Stock Trading Today 1-12-17 LMT Gets Trumped

Today’s Trading Lesson…

Trust can be a tricky thing. Trust in your system, trust in probabilities, trust in your ability to follow your system.

Over the years “I hesitate too much” gets expressed on a weekly basis. Especially by those trading less than a year.

“I hesitate on entries. I cherry pick the trades. I hesitate on exits. When do I book profits? When do I add to winners?”

Every time I hold longer I give back profits. Every time I trade for cash flow the stock keeps going and going–without me…” 

What most traders never understand gets to the core of the problem. You don’t need to know what’s going to happen next to make money. There’s no reason to hesitate because you, me we, us, none of us has the ability to predict.

And the good thing is we don’t need to.

Start today, with your next trade, repeat this mantra and everything will be ok… “I need to know what’s probably going to happen, and need to know what I plan to do.”

Get to this stage and you allow probabilities to work for you. Trust the numbers over time.

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On the Tape Today...

$FB 1-12-17

$FB 1-12-17

FB | Facebook momentum rally finds resistance at the gap fill from 11-2-16 low. The trades sets up a pause and push to test the highs---but not today. The stock price reached a saturation point as well, even if the resistance wasn't there, we need to wait a couple of days for the stock to launch higher. Keep it in your tracking journal

KSS | Kohls continues to hold the bearish gap and momentum. Since breaking the $42 support, the trade holds solid reward potential. Looking for a $40.50 sell-stop with a target to cover @$38. Prepare follow follow through to the $35 level if the stock market offers some bearish momentum at the same time.

Stock Market Today: Heatmap of the S&P 500

SP 500 1-12-17

SP 500 1-12-17

Stock Trading Today 1-12-1 | Thursday Edition

Dow futures descend as analysts question the Trump rally

U.S. stock futures lost altitude Thursday, putting the Dow on track to give up much of the prior day’s gain as analysts continued to digest President-elect Donald Trump’s news conference.

Biotech stocks will try to recover following a slump Wednesday when Trump said companies were “getting away with murder” with respect to drug prices.

Amazon launches Chase card for Prime members

Amazon and Chase have co-launched a credit card for Amazon Prime members.

Amazon (AMZN, Tech30) and Chase, the credit card division of JPMorgan Chase (JPM), said the Amazon Prime Rewards Visa Signature Card provides 5% back on all purchases.

Financial Times Editorial Seeks Restrictions On Free Speech to Stop False News “Propaganda War”

A pair of articles by the Financial Times offers quite the take on disinformation hypocrisy.

I suggest the Financial Times look into the mirror if it wants to understand where the problem is. Worse yet, to stop the spread of fake news, the FT editorial board wants restrictions on freedom of speech.

What Does The Future Hold For ‘Average Joes’? (Spoiler Alert: Feudalism)

It is difficult to say exactly how, or when, the next collapse will be triggered, but, as’s Mac Slavo notes, of course all the conditions are ripe for it.

It’s the Drug Industry’s Turn to Tremble Before Trump

In a hallway of a San Francisco luxury hotel, investors huddled around a computer screen watching dozens of drug stocks plummet as President-elect Donald Trump lit into pharma companies, declaring that “they’re getting away with murder.” As for Obamacare, he said, “it’ll be repeal and replace.”

U.S. property foreclosures at 10-year low in 2016

Foreclosure proceedings affected nearly a million U.S. homes and other real estate last year, down 14 percent from 2015 and down 70 percent from the worst of the housing crisis in 2009, a report released Thursday shows.

Foreclosures hit a 10-year low and property owners in all but 15 states experienced fewer of the early stages of foreclosure, usually begun after owners have missed four mortgage payments, according to the report by ATTOM Data Solutions, formerly called RealtyTrac.

Low-Float, Heavily-Shorted Stocks Are The Volatility Play Right Now

There are always volatile stocks in the market. However, in recent months, a handful of big board-listed stocks have generated the kind of trading volatility typically reserved for penny stocks.

Tape Reading the SPY ETF

$SPY back-and-forth tango continues…

Had enough yet?

If you’re frustrated, stop complaining. We didn’t sign up for normal, we chose trading for the challenge. Well here it is, your patience gets the stress test.

The short sale in the general market makes you a top-picker, the long only works if we trade lower, or make new all-time highs (such as yesterday after the morning sell-off). 

“Stock specific” should be a giant wall-sized post-it pad above your monitor. The call we made in AAPL yesterday represents a solid example. Find good set ups and trade them with conviction. If the rest of the stock market joins your bias, all the better.

If not, at least you weren’t waiting for the market to pick a direction for three weeks.

$SPY 1-12-17 Hourly Chart

$SPY 1-12-17 Hourly Chart

Trump Vows Fighter-Jet Competition, ‘Big Things’ On Lockheed (LMT) F-35

Lockheed Martin (LMT) shares fell Wednesday after President-elect Donald Trump vowed more competition on fighter jets and said he would get costs down on the F-35.

“We’re going to do some big things on the F-35 program and perhaps the F-18 program,” Trump said in his first press conference in 167 days. “We’re going to have some competition, and it’s going to be a beautiful thing.”

He blasted the F-35 program for being “way, way behind schedule and many billions of dollars above budget.”

Trump criticizes, promises ‘big things’ for Lockheed Martin’s F-35 program

In his first press conference since being elected president, President-elect Donald Trump told reporters at Trump Tower in New York on Wednesday that “we’re going to do some big things on the F-35 program and perhaps the F-18 program” amid criticism of the former program.

The remarks expand on comments made last month, when Trump took to Twitter to call the costs of Lockheed Martin Corp.’s (NYSE: LMT) F-35 Joint Strike Fighter program “out of control” […]

$LMT 11-12-17

$LMT 11-12-17

Stocks to Trade 1-12-17 | Thursday Edition

Short-Term Trading Momentum:


Bearish Momentum: jwn, mck, teva, mnk

Quarterly Order Flow:

Bullish Stocks to Trade: ADNT, SLCA, PNC, STT, KMX, HCA, GS, PRU, WDC, NFLX, BA, TSLA, CLVS

Bearish Stocks to Trade: MNK, JWN, DG, KSS, LB, TWLO

2x Normal Volume: ARIA, MRK, WMB, PE, MYL, WDAY, SRPT

Inside days: bac, t, gm, hal, pg, baba, ebay, glw, aig, kr, ibm, pm, tgt, vlo, unh, dfs, ccl, urbn, hon, gsp, ups, kors, cof

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