT, PCAR, TEL, RCL, WRK, CRUS, URI, XON, VMW
Inside days: pfe, ebay, qcom, nflx, cop, jnpr, axp, schw, jblu, bmy, celg, mdt, mgm, ccl, cat, twx, lly, vrx, m, teva, holx, hog, jci, bwa, kmx, mbly, car, cah, agn, aet, scty, mar, skx, gpor, mnk, yoku, ilmn, yelp, ctxs, mjn, len, bbby, adsk, jwn