Stock Market Producing Light Volume-Inside Week

Generally, I am a strong advocate for traders to focus on one trading strategy, especially if you’re having a hard time getting past break-even.

Larry Williams

Larry Williams

Today I am going to shift direction and discuss why every day trader should add this second set up to your game plan. Each day, the very last scan I place on the blog is inside days. Day traders need volatility, and volatility sets up from a contraction in volatility, otherwise known as an inside day.

The great trader Larry Williams said the only 2 market cycles you need to know are contraction and volatility, because one always leads to the other. I agree, Larry is a smart man and well-respected trader. In case you have never heard of Larry Williams, in a documented competition, he took $10,000 to $1.1 million. Exploiting volatility was one if his methods.

The key to profitably using inside days is accepting that you are no longer trading the trend. This is why I have labeled it a second strategy. The correct play, as Linda Raschke says, is to anticipate an increase in volatility, but do not forecast direction.

It can be hard not to say, “the trend is bullish, so I think it will break out higher.” Ignore this thought. Simply scan the list, wait for the breakout or breakdown and ride the trend for the day. Inside day breakouts will become you new best friend.

A successful trading strategy doesn’t need to be difficult, it simply needs to be definite.

If you need some help leave a comment below…


Trading Podcast Downloads

Pete’s  Day Trading Notes:

  • AMZN< UNH< YUM, lone shining longs with good volatility.
  • $AAPL inside day and solid relative strength. Above $107 with a target of $109 is the trade.
  • $FB continues to remain well-bid with a target of $115.23.

U.S. stocks set to break five-week winning streak, as Dow futures fall 150 points

Wall Street was heading for another day of losses on Thursday, as a stronger dollar and slumping oil prices crimped the desire to invest ahead of the long Easter weekend.

Futures for the Dow Jones Industrial Average YMM6, -0.41%  slumped 152 points, or 0.9%, to 17,376, while those for the S&P 500 index ESM6, -0.47%  dropped 20.95 points, or 1%, to 2,021.75. Futures for the Nasdaq 100 index NQM6, -0.52%  fell 39.25 points, or 0.9%, to 4,377.

The benchmarks were on track to break a five-week winning streak, with all of them down 0.6% on the week as of Wednesday’s close. U.S. financial markets are closed on Friday for Easter, but will be back to normal trading hours on Monday.

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Stock Market Today: Map of the S&P 500

(click the map for a full view)

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Stock Market Producing Light Volume-Inside Week 3-24-16

Stock Indexes Lose Ground, But Climbs 

Stock indexes took sizable steps backward Wednesday, and the technical action pointed to institutional selling.

At the close, the Nasdaq retreated 1.1%, while the S&P 500 and the Dow Jones industrial average fell 0.6% and 0.4% respectively. Preliminary data showed volume on the NYSE and Nasdq coming in higher than Tuesday’s levels. Rising volume combined with sizable losses in a major index point to fund selling. (AMZN) was one of stocks moving up Wednesday. The big-cap stock popped 1.6% as it climbed higher above the convergence of its 50- and 200-day lines. The online marketplace was a stock market star last year, up 118%. However, after peaking in late December, Amazon is now 18% off its high.

Quality funds have not given up on Amazon. Fidelity Contrafund (FCNTX), which carries an A+ rating from IBD, expanded its stake about 8% in Q4. Five other A+ funds opened new positions in Q4, and almost six dozen, yes six dozen, A+ funds added to their positions in Q4.

Among IBD’s 197 industry groups, auto parts and electric utilities sported the biggest gains. Metal ores and steel logged the heftiest losses.

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Chart Reading the SPY ETF

$SPY continues to trade on light volume this week, barely breaching the 100 million share barometer. The $SPY is not giving many clues, stay stock specific for now.

(click the chart for a full view)

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Technical Analysis | Charts of Interest

$CSIQ on

Canadian Solar, Inc. breached its 50 day moving average in a Bearish Manner

CSIQ-US‘s share price performance of -43.14% for the last 12 months is below its peer median. The 30-day trend in its share price performance of -5.57% is also below the peer median implying that the company’s stock performance is lagging its peers.

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$CSIQ has short-term support at $18.50 and $18, then a clean run to a price target of $15.58.

(click the chart for a full view)

CSIQ 3-24-26 click to enlarge

CSIQ 3-24-26 click to enlarge

Stocks to Trade 3-24-16

Short-Term Trading Momentum:

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

Negative last 20 and 5 trading days | closed 2% lower from the open: nem, csiq, evhc, rcl, rh, endp, lbtya

Quarterly Order Flow:


Bearish Stocks to Trade: vrtx, rcl, rh, endp, celg, incy, teva<54, lly, mnk, lnkd, vrx

2x Normal Volume: VRX, NKE, CNC, CIT, LL, IONS, AKRX

Inside days: aapl, msft, xom, jom, dal, esrx, mdt, schw, usb,wdc, sbux, abbv, nwl, ctrp, gs, hd, jah, swks, avgo, cof, cl, aet, ups, hon, kors, tif, kss, tso, k, chtr, adi, biib, adsk, fdx

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