Today’s Trading Lesson…
Having the Discipline to Do Your Trading Homework
How much time do you set aside to review the markets after hours? The trading day is not a 9:30-4 job (for stock traders). As a matter of fact, it’s not a job, it’s a business. A winning entrepreneur doesn’t stop improving or working after hours.
Great traders have the discipline and structure to work before and after the market is open. It means working late, reviewing current positions and planning for tomorrow. It also means starting early, updating your game plan and scanning relevant news.
If you don’t do all of this already, start setting aside time every night. Review multiple time frames, know your levels and especially know the order flow bias. Have an absolute answer to the question “who is in control…bulls or bears?”
In my 13 years as a prop trader in NYC, the guys I know who are the best traders also work the hardest. They are the first in the office and never leave at 4 pm. They strive to be the best which means they pay attention and they usually have a coach or mentor. At the very least they have another trader who gives honest feedback.
The most expensive mistake I made over the years? Not paying attention and adjusting quickly. There is no greater pain for a trader than to feel close, but never get there.
Learn from my experience and start keeping a detailed journal today.
On the Tape Today...
COST | Costco emerged from four days of indecision with a solid day of buying amid a neutral to weak day in the stock market. $164 remains the breakout level that triggers a new long with a target @ $168. Not looking to exit at the target because there's room-to-go beyond that level. Best case scenario, the stock price hits the resistance and pauses on light volume. This implies further upward price action.
MNK | Mallinckrodt Pub remains in solid bearish order flow and below previous support of $52. A $49 sell-stop triggers a new swing trade short with a target to cover @ $42. Stop-loss planned for a close on the daily chart above $50.25.
Stock Market Today: Heatmap of the S&P 500
Stock Market Today 1-18-17 | Wednesday Edition
Bruised U.S. stocks look for guidance from Goldman results, Yellen speech
Stock futures inched higher on Wednesday, as investors waited for a steer from Goldman Sachs and Citigroup earnings reports and from a speech by Federal Reserve chief Janet Yellen.
Economic data will also get attention, with consumer prices and a home builder’s index scheduled for release. U.S. stocks retreated Tuesday as the market turned its attention to comments from President-elect Donald Trump, who said a strong dollar is harming the U.S. economy.
Janet Yellen set to speak; Goldman Sachs earnings; Muddled markets
How Obama Changed Investing Forever
Here’s how one corner of Wall Street got a lesson in the power of the U.S. presidency.
For years, personal finance writers have warned readers to keep an eye on their financial advisers. Some advisers, we pointed out over and over, are more like salespeople, paid to steer you toward particular products and prone to charging huge, unnecessary up-front fees. Other advisers are “fiduciaries,” allowed to charge for their services but required to put their clients’ interests first.
Business euphoria over Trump gives way to caution, confusion
Early optimism among business lobbyists and executives that Donald Trump’s election heralded better days has slowly given way to uncertainty as the president-elect fires off mixed and sometimes confusing messages on healthcare, taxes and trade.
An initial euphoria in the business world fueled a powerful post-election stock rally. Some of that has frayed as questions arise over the nuts and bolts of Trump’s campaign promises […]
Turning Goals Into Consistent Actions
Here’s an idea to add to your keeping of a trading journal:
Instead of simply recounting what you did right and wrong and what you’d like to do going forward, grade yourself on your consistency. Your consistency grade requires a list of your best practices.
World’s Largest Education Company Crashes After Dire Warning, Warns Of “Unprecedented” Business Decline
British education group, and the world’s largest education company, Pearson PLC lost a quarter of its market cap in an instant this morning after it issued a dire warning about the state of the textbook business, cut profit forecast, and warned of an “unprecedented” decline in its North American business.
It also put its stake in the iconic Penguin Random House book business for sale in a bid to raise cash, not long after selling the Financial Times to the Nikkei.
Wal-Mart, Best Buy, Apple Rally After Trump Pans GOP Border Adjustment Tax
After a solid month of bad news, Wal-Mart (WMT), Best Buy (BBY), Dollar Tree (DLTR) and other retail stocks were among the biggest winners on Tuesday as doubts emerged over President-elect Donald Trump’s plan to slash corporate taxes.
Apple (AAPL) also may be seeing a benefit from a disagreement between Trump and House Speaker Paul Ryan over how to make a big corporate tax cut fiscally viable.
Lessons To Learn From George Soros’ $1 Billion Election-Trade Loss
There’s no question that billionaire hedge fund manager George Soros has been one of the most successful investors in history. In fact, Soros is one of the 30 richest people in the world, according to Bloomberg.
However, nobody’s perfect when it comes to predicting financial markets, even George Soros. In 2016, Soros made a major trading blunder when he placed a large short bet on the stock market following Donald Trump’s election victory in November.
Twitter Gets Downgrade On Muted User Growth, Advertising Concerns
Twitter (TWTR) was downgraded to neutral from buy at UBS, which cited lowered advertising revenue estimates and muted growth among monthly average users.
UBS analyst Eric Sheridan also lowered his price target on Twitter stock to 18 from 22.
Banks Have Big Hopes for Trump, But Obama’s Old Team May Get in the Way
Wall Street’s expectations that Donald Trump will quickly free banks from the grip of aggressive regulators could encounter a problem: Some of Barack Obama’s top appointees aren’t planning to leave anytime soon.
Tape Reading the SPY ETF
$SPY price action stuck in inauguration mode?
Not much going on here in price or volume. About as slow of a tape as we have witnessed in a while. But that doesn’t mean we lack opportunity. Remember, the general market gives extra fuel to scenarios, sector, industry and stock specific trading ideas come first.
If the market shows obvious order flow, great. If it doesn’t, continue to work hard and scan for stocks with order flow, have not reached a saturation point, and are well-bid (or well-offered).
The financials getting some attention the last 7 days off earnings. Most of them are order flow longs but you should still pay attention despite the short-term selling.
Netflix Poised For Royally Good Q4 Earnings Report
Fresh from winning a Golden Globe Award for best dramatic TV series with “The Crown,” Netflix (NFLX) hopes to keep the plaudits coming with its fourth-quarter earnings report, due out after the market close Wednesday.
Analysts polled by Thomson Reuters expect the internet television network to earn 13 cents a share, up 30% year over year, on sales of nearly $2.47 billion, up 35%, in Q4. That would be its fourth straight quarter of accelerating top-line growth.
Netflix, Inc. Stock Hits All-Time High Before Earnings
After market close on Wednesday, streaming-video company Netflix (NASDAQ:NFLX) will report results for its fourth quarter.
Just before the report, the stock is hitting new highs, briefly touching $135.40 when the market opened on Tuesday. Further, the stock is up a whopping 35% in the past six months. Clearly, investors are optimistic about the stock’s potential.
Ahead of the report, here are some big-picture questions investors will likely be looking for Netflix management to address in its upcoming quarterly report and conference call.
Netflix Poised for Growth Amid Speculation of an Elusive Blockbuster Deal By Disney or Apple
For the fourth quarter, Netflix is expected to have added roughly 5.1 million new net subscribers worldwide, a solid number even though investors would rather talk about a buyout.
Netflix (NFLX) is focused on international subscribers, but investors are obsessed with a possible buyout.
When the world’s premiere subscription-based video distribution platform posts its fourth quarter earnings on Wednesday after the market close, it’s expected that Netflix will have added […]
Stocks to Trade 1-18-17 | Wednesday Edition
Short-Term Trading Momentum:
Bullish Momentum: CVS, CERN, CCI, ESRX, EVHC, CLVS
Bearish Momentum: cma, zion, qcom, sti, gs, cof, sm
Quarterly Order Flow:
Bullish Stocks to Trade: TRGP, SLCA, CLVS, WDC, LYB>91, BABA, BA, TSLA, KMX, LRCX
Bearish Stocks to Trade: mnk, gild<70, twlo, jwn, lb, tgt, kss, wfc,
2x Normal Volume: QCOM, NBL, NVS
Inside days: fb, abbv, atvi, cop, ctsh, cvx, bhi, lyb, twlo, ea, fslr,