Trading Lesson of the Day | 10-11-18
How to profitably trade the next two days and avoid losing your shirt...
Yesterday's bloodbath creates amazing short-term opportunity, yet many will lose a small fortune without the right strategy. More money is lost chasing ideas instead of waiting to confirm they remain valid.
The obvious trade today is a short sale, but at what aggression level and when does the trade no longer warrant getting short?
When does the trade become a long? Does it become a long?
Using the chart of WMT below you have the answer, but first let's qualify the trade. Is your stock in bullish or bearish order flow? Is it trading above or below yesterday's low?
Once you have these answers, you can then use this filter. CHANGE FROM THE OPEN. You are looking for your bias, (long or short) to be confirmed by today's price action.
For today, if your stock is ABOVE the open price (red dotted line in the chart) you would not sell short, unless the long term-bias is bullish, If your bias is bearish, and below the open, you can short sell with conviction -- as long as the reward potential warrants the trade.
The next two days offer opportunity, be smart.
Even Strong Delta Air Lines Earnings Might Not Lift the Stock
Delta Air Lines (DAL) will release earnings before the market opens on Thursday. But its earnings may not matter. Delta stock has fallen 9.9% this year as investors continue to fret about industry dynamics despite strong earnings.
Consider that Delta has earned almost as much money in the last three years as it had in the prior 30-years.
What’s expected. Analysts are expecting earnings of $1.75 per share, in-line with company guidance provided last quarter, on $12 billion in revenues.
Stocks to Trade | Thursday Edition 10-11-18
Bullish Cash Flow Trades:
Bearish Cash Flow Trades: roku, pags, sq, mtch, twlo, nflx, amd, cf, wb, nvda, crm, kors, momo, nke, yelp, adbe, ma, amzn, baba, sfix, pypl, msft, etsy, avgo, atvi, ntap, unp, qcom, v, aapl, vlo, fb, ea, gs, utx, ibm, ual, axp
New 20 Day Breakout:
New 20 Day Breakdown: roku, sq, mtch, twlo, nflx, cf, nvda, crm, nke, ma, amzn, baba, pypl, msft, qcom, v, ea, mmm, txn, utx, ual, axp, hon, jpm, hd
Double Normal Volume: MSFT, BABA, FTNT, SQ, PYPL, V, CRM, TXN, AMZN, MCHP, CAT, MA, CF
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