Today’s Trading Education…
Mentor Minutes | How to Develop High Probability Scenarios…
Winning Trades have a structure. Top traders make money because they have a trading system. Watch how professional traders use order flow, momentum and tape reading to identify the best trading opportunities.
The key take-away from the meeting; is understanding the reasons why a trade might be a good idea, but also why it may not be a good idea right now.
On the Tape Today...
$BA $136 buy-stop with a swing trade target to sell @ $144.75 (Day trade to that level) (see chart)
$WMT $67.70 sell-stop with a gap-fill buy to cover at $66.25
$LUV $40 buy-stop with a target to sell @ $43.50.
$NKE $51.50 sell-stop with a target to cover @ $49. Obvious support at the trigger, wait for your price, do not enter early.
$BA 10-11-16 (Click to Enlarge)
Losses on tap for Wall Street stocks as oil backs away from highs
Alcoa unofficially kicks off earnings season ahead of the bell.
U.S. stock futures pointed to moderate opening losses on Tuesday, coming under some pressure as investors cashed in on recent gains for oil prices.
Earnings were in the spotlight, with the unofficial start of the reporting season due to kick off with Alcoa Inc. later.
WTI crude CLX6, -0.51% fell 31 cents to $51.03 a barrel on Tuesday, a day after marking a $51.35-a-barrel close, the highest since July 15, 2015. Oil rallied on bullish comments Monday from Saudi Arabia’s energy minister and Russian President Vladimir Putin.
Major oil producers are meeting in Istanbul to try to lay the ground for a deal to cap production.
Shares of Twitter Inc. TWTR, -11.54% rose 2.7% in premarket trading. Shares plunged 12% on Monday after a Bloomberg report said top bidders for the social network had dropped out.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 10-11-16 | $AA Earnings
Stocks Up In Fading Trade; Solar Could Be Clinton Play
U.S. stock indexes posted solid price gains Monday, but volume fell far off Friday’s already lackluster pace.
Blue chips were mostly up. In the 30-stock Dow, Apple (AAPL) and Exxon Mobil (XOM) led the pack with 2% gains each. The day’s worst performer in the Dow was Wal-Mart Stores (WMT), which fell 1% in soft trade. Wal-Mart has fallen in six consecutive sessions.
On Friday, RBC Capital lowered the price target on Wal-Mart from 76 to 75 with an underperform rating.
Solar companies also could benefit if Hillary Clinton wins the presidential election. Clinton is promising subsidies for solar that could cost anywhere from $27 billion to $62 billion, according to analysts.
Continue reading on investors.com
Tape Reading the SPY ETF
$SPY traded into a doji candlestick on a pathetic 50 million shares.
If you’re new to trading that volume represents half of what we need for a relevant analysis. At this point the story remains the same.
Wait for a breakout or breakdown. The low volatility since July (other than a few days after Labor Day) give you an opportunity to improve your stock picking scans and skills.
Don’t complain, it is what it is. This tape calls for grinding out cash flow. Pay attention and ring the register.
If you need help finding and managing trades, some training from previous blog posts.
Stocks in Play: $AA research on finviz.com
$AA Earnings NEWS: Alcoa Stock Rises Ahead of Q3 Earnings (AA)
Alcoa Inc. (AA) is set to report third quarter fiscal 2016 earnings results after the closing bell Tuesday. Alcoa shares closed Friday at $31.37, down 1.29%. This translates to a rise of 3.09% over the past five days and 12% increases over the past three months.
Wall Street expects the aluminum and aerospace giant to deliver a year-over-year increase in earnings per share, while revenue is expected to decline.
Continue Reading on investopedia.com
Alcoa’s Last Earnings Call Before Split to Tout Parts Prospects
Alcoa Inc.’s chief has one more chance to show investors why he’s unchaining the company’s parts businesses from its legacy metal-making operations, even as a slowdown in the aerospace industry threatens to undercut the move.
On Tuesday, Chief Executive Officer Klaus Kleinfeld delivers the last earnings call to investors before 128-year-old Alcoa splits. From Nov. 1, the iconic name will be used by a new company, Alcoa Corp., that will hold its legacy metal-processing business. The value-added parts operations will go by the name Arconic Inc., to be headed by Kleinfeld.
Investors have cheered the move after a flood of cheaper imports put a strain on the metal-making unit.
Read More on bloomberg.com
Stocks to Trade 10-11-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CTRP, UAL, FSLR, JUNO, AAL, DVN, ENDP, SM, CRM, MOMO
Negative last 20 and 5 trading days | closed 2% lower from the open: twlo
Quarterly Order Flow:
Bullish Stocks to Trade: MOMO, UAL, SM, PE, CTRP, BABA, HAL, NOV, TGRP, LRCX, AAPL, APC, CLR, APA, LVS, EA, YELP, WDC, DISH, SWKS, BHI, EOG, JPM, REN, PRU, MA, NVDA, AMZN, STX, CAT, STPT, UNP
Bearish Stocks to Trade: bmy, kors, wmt, lulu, dg, teva, ctsh, abc, gild, cci, cvs, duk, aep, vfc, acad, myl
2x Normal Volume: TWTR, BMY, CRM, MRK, MYL, HON, CLVS, MOMO
Inside days: pfe, aa, v, gild, nke, nem, dis, vlo, ppl, cat, azn, dhi, slw, mat, wfm, pep, bk, ctsh, wba, cbs, hfc, exc, kim, duk, ma, ea, lyb, fslr, wy, rost, amzn, dltr, nue