Today’s Trading Education…
A gut-wrenching problem lies ahead for many traders.
Exiting winners too soon kills your confidence. The stock market puts us to sleep and makes us jaded when volatility remains low.
We book quick profits because they vanish if we don’t. If we don’t ring the register, we end up back at zero. We give back profits on a good idea. $500 becomes $50.
Certain market conditions call for a cash flow mindset, others provide better opportunity. Opportunity to hold trades longer and allocate more leverage.
If you’re booking profits the last 3 months, not building positions and holding fewer over nights, good for you.
But be ready.
When the market breaks out (or breaks down) your habits drive decisions instead of your trading plan. Don’t let this happen.
Plan today. How will you recognize when the market offers more? How will you trade it differently.
New traders hate losses. Experienced traders hate earnings less than they should.
Don’t be a hater. Be prepared.
On the Tape Today...
$HON consecutive days of consolidation sets up a trend day today. (see chart)
$ROST $65.25 buy-stop with a profit target to sell of $66.75
$C lower opens sets up the limit order buy @ $48.50 we called on Monday. $47.75 stop loss.
$DIS breakdown $91 sell-stop with a target to cover in the $87.50 area.
$HON 10-13-16 (Click to Enlarge)
Dow futures fall by 100-plus points as Fed, China fears bite
A selloff in U.S. stock futures was taking hold Thursday, pointing to a tumble at the open as investors found little to cheer in the Federal Reserve’s latest thoughts or in fresh Chinese economic data.
The selloff came after minutes from the Fed’s September meeting showed support for an interest rate rise soon, yet at the same time implied a go-slow approach. The minutes, out Wednesday, confirmed that policy makers have differing views, and a “divided Fed is really bad for the market,” said Naeem Aslam, chief market analyst at ThinkMarkets, in a note.
Mixed signals make it difficult for traders to craft a strategy, he added. So far this year, the S&P 500 has traded lower the day after the Fed minutes on all but one occasion, according to Bespoke Investment Group data.
Historically low interest rates have helped drive investors into stocks and other riskier assets, and another rate hike could help lead to the end of that trend.
But analysts have also noted that a rate rise would signal confidence in the U.S. economy, and they have highlighted how the stock market has tended to perform well in the earlier part of a tightening process.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 10-13-16 | $WYNN Earnings
Stock Indexes Little Changed, Shrug Off Fed Minutes
U.S. stocks kept to a narrow range Wednesday as the Federal Reserve’s latest minutes revealed increasing support for an interest-rake hike. Volume in the stock market today fell on both major exchanges.
Recently, losses have come in rising volume, while gains have come in declining volume. That’s the opposite of what bulls like to see. Banks, which are likely to benefit from higher rates, made no dramatic moves Wednesday.
Wells Fargo (WFC) and JPMorgan Chase (JPM) were nearly flat. Citigroup (C) trimmed 0.5%. Western Alliance Bancorp (WAL), a Phoenix-based midcap, advanced 0.6%. Blue chips were almost even between winners and losers. Dow components Nike (NKE) and McDonald’s (MCD) led with gains of about 1%.
In the S&P 500, Kroger (KR) grabbed the pole position with a 3% pop. A recent Morgan Stanley report said Kroger’s alternative formats have not been fully priced into the stock. Rumors also have swirled over a possible merger with Whole Foods Market (WFM).
Watch Video on investors.com
Tape Reading the SPY ETF
$SPY volume flip-flops with price action… Inside day, plus half the previous day’s volume, gives a bad clue for the bulls. Once again, I am not calling a stock market top, but the signs point to distribution.
Heavier volume on the days the market trades lower. Generally speaking accumulation or distribution are a potential change of trend. These patterns ruin more trading accounts than any type of price action. (Unless your strategy is buying support and selling resistance in a trading range)
The SPY $212 support level remains in play, with plenty of room to go. Don’t get lulled to sleep by a slow tape. Great traders stalk opportunity.
Trade for cash flow, but when the market finally bursts (for more than one day) make your week in one day.
Be ready, know your levels.
Stocks in Play: $WYNN research on finviz.com
(Photo credit http://www.hickerphoto.com/)
$WYNN NEWS: Wynn Resorts (WYNN) Q3 Earnings: What’s Up this Season?
Wynn Resorts Ltd. (WYNN – Free Report) is likely to report third-quarter 2016 numbers on Oct 13, after market close.
Last quarter, Wynn Resorts posted a 10.31% positive earnings surprise. In fact, the company’s earnings surpassed the Zacks Consensus Estimate in all of the last four quarters, with an average beat of 23.27%.
What to Expect When Wynn Resorts (WYNN) Reports Q3 Results
Wynn Resorts (WYNN) will post 2016 fiscal third-quarter results after Thursday’s closing bell.
NEW YORK (TheStreet) — Shares of Wynn Resorts (WYNN) were lower in early-afternoon trading on Tuesday as the company is slated to report 2016 fiscal third-quarter results after Thursday’s market close.
Wall Street is looking for earnings of 74 cents per share on revenue of $1.13 billion.
For the same period last year, the Las Vegas-based casino operator earned 86 cents per share and $996 million in revenue. Last week, Wynn reported upbeat Macau gaming revenue for the month of September.
Read More on thestreet.com
Steve Wynn Reveals Secrets to Success (WYNN)
Steve Wynn, chief executive officer of Wynn Resorts Ltd. (WYNN), was recently interviewed by CNN. This interview covered a wide range of topics, with two particularly intriguing thoughts from the resort mogul.
First, we’ll see what Wynn sees as the keys to success, then his opinion on the United States presidential election will be revealed.
Wynn believes that the keys to success include:
- Driving ambition.
- Doing something you’re good at.
- Doing something you love.
- Being fun to be around, especially when talking about your passion.
Continue Reading on investopedia.com
Stocks to Trade 10-13-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CCI
Negative last 20 and 5 trading days | closed 2% lower from the open: acad, endp, myl, twlo, agn, pbf
Quarterly Order Flow:
Bullish Stocks to Trade: EXPE>119.50, AAPL, NXPI, JWN, HAL, NVDA, AMZN, APC, PRU, MA, LVS, BHI, UNP, PE, SWKS, LRCX, REN
Bearish Stocks to Trade: acad, myl, pbf, celg, gild, teva, dis, mbly, axp, wmt, ctsh, lulu, cvs
2x Normal Volume: HON, AET
Inside days: aapl, ge, pg, jpm, fb, bsx, wmt, pypl, abt, cmcsa, fitb, ebay, crm, atvi, stx, jnj, schw, oxy, met, usb, v, utx, wba, ip, ma, pep, bhp, axp, dhr, duk, dhi, gis, bax, aep, sti, amzn, coh, amgn, cag, dg, pru, dfs, de, mar, vfc, hig, vmw, mon