Today’s Trading Lesson…
How to Keep a Trading Journal That Results in Better Trading
A trading journal is like a vegetable.
We know we need it but we don’t partake enough.
Committed traders keep track of progress and there is no better way to do this than a trading journal. On the surface a journal helps evaluate performance but applied properly it should go much deeper than the results.
A trading journal is a checklist for measuring execution. It’s a friend to be accountable to. Long-term results are driven by each action-from strategy to stop-loss. Documenting your ability to follow your plan is crucial to success. It’s crucial in the pursuit of consistency.
Trust me that I am not using the word crucial, lightly.
On the Tape Today...
DLPH | Delphia Automotive finally cracks the $72 resistance and establishes new order flow. A swing trades triggers with a $73.50 buy-stop and a target to sell @ $77.75. Stop loss on a close below the breakout level.
KSS | Kohls Corp (and retail in general) continues to show relative weakness. After multiple consolidation days and a refusal to bounce with the general stock market, we continue to have the $39.75 sell-stop in place looking for a short sale and a target to cover @ $34.30
Stock Market Today: Heatmap of the S&P 500
Stock Market Today 1-26-17 | Thursday Edition
Dear Bernie, Meet the “Big Mac ATM” That Will Replace All Of Your $15 Per Hour Fast Food Workers
Dear Bernie, as you continue in your never-ending “Fight for $15”, we thought you might benefit from a simple example of how economics work in a real life, functioning, capitalistic society.
You see, Bernie, labor, much like your daily serving of crunchy granola, is just another “good” that businesses can choose to consume more or less of, depending on price. And, just to be crystal clear, when the price of labor (i.e. wages) increases, businesses tend to consume less of it.
U.S. stocks set for fresh records at the open with Dow plowing further above 20K
The momentum for U.S. stocks continued on Thursday, with stock futures pointing to fresh records at the open for all three major benchmarks ahead of a spate of earnings and economic reports, including jobless claims and home sales.
The benchmark DJIA, +0.78% on Wednesday reached the milestone for the first time ever, closing up 155.80 points to 20,068.51 over optimism over President Donald Trump’s policies and a solid round of corporate earnings.
Dow Chemical’s revenue rises 14 percent on Dow Corning deal
Dow Chemical Co (DOW.N) reported a 14 percent increase in quarterly revenue, helped by its move to take full control of Dow Corning, which was previously a joint venture with Gorilla glass maker Corning Inc (GLW.N).
Excluding the transaction, Dow’s sales rose 2.5 percent to $11.75 billion in the fourth quarter ended Dec. 31, with increases in four of five businesses.
Tesla at $40 billion ….Cheap?
Tesla is back over $250 and $40 billion in valuation.
I would say 95 percent of the investing public thinks the stock is OVERvalued. To put Tesla’s size in perspective, Apple is $630 billion and 95 percent of the investing public thinks the stock is UNDERvalued.
Uber passes Starbucks as business travelers’ no. 1 expense
Uber is officially the best friend of business travelers.
A new study found that 6% of all business travel transactions in 2016 were with Uber, making the ridesharing company the most common expense, in terms of transactions. Uber grabbed the honor from Starbucks, which remains the most popular meal expense.
10 things in tech you need to know today
Here’s What Forrest Gump And Lieutenant Dan’s Apple Investment Could Be Worth Now
Tom Hanks’ character Forrest Gump in the classic 1994 film “Forrest Gump” made a fortune in the shrimp industry.
His friend and partner Lieutenant Dan invested part of the proceeds from shrimp sales in “some kind of fruit company,” which was actually Apple Inc. AAPL and was called Apple Computer at the time.
Tape Reading the SPY ETF
$SPY new highs on a gap-and-go gave us an impressive couple of days.
Now what? What is the next trade?
Well DJIA 20,000 is out of the way. We need to see the stock market stay there now, maybe one more day of well-bid price action and then a pause. We need a pause on light volume, above the levels we just broke.
For day traders you need price action to stay above the open price. Stick to this reference point and you have solid trades. Be careful about bidding as stocks are trading lower. Buy-stops galore were hit yesterday. Orders sitting there for months.
Don’t get long because of a psychological 20K number, be long because you have profit potential that makes accepting the risk a smart move.
Google Earnings Call Watch: Pixel Phones, YouTube, Cloud
Google parent Alphabet (GOOGL) reports earnings after the close Thursday, with analysts looking to glean more insight into 2017 plans for Google’s Pixel smartphone, cloud computing and YouTube “Unplugged” TV service.
Higher marketing costs tied to the launch of Pixel-branded smartphones, which debuted in October vs. Apple’s (AAPL) iPhones, could pressure margins in Q4, analyst say. Estimates vary widely on how many Pixel phones Google sold in the December quarter.
Alphabet earnings: Google may shift focus to cloud as search business slows
Alphabet Inc. is expected to report double-digit growth in fourth-quarter earnings and sales when Google’s parent company unveils quarterly results after the market closes Thursday, but there are concerns that level of growth won’t be around for much longer.
Alphabet GOOGL, +0.19% GOOG, +0.25% is expected to show an increase in ad revenues despite ongoing pricing pressure exasperated by a decline in the amount Google receives when customers interact with an ad, a metric called cost per click.
What to expect from Alphabet’s Q4 earnings: Pay attention to those ‘other’ bets
Google’s parent company Alphabet will announce its fourth quarter earnings on Thursday afternoon. Here’s what you need to know, starting with Wall Street’s expectations […]
Stocks to Trade 1-26-17 | Thursday Edition
Short-Term Trading Momentum:
Bullish Momentum: CRC, LNG, BA, VRTX, WFC, DKS, NSC, KSU, ETN, PCAR, CNC
Bearish Momentum: stld, x, dfs
Quarterly Order Flow:
Bullish Stocks to Trade: STX, WDC, BA, NSC, BABA, AVGO, SLCA, FB, UNP, IBM, LYB, ADSK, ADBE, TSLA, NFLX, SWKS, CLVS
Bearish Stocks to Trade: rrc, vfc, kss, jwn, dg, oxy, lb, tgt, tjx, bmy, mnk
2x Normal Volume: STX, QCOM, AA, WDC, STLD, ATI, BA, LNG, STT, AVGO, DFS
Inside days: kmi, mrk, jd, mos, mos, cop, nwl, cof, lly, kss, cog, mcd, adm, agn, ctrp, mbly, fslr