Day traders are a little stymied right now…
Especially bearish traders. And traders who use overbought or oversold indicators. I can’t tell you how many subscribers ask me why I don’t use stochastics or MACD. This type of market is exactly why. It is an extremely difficult topic to teach and mentor.
Overbought can remain overbought for days or weeks.
Here is the biggest problem you don’t see that is costing you a small fortune:
- You think the market is overbought.
- You put on a short-sale.
- You lose a little with good discipline.
- It moves a little higher, you put on another short-sale.
- You lose a little and are proud because the market is going higher, you were short, but only lost a little.
- Next the market is REALLY overbought and you short heavier because it HAS TO reverse at this level.
You take another loss and feel a sense of accomplishment because you “Managed Risk!”
What you fail to realize is the line of least resistance is still up and you did not earn easy money. You lost twice. You lost money and you didn’t make money.
Learn to read the tape. Stop guessing.
If you need some help leave a comment below…
Pete’s Day Trading Notes:
- Not much to interpret from yesterday. Don’t over analyze nothing.
- Healthcare facilities continue vertical ascent. | DOC, HCN, HCP, HTA, MPW, OHI, SNH, VTR
- Quite a few stocks closing back above the 50 sma on the daily chart.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
Stock Market Seeks Believers 3-2-16 | Angry Bears Confused
Stocks End Little Changed; Nvidia Nearing Buy Point
Stocks ended little changed Wednesday, holding tight after big gains the previous day pushed the major averages back above key support lines.
The S&P 500 edged up 0.2%, while the Nasdaq and the Dow Jones industrial average both ended flat. Volume in the stock market today edged up 1% on the NYSE but dipped 6% on the Nasdaq compared to Tuesday, according to preliminary data.
Defensive stocks such as steelmakers and miners led the gains, but solar stocks also fared well, led by SolarEdge Technologies (SEDG), which popped 8% in heavy volume and retook its 10-week and 40-week moving averages.
The Israel-based company, which went public in March last year, has posted strong sales and profit growth in recent quarters. Earnings for Q1 are expected to rise 105% to 41 cents a share, which would mark the third straight quarter of triple-digit gains.
Meanwhile, chip designer Nvidia (NVDA) edged up as it continued to march toward a possible 34.04 buy point of a cup base. The stock jumped more than 8% and retook its 50-day line Feb. 18 after posting a much better-than-expected 21% gain in profit for the fiscal fourth quarter that ended in January.
While the overall chip sector remains weak, chip designers, manufacturers and equipment makers have been showing strength.
Not sure what to make of the 2016 stock market? These Twitter accounts will help you stay on top of it: https://t.co/zCBxOPy4gn
— MarketWatch (@MarketWatch) March 2, 2016
Chart Reading the SPY ETF
$SPY closed higher on luke-warm volume. I would expect a lower open today, a test of $200, then profit taking into the close.
(click the chart for a full view)
Technical Analysis | Charts of Interest
$TGT on finviz.com
A solid three weeks of buying in Target into the $80 level. Should pause for a day or two and then hit our first profit target of $84.65.
Target Lays Out Multi-Billion Dollar E-Commerce Plan
The retailer will spend $2 billion a year starting in 2017.
Target TGT 0.17% dodged a bullet over Christmas.
The discount retailer reported a 34% increase in online sales during the holiday season, re-accelerating the pace of growth after it slowed down in preceding quarters.
Still, for the year, Target’s e-commerce rose only 31%, well below the 40% CEO Brian Cornell promised Wall Street a year ago. And that was despite spending about $1.4 billion in 2015 on tech.
— Ticker Report (@TickerReport) March 3, 2016
(click the chart for a full view)
Stocks to Trade 3-3-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: MUR, RRC, XON, APA, CLR, WPZ, APC, CXO, HES, HP, CAR, WRK, MBLY, URI, VRTX, AER, BHI, PXD, LVLT, TMO, XOM, OXY, NFX, SNDK
Negative last 20 and 5 trading days | closed 2% lower from the open: ctrp, dltr, mon
Quarterly Order Flow:
Bullish Stocks to Trade: ROST, PXD, LVLT, TMO, SAVE, CHRW, VTR, HCN, PSX, BMY, KORS, CCI, LVS, KMB, HON, CAM, WYNN, UPS, ITW, ADSK, FSLR, TGT, EIX, LULU, TRV, TJX, AMT, MMM, DHR, JNJ, DAL, UAL, DD, LRCX
Bearish Stocks to Trade: mon, wnr, cern, myl, teva, lnkd, ar, eog, vrx, endp, rh, dvn
2x Normal Volume: VRX, LLTC, ANF, DUK, MON, ROST, AR, KATE, SNDK, ARRS, DLTR, WDAY
Inside days: csco, orcl, gild, ebay, sbux, atvi, aal, nem, dltr, azn, v, lvs, unp, ual, avgo, ba, pep, jblu, hd, ma, dg, hbi, fast, kss, yum, unh, de, ftnt, lrcx, cmi, mjn, fslr, aet, lgf, skx, expe, ir, crus