Equity traders need to hear the “D” word.
The market closing on the low with good volume, then seeing a higher open, can be confusing-and can ruin your confidence. I don’t mean confidence to make money, I mean confidence in what you are looking at, the structure of price action that determines your edge.
A disciplined trader can only be so with a road map of what great trade ideas look like. You need to know what great is, so you can identify everything else, and be disciplined to avoid low probability trades.
If you’re not clear on what perfect trades are within your trading plan, everything will look alike, and make it impossible to be disciplined.
Spend some time outlining what your perfect trade set up. I am not talking about a 5 minute bull flag. I am talking everything you can add to the argument.
- The indices.
- The $SPY
- The current price of your stock in relation to yesterday’s close -high-low, today’s open.
- Relative strength to the market and industry related stocks.
- The market internals. Which market internals matter to you?
The more detailed the list the better. This is where success starts, and inconsistency lives, without it.
If you need some help leave a comment below…
Pete’s Day Trading Notes:
- Today’s higher open is surprising a lot of shorts.
- Oil and gas taking a break, but need to remain in your watch list.
- $SPY $200 is our reference point for tape reading.
U.S. stocks set to rebound as oil jump fuels optimism
Stocks on Wall Street were set for a mild rebound on Wednesday, with the investing mood lifted by a rally in oil prices and solid gains in Europe one day ahead of the closely watched European Central Bank meeting.
Futures for the Dow Jones Industrial Average YMH6, +0.51% gained 33 points to 17,005, while those for the S&P 500 index ESH6, +0.50% added 3.3 points, or 0.2%, to 1,984. Futures for the Nasdaq 100 index NQH6, +0.55% climbed 5 points to 4,275.50.
“I still see it all following oil,” said Richard Perry, analyst at Hantec Markets, in emailed comments. “Oil is higher and dragging sentiment improvement.”
Perry added that in Europe, the German DAX 30 index DAX, +1.29% and France’s CAC 40 PX1, +1.10% were rising ahead of what’s expected to be another round of easing from the ECB The Stoxx Europe 600 index SXXP, +1.12% rose 0.6%.
Read: European stocks rejuvenated by gains for oil prices
Crude oil CLJ6, +1.62% jumped 1.6% to $37.09 a barrel, as investors went bargain hunting after an overnight decline. On Tuesday, a slide in oil prices combined with worries over a prolonged slowdown in China sent U.S. stocks lower, with the S&P 500 index SPX, -1.12% and Dow average DJIA, -0.64% snapping a five-session winning streak.
Investors were also waiting for the latest news from the ECB, which is delivering a policy decision on Thursday.
Continue reading on marketwatch.com
Stock Market Today: Map of the S&P 500
(click the map for a full view)
Stock Traders Seek Bullish SPY 200 SMA Test 3-9-16
S&P 500 Futures Signal Stocks to Rise on Bull-Market Anniversary
U.S. stock-index futures rose, signaling more gains for equities heading into the eighth year of a bull run, as investors awaited cues from central banks.
Standard & Poor’s 500 Index contracts expiring in March rose 0.4 percent to 1,988.25 at 11 a.m. in London. The benchmark halted its longest rally in five months yesterday, led by a selloff in energy shares after worsening economic data from Asia. Dow Jones Industrial Average futures gained 67 points, or 0.4 percent, to 17,039 today.
Updates from the European Central Bank on Thursday and the Federal Reserve next week may shed light on the potential for further stimulus and the trajectory of interest rates. Speculation for additional moves from the ECB to boost growth, along with nascent stability in crude prices and improving U.S. data have helped global equities rebound during the past three weeks.
“We’re waiting for the ECB and for the Fed next week — the market will be hesitant until it gets more clarity from those meetings,” said Francois Savary, chief investment officer at Prime Partners in Geneva. “Clearly there are hopes about the ability of the ECB to deliver. We are still in a volatile phase for equity markets.”
Continue reading on bloomberg.com
S&P Futures Jump As Rebound In Commodities Helps Defense Of Key Support https://t.co/dhK8HnBpma
— zerohedge (@zerohedge) March 9, 2016
Chart Reading the SPY ETF
$SPY seems determined to remain in this up trend. With a positive open (8am) after yesterday’s selling into the close, bearish traders are caught…again.
(click the chart for a full view)
Technical Analysis | Charts of Interest
$VRX on finviz.com
Valeant Pharmaceuticals International Inc. trades with an awesome average true range of $7.39 and has plenty of liquidity. Yesterday’s tight range sets up solid odds for a trend day today. If we get continuation patterns, a good stock to hold to the close.
Fund manager Ackman calls Valeant ‘very valuable asset’
NEW YORK, March 8 (Reuters) – Billionaire investor Bill Ackman on Tuesday called embattled drug company Valeant a “very valuable asset” but forecast that if the company’s situation does not stabilize soon new management will be brought in or the company will be sold.
(click the chart for a full view)
Stocks to Trade 3-9-16
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: DKS, JWN, COST, NOW, SWHC, URBN
Negative last 20 and 5 trading days | closed 2% lower from the open: spwr, bhi, hznp, vrx, tex, thc, myl
Quarterly Order Flow:
Bullish Stocks to Trade: MCD, HD, NEE, KMB, LULU, LOW, ACN, HON, CHRW, TJX, MMM, ROST, BMY, TGT, JNJ, UPS, AMT, KORS, HCN, DD, CVX, DE, XOM, UAL, ADSK, PSX, HP, LVS, WYNN, APA, IONS
Bearish Stocks to Trade: spwr, ar, gpor, endp, myl, v, rh, ctrp,
2x Normal Volume: URBN, MTDR, DKS, LL, MUR
Inside days: pfe, xom, wmt, cog, aig, jnj, vrx, eog, bmy, hrb, stx, ibm, wfm, celg, ba, tsla, cf, kss, ntap, hog, kim, tjx, adsk, hcn, bbby, mnk, tso, incy, fdx, panw