Stock Market Continues Range-Bound Cash Flow Trading

Continuing education is a monster part of trading for a living. Could you imagine going to see a doctor or lawyer who hasn’t kept up with regulations or changes?

Yet that’s exactly what most traders do. They stop learning and they pay the price.

A good trading education starts with learning what to look at, but ultimately, it’s the screen time and really understanding the right questions to ask.

  • “What just unfolded?
  • What did I miss?
  • What didn’t I see?”
  • I got filled, what do I plan to do if it moves in my favor? If it moves against me?
  • When should I trade for cash flow versus hold trades longer? How do I know the difference?

The more prepared you are to answer these types of questions, the more distinctions you can make in price action, the more consistent your trading results will be.

Tweet: Consistency comes from your plan, not from the market.

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Pete’s  Day Trading Notes:

  • Financials continue to remain weak. $GS is a solid stock to be day trading right now.
  • $WYNN breakout recently now hovering near 200 sma resistance. Another great stock for day trading. excellent liquidity and volatility.
  • $HD solid earnings but profit-taking yesterday. Look for a test of yesterday’s low to be support for a buy trigger.

Stock Market Today: Map of the S&P 500

(click the map for a full view)

Stock Market Continues Range-Bound Cash Flow Trading

–> Top 25 Proprietary Trading Secrets

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Stock Market Continues Range-Bound Cash Flow Trading 2-24-16

Dueling Scenarios for the Stock Market

After falling for most of the year, stocks have staged a decent rebound in the past week.

But is this a sign that stocks are correcting from the correction? Or are rougher days ahead?

If the stock market is a Rorschach test, CNNMoney’s Paul La Monica and famed market observer Mohamed El-Erian are seeing very different pictures.

In his piece for the CNNMoney site, La Monica writes that it’s encouraging to see some of the most beaten-up stocks, such as energy and other commodity companies as well as banks, rebound so sharply. He thinks that augurs well for stocks overall.

He points out that aluminum giant Alcoa (ticker: AA ) has surged more than 20% and Bank of America ( BAC ) and Citigroup ( C) have each gained roughly 15% since the Standard & Poor’s 500 index hit a multiyear low on Feb. 11.

“The rally in banks is particularly welcome,” La Monica writes. “Many banks have suffered due to worries that troubles in the oil patch will lead to a big wave of energy loan defaults.”

La Monica suggests that despite the correction that stocks have encountered, the bull market isn’t over because challenges in the energy sector haven’t yet spilled into the broader economy.

Continue Reading on Barrons

Why this stock-market correction may already be over

As we noted last week, the market can certainly have bottomed, especially when you consider the pattern in the Russell 2000 IWM, -0.95% But we have a test coming over the next week or two which can very well provide us with one more lower low before we consider the correction completed.

I want to start this week with one chart that is making it very hard for me to bearish in the bigger picture, and that is the IWM chart. While it is still possible we can see a lower low, the pattern and technicals are suggestive of the type of bottoming that we experienced in 2011.

Moreover, we have an a-b-c pattern into that bottoming region, with what can be argued as a completed 5 wave move down in the c-wave. Of course, I can substantiate another trip down toward that lower trendline and the bottom of the box one more time, but, in the bigger picture, this is a textbook larger-degree bottoming pattern.

In moving onto the SPX chart, as long as we remain below 1975SPX SPX, -1.25% I can substantiate one more lower low. Right now, we have the potential for a textbook wave 4 flat pattern forming, which is the pattern we have been carefully tracking for the last few weeks.

Currently, we have likely completed wave iv in the (c) wave of that 4th wave. And as long as Friday’s low holds as support, I am looking up toward the 1947SPX level to complete the (c) wave. This can then set us up for a 5th wave to a lower low into the 1700s, as seen on the 60-minute chart.

Continue Reading on

Chart Reading the SPY ETF

SPY hit resistance and traded lower into the close, yesterday’s trading game plan was on the money. Today we are set to open near the 20 ema support, the open range breakout (high and low of the first 15 minutes, should dictate the bias for the day. Make sure the $SPY clears that range before you get aggressive with your decision making.

(click the chart for a full view)

Stock Market Continues Range-Bound Cash Flow Trading

Technical Analysis | Charts of Interest

$IONS on [earnings Feb 25]

#IONS | Ions Pharmaceuticals Inc emerging from a perfect bear flag with close to a $3 profit target @ $30.93.

(click the chart for a full view)

Stock Market Continues Range-Bound Cash Flow Trading

Stocks to Trade 2-24-16

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: DKS, THC

Negative last 20 and 5 trading days | closed 2% lower from the open: rrc, eqt, ar, spwr, apc, wnr, mpc ions, lyb, jpm, vrtx, trip, c, mdvn, expe, gs, celg, nxpi

Quarterly Order Flow:


Bearish Stocks to Trade: rrc, wdc, ar, apc, egn, mpc, ions, cop, lyb, apa, jpm, vrtx, trip, cern, c, now, nflx, mdvn, ea, gs, swks, atvi, lnc, aapl, pru, vlo, panw, aig, pnc, mon, lnkd, vrx

2x Normal Volume: COG, M, LOW, SNDK, HON, TRGP, NCLH, CRZO, TOL, THC

Inside days: vrx, nflx, utx, ko, qcom, aal, amzn, esrx, akam, mdt, mat, peg, mar, k, unh, kss, fdx, ftnt, cag, crus

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