Day trading will be interesting today.
Heavy volume last Thursday and Friday with a positive change from the open is short-term accumulation. Smart traders know this is a sign of a potential change of trend. We are seeing this in M Macy’s right now after the stock price took a 50% haircut since July 2015.
This type of price action, and volume, does not mean to reverse course. Big money does not turn on a dime. Neither should a trader.
The biggest complaint I received last week from new traders was not earning enough on trend days. The high-volume trends in the direction of the long-term order flow need to be captured.
Too many traders where looking for a bottom, and not trading aggressive to the short-side.
Now a trader’s bottom is in and they will all be gun-shy about buying stocks. This is a symptom of a bigger problem. To succeed as a trader you need a personal checklist of criteria. You need to know when to short stocks and when to buy. You need criteria to spot the big money.
Without these reference points every trade looks alike. This makes you a break-even trader at best.
Spend an hour and determine what levels and price action matter to you, this is the essence of tape reading.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
SPY closed positive from the open two days in a row, a positive sign for short-term traders. The $190 level is the support bullish traders need to see, for conviction long.
(click the chart for a full view)
Stock Market Finds Buyers After 3 Day Weekend 1-19-16: Today’s Day Trading Ideas
- Giant list of stocks from Friday with more than double normal trading volume. This indicates a short-term bottom.
- Tough to find a good swing trade long. Be patient if you only trade long.
- The net negative change is misleading because there were 69 stocks that closed 2% higher from the open on Friday. (screened with specific volume and volatility criteria)
Technical Analysis | Charts of Interest
Facebook’s stock price held the 200 sma on the daily chart Thursday and gave us an inside day on Friday. Finding solid trading ideas long today was slim pickings but I like this stock for a breakout. The first profit target for day traders is $100.
(click the chart for a full view)
Stocks to Trade 1-19-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: ABBV, M
Negative last 20 and 5 trading days | closed 2% lower from the open: apc, gnc, nxpi, rax, aer, sfm, wfc, car, adsk, akam, akam, dd, cci, rcl, mga, el
Quarterly Order Flow:
Bullish Ideas ATR/Volume/Price: BXLT, KSS, WMT, LULU, RAI, AEP, FSLR, NEE, ED, ABBV
Bearish Ideas ATR/Volume/Price: wmb, apc, etp, nxpi, csiq, aer, c, hfc, car, adsk, swks, akam, dd, cci, amba, rcl, dvn, dis, mpc, fit, cop, ual, kmx, stt, avgo, wpz, wdc, stx, esrx, gs, eog, cf, bhi, dow, cyh, cof, v, cat, pru, slb, lng, celg, aapl, hot, ibm, jpm, mar, mbly, oxy, lyb, ua, nke, adi, gild, ups, thc, ksu, jwn, len, mck, bbby, fosl
20 Day Breakdown: nxpi, sfm, c, adsk, nfx, cci, rcl, nvda, dis, mpc, mga, expe, ms, kmx, tel, msft, amtd, amzn, esrx, mchp, gs, ftnt, hig, pep
20 Day Breakout:
2x Normal Volume: C, WFC, JPM, MS, ABBV, DIS, NVDA, SCHW, MDLZ, COP, AAL, TXN, BBY, APC, FAST, USB, BRCM, JCI, ACE, DHI, BXLT, UAL, BX, LVS, WYNN, ESRX, LVS, WYNN, ESRX, UTX, TSN, CRM, MBLY, CCL, EA, MAR, ADI, XLNX, AVGO, NFX, LLTC, CCI, CL, GS, LRCX, ADSK, LEN, PNC, KMX, CAR, ACN, TEL, AFM, MCHP, RCL
Inside days: fb, xom, nflx, jci, hal, bmy, mcd, mbly, celg, vlo, vrx, oxy, lly, amgn, unh, psx, tsla, lyb, paa, dfs, oke, aem, tso, pcar, yoku, yelp, crus, fslr, prgo