Today’s Trading Lesson…
How Develop Your Trading Strategy for the Long-Term [PODCAST]
Your trading strategy should be the first thing to develop. Unfortunately most of us jump headfirst into risking money with no real plan.
A troubling thought isn’t it?
Strategy has always been a tough word to wrap our heads around. It’s a military term that has mostly been adopted into business and sports. The confusion gets deeper because most people can’t differentiate between a strategy and it’s cousin the tactic.
Trading Strategy Defined
Strategy is allocating resources to achieve a goal. Tactics are the steps to achieve the strategy. A trading strategy considers your resources and outlines the best path to for you to earn money.
The GIANT problem for most traders is the neglect to include experience, education, training, risk tolerance along with risk capital into our strategy. When most of us begin, our strategy is “figure it out before I have to get a real job.”
On the Tape Today...
$ACAD | Acadia Pharma broke both a long-term down trend and the $30 resistance level. With solid volume on the breakout (what we cal an energy candlestick) and solid profit potential, keep this in your tracking journal. I am not looking to chase yesterday's price action. Planning for a $30.50 limit order and a swing trade target to sell of $35.75 if filled.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 1-5-17 | Thursday Edition
U.S. stock rally hits pause ahead of key jobs figures
U.S. stock futures were struggling for direction on Thursday, with traders cautious of making a fresh push into record territory ahead of key jobs data due later in the session and on Friday.
“We must be careful with the strength in equity markets, the upside has been undoubtedly strong, and for me a little too strong,” said James Hughes, chief market analyst, at GKFX, in a note.
Did Chuck Schumer Just Threaten Donald Trump?
As the financial crisis jolted the nation in September, Senator Charles E. Schumer was consumed. He traded telephone calls with bankers, then became one of the first officials to promote a Wall Street bailout.
The Importance of Trading With Focus
I inadvertently conducted an interesting experiment yesterday while trading. I traded from an enclosed office that was totally quiet and free of distraction. Interestingly, that’s similar to the setting in which I typically conduct my meditation and biofeedback work.
Apple invests $1 billion in massive tech fund
Apple’s latest tech investment may come with the added bonus of getting in Donald Trump’s good graces.
Apple (AAPL, Tech30) confirmed on Tuesday that it is investing $1 billion in a massive new technology fund from Japan’s SoftBank Group, which has recently drawn the attention of the president-elect.
U.S. small business borrowing rises as Trump elected president
Borrowing by small U.S. firms ticked up in November, data released on Thursday showed, as Americans unexpectedly elected Republican Donald Trump as their next president and investors bid up U.S. stocks on bets that tax cuts will boost profits.
The Thomson Reuters/PayNet Small Business Lending Index rose to 129.9 in November from a downwardly revised 119.8 in October. Measured from a year earlier, it was the first increase in six months.
Uber Doesn’t Want to Give NYC (or Anyone) More Data
Uber Technologies Inc. is starting off the year preparing for a new political fight. As New York City seeks more information about ride-hailing drivers’ activities, it’s shaping up to be Uber’s second major conflict with the administration of Mayor Bill de Blasio.
European stocks wobble around 1-year high as euro climbs after Fed minutes
European stock markets seesawed between gains and losses on Thursday, with traders taking a cautious approach as they digested minutes from the U.S. Federal Reserve’s December meeting.
Tape Reading the SPY ETF
$SPY price action held the gap and melted higher without a significant catalyst.
Yesterday we discussed profit potential on new longs, today that potential in the $SPY shows $2. $226.50 stretching to $228.50 gives you a solid trade expectation coming into today.
Continue to look for new longs but, be aware the $SPY ATR (average true range) is just below $1.50. The closer we get to these levels, the lower your trade expectation gets.
What this means for trade management:
- Do not add to new longs as the $SPY gets closer to $228.
- Exit momentum into indecision candlesticks (such as a doji)
The better trades continue to unfold on the long side. Keep you short list ready but don’t pull the trigger unless the $SPY trades below the open.
Macy’s announces plans to close 68 stores, cut more than 10,000 employees
Macy’s shares M, +1.73% fell 5% after hours Wednesday after the department-store operator announced 68 store closures and issued a profit warning.
It said the store closures would eliminate 3,900 jobs, while a restructuring in early 2017 would result in the cutting of 6,200 employees. The majority of the 68 store closings are slated to take place in 2017 and are part of the planned 100 closings announced in August 2016.
Macy’s to sell San Francisco Stonestown Galleria store to mall operator for $41M
Macy’s will sell its 280,000-square-foot San Francisco Stonestown Galleria store to General Growth Properties (NYSE: GGP) for $41 million, as part of the company’s broader effort to shutter 100 stores and reduce its brick-and-mortar presence.
Macy’s (NYSE: M) will lease back the Stonestown location for an undisclosed amount of time while General Growth, which operates Stonestown, develops plans for the location, according to a press release.
Stocks to Trade 1-5-17 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: ACAD, X, TSLA, LULU, DLPH, ALXN, KMX, VRTX, ABC, MBLY
Negative last 20 and 5 trading days | closed 2% lower from the open:
Quarterly Order Flow:
Bullish Stocks to Trade: X, IONS, CLVS, KMX, NVDA, ADSK, DE, COF, WDC, NFLX, IBM, PNC, ADNT, GS, TRGP,
Bearish Stocks to Trade: dltr, ctrp, urbn, kors, mdt, gpor
2x Normal Volume: CC, TSLA, MBLY, ACAD, CLVS, LULU
Inside days: nvda, jpm, wfc, amat, cog, nem, cvs, met, cvx, hal, qcom ,twlo, cop, rrc, wfm, mar, cat, unp, apc, rost, aet, gs, ntap, mur, ftnt, apa, pnc, ual, bhi, ups