The stock market has a lot of smart people confused right now…
Confused trading might not be the correct image, but it certainly explains the feeling. Retail stocks were under pressure after the WMT comments yesterday. JPM earnings were not received well by Wall St. NFLX earnings report left analysts confused about the reason for lower subscribers. “Subscribers did not receive their new chip-encoded credit card” is lame at best.
Goldman Sachs reports earnings and opens lower before the opening bell, and the tone was set for a trend day lower. Throw into the mix strong tech stocks that are oversold or near resistance and the ingredients for a red heat map were in the pot.
The members in our live trading room were officially in day trading mode. Reduce the longer term bias and trade around recent reference points. This means yesterday’s high and low, change from the open and today’s open price were center stage.
So what do we get?
A slow, volume morning that transforms into a day trading dream. Bid for stock, take stock at the offer it didn’t matter, the bulls were in the house.
Today we spent a great deal of mentoring time teaching a unique skill. The need to know when the current market is challenging or if it’s time to step on the gas. The distinction is crucial for long-term success.
If you have hopes of becoming a full-time trader, you must make $2,500 when Mr. Market is offering it up. Earning $1,000 isn’t enough. To get to this stage of stock trader development requires strict criteria.
This means top down analysis and learn to read the market internals.
Stock Trading Recap 10-15-15 | Thursday Video
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End of Day S&P 500 Map 10.15.15
S&P 500 heat map with plenty of green on the board today. Day traders should expect follow through for tomorrow’s open.
SPY End of Day Chart 10.15.15
Financials received the press but healthcare was the true winner today.