Today’s Trading Education…
Learn this trading skill and everything changes.
Most traders struggle because of lazy criteria. They don’t “look to the left” with enough intensity.
You want obvious. The more obvious, the more conviction you should have. Force your trading ideas to be obvious, or don’t put them in your game plan.
Chart #1: Not obvious, BUT meets all criteria for a long.
Chart #2: Recent Momentum But no Order Flow (A trading range since the August gap)
Chart #3: Order Flow, Momentum, Room to Go
On the Tape Today...
$KR showing relative strength and accumulation. A close above $30.50 breaks the down trend. (see chart)
$NKE consolidation sets up a $51.50 sell-stop with an initial target to cover at $49.25
$LOW swing trade short sale below yesterday's low with a target to cover @ $63.
$DIS showing signs of accumulation but the down trend remains intact. Short sale with a target of $86.25. If buyers step up, the $94-98 swing trade long is the play.
$KR 10-12-16 (Click to Enlarge)
Struggling to recover from bruising losses, U.S. stocks look to Fed minutes for relief
Wall Street stocks were suffering a hangover Wednesday after the harshest day of selling in weeks, with investors looking ahead to Federal Reserve minutes and speakers for potential relief.
Fed on tap: Investor focus will zero in on minutes of the Federal Open Market Committee’s September meeting, due for release at 2 p.m. Eastern Time. Views that the Fed might be more inclined to raise interest rates in December have been a big driver for the dollar, analysts pointed out.
“The developments in stance are usually rather subtle, but if this document offers up any fresh clues over policy, then we can expect another reaction from the U.S. dollar,” said Tony Cross, market analyst for TopTradr, in a note to clients.
Stocks to watch: Amazon.com Inc. AMZN, +0.12% plans to introduce convenience stores and curbside pickup locations as it pushes deeper into the grocery business.
The move puts the online retailer in competition with Wal-Mart Stores Inc. WMT, -0.87% WMT, -0.87% The Wall Street Journal reported.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 10-12-16 | $AMZN the Grocery Store?
Bears Come Out In Force, As Stock Indexes Plunge
U.S. stocks dived Tuesday as broad losses spared few issues. Losers led winners on the NYSE by a 7-1 ratio and by 5-to-1 on the Nasdaq. The S&P 500, which had been trying to retake its 50-day line, gave up the battle Tuesday as the index darted below the key line.
The next natural test on the chart is 2,119, where the index found support in September.
Meanwhile, the Nasdaq barely closed above its 50-day line. Blue chips were down almost without exception. In the Dow, 28 of the 30 stocks fell. Intel (INTC) incurred one of the deeper dents, down almost 2% in volume about 20% above average.
Apple (AAPL) defied the day’s downward momentum. Apple rose 0.3% in heavy volume, but that included a negative reversal. The stock had been up 2.3% in the first 10 minutes after the open. General Electric (GE) was the other gainer in the Dow.
Continue reading on investors.com
Tape Reading the SPY ETF
$SPY traded 2.5 Monday’s volume on Tuesday. Two and a half times the volume, with a trend day.
All systems go right? Fire up the short-sale key? Yes and not yet…
We previously mentioned the stock market needs to follow through. We want more than one day of obvious price action. Yesterday’s trading was a start, but a smart trader wants more.
Yesterday gave us a distribution day. Now we require “well-offered” to sit up in our seat and say “Hmmm.” (lower highs and lower lows)
Here’s what to look for today:
- Below yesterday’s low.
- Below today’s open price.
- Above average volume (85 million is average as of today)
- A break and close below $212.
This is your stock market game plan today. If it happens, be awesome. Hold trades a little longer, squeeze your short-sales, maybe even take multiple positions. (see list below)
If it doesn’t trade for cash flow.
Stocks in Play: $AMZN research on finviz.com
$AMZN NEWS: Amazon to add to grocery business with convenience stores, curbside pickup
Amazon.com Inc. is pushing deeper into the grocery business with plans to introduce convenience stores as well as curbside pickup locations, say people familiar with the matter.
The Seattle company AMZN, +0.12% aims to build small brick-and-mortar stores that would sell produce, milk, meats and other perishable items that customers can take home, these people say.
Primarily using their mobile phones or, possibly, touch screens around the store, customers could also order peanut butter, cereal and other goods with longer shelf lives for same-day delivery.
An expanded version of this report appears on WSJ.com.
Amazon Pushing Deeper Into Grocery Business With New Store Plans
Amazon (AMZN) reportedly plans to build small brick-and-mortar stores that would sell perishable items as it pushes deeper into the grocery business and poses an increasing threat to Wal-Mart (WMT).
Amazon plans to develop convenience stores as well as curbside pickup locations, the Wall Street Journal reported, citing people familiar with the matter.
Indications that Amazon is deploying plans where customers can order groceries online and pick them up at a company facility could add billions in revenue to the e-commerce giant, says Pacific Crest Securities.
Stocks to Trade 10-12-16 | Wednesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open:
Negative last 20 and 5 trading days | closed 2% lower from the open: stx, mbly, rh, pbf, prgo, car, crm, mdt, dlph, mrk, kmx, mchp, bidu, amgn, twlo, yum
Quarterly Order Flow:
Bullish Stocks to Trade: PE, AAPL, LVS, JPM, PRU, UNP, CAT, SWKS, APC, DISH, MA, AMZN, EOG, HAL, NVDA, BHI, REN, CLR, APA, LRCX, WDC
Bearish Stocks to Trade: mbly, pbf, kmx, celg, gild, aet, axp, kors, vfc, duk, myl, aep, low, acad, utx, mar, ctsh, teva, dg, wmt, d, dis, bmy, cvs
2x Normal Volume: CRM, STX, MDT, HON, YUM, LRCX
Inside days: vz, syf, dvn, momo, su, se, d, kss, jwn, wnr, tmus