Stock Trading Today 1-4-17 | Trump Fights Automakers

Today’s Trading Lesson…

Trading Plan Template

A trading plan is an outline successful traders use to keep focused on decisions with a high probability for profit. The trading plan also eliminates trading scenarios that do not meet your edge.

The outline consists of two core components:

  1. The trading system, method or process that defines your trading edge, which includes buy or sell signals.
  2. Money management and risk management parameters that match your skills and resources.

Finally your trading plan includes which markets (or securities) to trade, your goals, your emotional characteristics and then chooses a trading style.

GET THE COMPLETE TEMPLATE AND WATCH THE STRATEGY VIDEO == >>

On the Tape Today...

URI 1-4-17

URI 1-4-17

$URI | United Rentals offers clear room to go for a new swing trade. As mentioned below, the breakouts are failing but the close remained solidly above the open and near the breakout level. Looking for a $110 buy-stop with a swing trade target to sell @ $119.

JWN 1-4-17

JWN 1-4-17

$JWN | Nordstrom continues to offer a solid short sale, the stock simply hasn't followed through...yet. Looking for a $47.25 sell-stop with a swing trade target to cover in the $44.25 area. This stock gives us a solid example of why you need to keep a tracking journal. Price action moves slowly but the trade remains valid.

5 Habits of the Wealthy That Helped Them Get Rich

Stock Market Today: Heatmap of the S&P 500

SP 500 1-4-17

SP 500 1-4-17

Stock Market Today 1-4-17 | Wednesday Edition

Amazon doubles deliveries in 2016 for third-party sellers

Amazon.com Inc (AMZN.O) shipped 50 percent more items this holiday season than last for third-party vendors and doubled the amount for 2016 overall, the retail giant said on Wednesday.

reuters.com

Trump Tells DHS To Prepare For Border Wall Construction

A memo from the Department of Homeland Security, which was recently reviewed by Reuters, suggest that the Trump administration plans to hit the ground running on the construction of that U.S.-Mexico border wall when they move into the White House later this month.

zerohedge.com

Is Apple A Rotting Tech Company, Or A Value Play That Will Bear Fruit For Years To Come?

Apple (NASDAQ:AAPL) has changed from a high growth tech giant into a consumer products company and we are okay with that. Apparently, so is Mr. Buffett’s Berkshire Hathaway […]

seekingalpha.com

Eurozone inflation surges to 1.1% in December

The annual inflation rate hit 1.1% last month, according to official statistics agency Eurostat, a sharp jump from November’s rate of 0.6%.

The rate is the highest since September 2013, when inflation was also 1.1%.

bbc.com

Oil prices rise on signs OPEC members will stick to output pledges

Oil futures climbed on Wednesday, rebounding slightly from the prior day’s sharp selloff on signs that major oil producers are sticking to their pledge to cut output.

On Tuesday, both contracts staged a sharp reversal from their highest levels in about 18 months to mark their lowest settlement in about two weeks. The selloff came as traders grew anxious about […]

marketwatch.com

Wild Winter Burns Traders Betting on Models That Can’t Keep Up

There has been talk for some time that inconsistent, volatile and downright confusing weather patterns would loom over the U.S. this winter.

Traders in the natural-gas market can now attest to that. After they drove future contracts to a two-year high last week on expectations of a cold snap setting in across much of the country, the bottom fell out of the market Tuesday when […]

bloomberg.com

Coming to Carnival Cruises: A Wearable Medallion That Records Your Every Whim

DORAL, Fla. — Inside a clandestine Carnival Corporation complex here, two former Disney executives have been plotting a drastic cruise industry overhaul.

Their mission: Take lessons learned at Walt Disney World, where they helped bring about a $1 billion vacation management system involving Fitbit-style bracelets that link to personal information, and apply them to cruises.

nytimes.com

Which Stocks Are Trump Impacting?

Here is funny little question for you: What specific companies are being impacted by PeOTUS Trump?

I don’t mean by his policies, I am referring to the man himself. Here is a short list I assembled:

ritholtz.com


Tape Reading the SPY ETF

$SPY returned with solid volume but weak bullish follow through.

Not much to make here other than wait patiently for a channel breakout. The hourly chart shows opportunity over the $225.50 level but the daily chart shows a three week trading range.

Last week I discussed new all-time highs as the next leg for increased profit potential and that hasn’t changed. The longer term bullish order flow remains intact so a lower open actually increase “room-to-go” on new long positions.

The stock market witnessed the limited upside yesterday with the higher open and subsequent down trend for most of the day. My game plan for yesterday clearly outlined a scenario for a lower open, which was the better opportunity for a day trade.

With many stocks in bullish order flow, but trading ranges, the better trade right now calls for trading pull-backs.

Most break outs will fail until the general market picks a direction. 

$SPY 1-4-17 Hourly Chart

$SPY 1-4-17 Hourly Chart

Auto industry’s relationship with Trump takes dramatic turn

FLAT ROCK, Mich. (AP) — The auto industry’s relationship with President-elect Donald Trump took a dramatic turn Tuesday as Ford Motor Co. decided to shift investment dollars targeted for Mexico to the U.S., while Trump threatened General Motors with a tax on some imported small cars.

Ford is canceling plans to build a new $1.6 billion factory in San Luis Potosi, Mexico, and will instead invest some of that money in a U.S. factory that will build new electric and autonomous vehicles.

finance.yahoo.com

Automakers face risk of unintended consequences, expert warns

After President-elect Donald Trump blasted General Motors for making a Chevy Cruze model in Mexico and Ford canceled plans to build a $1.6 billion plant south of the border, one auto expert had a warning for the industry on Tuesday.

Paul Ingrassia, editor of the Revs Institute for Automotive Research, believes there is a “real risk” in the law of intended consequences.

cnbc.com

Opinion: Donald Trump can bully auto makers all he wants, but he can’t repeal the laws of economics

Donald Trump meant what he said during the campaign about trying to keeping American jobs in America.

As the opening salvo in his “Make America Great Again” playbook, the tweeter-in-chief has been shaming American companies that offshore high-paying American jobs to factories in other countries, with some apparent minor successes that will do more to burnish Trump’s reputation as a dealmaker than they will to help working Americans struggling to make ends meet.

marketwatch.com

$GM 1-4-17 trump bullies automakers

Stocks to Trade 1-4-17 | Wednesday Edition

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: MBLY, ABC, MCK, FSLR, CERN, STX, GILD, CAH, NFLX, ADSK, AEM, LNG

Negative last 20 and 5 trading days | closed 2% lower from the open: twlo, rrc, fnsr, gpor, m, ntnx, sm

Quarterly Order Flow:

Bullish Stocks to Trade: URI, TRGP, VLO, WDC, TSLA, LRCX, DE, PNC, IBM, KMX, SLCA, CVXM ADNT

Bearish Stocks to Trade: twlo, gpor, m, ntnx, mdt, expe, jwn, kors, dltr, urbn, mnk, 

2x Normal Volume: NVDA, MPC, TWLO, RRC, MBLY, GPOR, CLVS

Inside days: csco, msft, x, orcl, ebay, tgt, aa, bbby, adbe

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