Today’s Trading Lesson…
Stock Trading Profits How to Earn More | Podcast Episode #10
A common debate that we have in the pre-market game plan meeting is whether or not to trade a stock in a trading range.
My goal as the mentor, is to improve stock trading profits and to foster a healthy discussion about the quality of the trade scenario. A secondary goal is to do this without discouraging a trader from presenting their ideas.
This balance of mentor and tough love isn’t easy.
The stock in question, is usually a favorite of the trader. I always bring the debate back to the question, “is that your best opportunity right now?”
The trader wants to build a case to bid support and short-sell resistance.
An argument is made because there is an obvious reference point to manage risk.
A trader with this misguided thought process will find it hard to be successful. The difference between a high probability trade and well defined risk cannot be overstated.
On the Tape Today | 1-30-17
WDC | Western Digital showing a solid gap and pause after new highs. Friday's inside day gives us a textbook breakout trade with an $80 buy-stop. If the stock price trades lower on the open I plan for a breakout (long) of the first 30 minute candlestick. $83 is the initial target to sell
LB | L Brand showing on Friday why it's important to keep a day-to-day tracking journal. Solid bearish momentum and trend day on Friday setting up a new short-sale today on a $58.75 sell stop. Target to cover @ the $54.75 area.
Stock Market Today: Heatmap of the S&P 500
Stock Market Today 1-30-17 | Monday Edition
Dow poised to dip below 20K as wary investors eye Trump, earnings
Fed meeting, data will also command attention this week
Stock futures pulled back Monday, indicating that the Dow industrials’s delicate hold on the 20,000 level could be put to a test as investors prepare for a heavy week of data, a Fed meeting and plenty of important company results.
Citigroup Plans to Exit Mortgage Servicing by End of Next Year
Citigroup Inc. plans to exit the mortgage-servicing business by the end of 2018 to focus on loan origination.
The company reached an agreement to sell the servicing rights on loans with $97 billion of outstanding balances to New Residential Mortgage LLC, the New York-based company said Monday in a statement.
Global Stocks, Futures Slide On US Protectionism Worries Following Trump Travel Chaos
European, Asian stocks and S&P futures all drop after traders were left with a sour taste from the potential fallout of Donald Trump’s order halting some immigration and ahead of central bank decisions from the U.S. and Japan. Markets in Hong Kong, China, Malaysia, Korea, Singapore, Taiwan and Vietnam are all shut due to […]
Starbucks pledges to hire 10,000 refugees
Starbucks says it plans to hire 10,000 refugees over five years in the 75 countries where it does business.
Chairman and CEO Howard Schultz outlined the company’s plan in a memo sent to employees Sunday in response to President Trump’s executive order banning travel from seven Muslim majority countries.
How to Make the Changes That Will Change Your Trading
I strongly encourage you to check out this month’s Forbes article and its links, which show how much change we’re capable of and how we can make those changes.
Brokers Put Trading Tools Of The Elite Into Hands Of The Average Investor
Robert Webb has schooled generations of entry-level traders, teaching courses on trading and the nature and structure of markets at the University Of Virginia’s McIntire School of Commerce.
He has watched trading technology advance to where the average soul on the street can use tools once reserved for the market’s most elite actors.
Oil slides as strong U.S. drilling activity weakens deal to cut output
Oil prices fell on Monday as news of another increase in U.S. drilling activity spread concern over rising oil output just as many of the world’s oil producers are trying to comply with a deal to pump less in an attempt to prop up prices.
Google has set up a $4 million emergency fund to fight Trump’s immigration ban
Google has created a $4 million (£3.2 million) emergency immigration fund to help employees affected by President Trump’s new immigration policy, USA Today reports.
Computer outage grounds Delta flights in U.S.
Delta was hit by a crippling computer outage on Sunday night that caused big delays and the cancellation of at least 150 flights.
It’s the second time in less than six months that the U.S. carrier has suffered a major IT problem resulting in travel chaos and angry passengers.
Brokers’ Customer Service Matters, Even In Online Trading Age
Even the self-directed investor needs help sometimes.
Just look at the results of Investor’s Business Daily’s 2017 Best Of Online Brokers report if you want proof. It shows customer service as No. 5 in importance to investors out of 24 attributes. It seems the adage is true that the more things change, the more they stay the same.
Elon Musk really isn’t as aligned with Trump on manufacturing as it seems
Elon Musk is getting cozy with the Trump administration.
Musk, the CEO of Tesla and SpaceX, is now part of two advisory committees under President Donald Trump: the economic advisory board and the Manufacturing Jobs Initiative.
Snapchat to reveal financials within a week: sources
Snap Inc, the secretive technology company that owns the popular messaging service Snapchat, is due to reveal its financials within a week as it moves toward its eagerly awaited initial public offering (IPO), sources familiar with the situation said on Friday.
Tape Reading the SPY ETF
$SPY produced another light volume day on Friday (sub-56 million shares traded).
From a pure technical angle, this should be a good setup for follow through. Waiting to see if it’s an inauguration bump or real buying through new all-time highs.
Today’s game plan looking for a lower open to find support int he $228 area. I planning to bid the support if we see a clear bottom tail on the 15 minute chart of a breakout of the first 30 minutes.
If the stock market trades lower and does not find support, the game plan remains a better short in the retail sector an biotech.
If the market finds the bid we expect, on the long side, NASDAQ remains the relative strength leader.
FOMC Meeting Highlights This Week
Trading The U.S. FOMC Interest Rate Decision, February 1, 2017
US FOMC Interest Rate decision and the BLS Nonfarm Payroll reports are focuses for the week.
With the Fed likely to take a pause after December’s rate hike, we should not see any change in Federal Funds Rate today; however, on a surprise rate hike/cut, we will see extreme market volatility […]
Trump Era May Mean Fireworks on Fed Days Despite Better Guidance
U.S. Federal Reserve officials were on a roll communicating their intentions to financial markets until December, when even a well-advertised interest-rate hike triggered a big sell-off in the bond market.
US Dollar Still in Trump Watch Mode as FOMC, Key Data Loom
The week ahead brings with it the return of heavy-duty economic event risk.
The Fed’s favored PCE inflation data, the ISM manufacturing activity survey and January’s jobs report are just the standouts on the data front. In the midst of all this, the rate-setting FOMC committee will deliver an update on its policy stance.
Stocks to Trade 1-30-17 | Monday Edition
Short-Term Trading Momentum:
Bullish Momentum: RRC, ADI, AMGN, NFLX, VRTX, AEM
Bearish Momentum: aal, clr, rh, lb, jwn, kss, dltr, fslr, vfc, dal, esrx, dks, cvs, dg
Quarterly Order Flow:
Bullish Stocks to Trade: AMGN, NFLX, VRTX, CAT, STX, WDC, CLVS, SWKS, ADBE, AVGO, NSC, ADSK, PNC, HD, LYB, BABA, IBM,
Bearish Stocks to Trade: rh, lb, jwn, kss, dltr, fslr, vfc, esrx, hes, cvs, tjx, eqr, tgt, xom, qcom, bmy
2x Normal Volume: AAL, CL, MAT, ESRX, WYNN, TROW, DISH
Inside days: bmy, csx, mat, lvs, ms, azn, hal, nbl, celg, utx, crm, ctrp, dd, bhi, adbe, pnc, de, qcom