Stock Market Nears 2015 Resistance 4-4-16

Most of the questions I am getting from day traders are about entering new longs.

Investors are in heaven, they don’t need to make any decisions. Traders though are asking “how…”

How can I buy aggressively at these levels?

The best answer is another question…”Why do you need to be aggressive? Why can’t you just be long until you see a reason not to be?”

Trading is not “all in” on every idea. You can and should adjust your accepted risk based on expectation and room to go. Expectation is the odds for continuation, room to go is profit potential. If one makes you uncomfortable, take the trade but size down.

Long is the correct play. If you feel like, or believe the market is overbought, reduce your size, but don’t get short.

Not wanting to be long anymore, is not a reason to be short. At least it’s not a high-probability reason.

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Trading Podcast Downloads

Pete’s  Day Trading Notes:

  • Have to admit, I expected a bounce off the lower open, I did not expect $3 off the low. Amazing price action.
  • New orders for $TSLA model 3 and a $240 breakout make for a must-watch today. Potential problems with fulfilling orders surfacing.
  • Oil and gas stumbling. Whippy topping price action. Far from a “tight” flag to expect continuation higher.
  • $HD, $MCD and FB all at significant breakout levels.

U.S. Index Futures Signal More Gains With S&P 500 at 2016 High

U.S. stock-index futures inched higher, as investors looked for fresh cues after the Standard & Poor’s 500 Index closed at its highest level of 2016.

Contracts on the S&P 500 expiring in June added 0.2 percent to 2,069.25 at 10:21 a.m. in London. The equity benchmark capped its sixth weekly gain in seven on speculation the Federal Reserve won’t rush to raise rates, and is one of three developed-market indexes that has erased losses for the year. Dow Jones Industrial Average futures gained 25 points to 17,731.

The S&P 500 extended 2016 gains to 1.4 percent on Friday after a strong jobs report bolstered economic confidence. The equity gauge staged a rebound in the second half of the last quarter, erasing losses of as much as 11 percent amid optimism over central-bank policies, a drop in the dollar and a rally in oil. A measure of stock swings dropped 23 percent in the period — the first back-to-back losses for the Chicago Board Options Exchange Volatility Index since 2013.

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Stock Market Today: Map of the S&P 500

(click the map for a full view)

spy map 4416

Stock Market Nears 2015 Resistance 4-4-16

Stocks Rally Into Close; Tesla Orders Hit 198,000

Stocks staged a big upward reversal to close out the first trading day of April on a positive note, amid a flurry of mostly positive economic reports.

The Nasdaq led with a 0.9% gain, while the Dow Jones industrial average and S&P 500 each added 0.6%. Volume rose on both major exchanges vs. Thursday, according to early figures. Losers outpaced winners by a small margin on the NYSE, but advancers beat decliners by nearly 3-to-2 on the Nasdaq. For the week, the Nasdaq rose 3%; the Dow and S&P 500 climbed close to 2% each.

In Friday’s economic news, U.S. payrolls increased by 215,000 workers in March, slightly above expectations, despite a slight uptick in the jobless rate to 5%. Consumer confidence in March also edged past forecasts to 91, up from 90 in February. The ISM manufacturing index rose to 51.8 in March from 49.5 in February, its first foray above the neutral 50 level since August. Economists expected 50.5.

West Texas intermediate crude prices slid 4% to below $37 a barrel.

The top gainers in today’s stock market action included biotechs, carmakers and other drug stocks.

Tesla Motors (TSLA) surged as much as 8% intraday before settling for a 3% gain in fast turnover. Orders for the electric car maker’s Model 3 mass-market sedan, which was unveiled Thursday evening and starts at $35,000, are pouring in. CEO Elon Musk confirmed at least 198,000 orders. The stock, up nearly 70% from its Feb. 9 low, is now 17% below its 52-week high.

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Chart Reading the SPY ETF

$SPY produces a classic buy signal, follows though with volume and produces a bullish engulfing candlestick. Now what? A gap lower in an up trend is a technical buy signal. Print out that chart and add it to your collection.

(click the chart for a full view)

spy chart 4416

Technical Analysis | Charts of Interest

$GS on

Goldman Sachs Is Rebounding in a Low-Risk Buy Zone
Goldman Sachs (GS – Get Report) continued to rebound yesterday. The stock finished last week in a very vulnerable position after four straight loses. This week, GS has firmed up nicely, and it closed Tuesday well above last week’s low. The stock is still rangebound, but the setup has turned much more bullish of late.

For Goldman Sachs bulls, the stock has settled into a low-risk buy zone as underlying support begins to strengthen.

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$GS defies conventional wisdom after FOMC statement and trades through a bullish breakout level with room to go to $166.70.

(click the chart for a full view)

GS 4416

$GS 4-14-16

Stocks to Trade 4-4-16

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: RH, SWHC, NFLX, X, WWAV, WBA, NWL, AMGN, FIS, ACAD, ,YL, GILD, SRPT, WDAY, SBUX, CPB, TSN, AVGO, AMT, DG, GS, ETN, EGN, FB, K, SHPG, PM, MA, LULU, WYNN, KMX, KMB, MDVN, NEM, CLR

Negative last 20 and 5 trading days | closed 2% lower from the open: car, m, nov

Quarterly Order Flow:


Bearish Stocks to Trade: car, bhi, de, vrx, agn, mck, esrx, endp, cf, vrx

2x Normal Volume: VRX, FL, SLB, CAM, MAR, TSLA, HOT, AGN

Inside days: fe, mdvn, etp, nbl, hcp, mpc, wdc, ibm, hes, cvc, kss, stj, tol, sndk, lnkd, data, grub

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