Today’s Trading Lesson…
Black Monday: The Stock Market Crash of 1987
by Donald Bernhardt and Marshall Eckblad, Federal Reserve Bank of Chicago
The first contemporary global financial crisis unfolded in the autumn of 1987 on a day known infamously as “Black Monday.”1 A chain reaction of market distress sent global stock exchanges plummeting in a matter of hours.
In the United States, the Dow Jones Industrial Average (DJIA) dropped 22.6 percent in a single trading session, a loss that remains the largest one-day stock market decline in history.2 At the time, it also marked the sharpest market downturn in the United States since the Great Depression.
On the Tape Today...
$YHOO head and shoulders top, neck line break @ $41.50, $39 target to cover. (see chart)
$WMT bear flag $69 limit order sell-short with a target to cover @ $67.20
$MCD sell short, minor support @ $110, target to cover @ $105.75.
$GS $173.50 buy-stop, swing trade target to sell @ $184. ** Wait for buy-stop to trigger, $172 false breakout territory.
$YHOO 10-19-16 (Click to Enlarge)
Morgan Stanley, housing starts could help decide direction for Wall Street
Halliburton, Morgan Stanley, Supervalu to report
Stock futures traded flat on Wednesday, as investors looked for direction from earnings to come from corporate heavyweights such as Halliburton Co. and Morgan Stanley, as well as housing starts data.
Wednesday marks the 29th anniversary of Black Monday, when on Oct. 19, 1987, stock markets crashed around the world.
Data showing U.S. crude inventories likely fell in the week ended Oct. 14 were helping to lift prices. Official data will be released later from the Energy Information Administration.
Data ahead: Housing starts and building permits for September will be released at 8:30 a.m Eastern Time. The Federal Reserve’s Beige Book will be released at 2 p.m. Eastern.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 10-19-16 | $MS Earnings
Stocks Post Solid Gains As Netflix, Domino’s Soar; Intel Falls After Hours
Stocks closed off session highs but still scored solid gains Tuesday, fueled by big earnings-related moves from Domino’s Pizza (DPZ), Netflix (NFLX) and UnitedHealth Group (UNH). Movie-related stocks, medical issues and gold miners rallied in the stock market today.
Netflix, which received multiple price target increases from analysts, gapped up and soared 19% to a nine-month high in fast turnover. UnitedHealth surged 7% to lead the Dow and reclaim its 50-day moving average in big volume.
Watch Video and Read More on investors.com
Tape Reading the SPY ETF
$SPY price action closed below the open for the third consecutive day. I would love to say this is bearish. I would love to say hit the bid, get short and hold to the close.
But I can’t. The stock market remains range-bound.
Thankfully earnings season and specifically $NFLX yesterday provided some volatility to earn some money. Stocks melting lower after the open makes it hard to have conviction.
If you feel this way, lower share size. Scan the list of stocks below, especially the stocks with momentum.
Find a few that match your personal criteria, and look for one more day of follow through.
Stocks in Play: $MS research on finviz.com
$MS Earnings NEWS: Morgan Stanley (MS) Stock Up Ahead of Q3 Results
NEW YORK (TheStreet) — Shares of Morgan Stanley (MS) were increasing in late-morning trading on Tuesday ahead of the company’s 2016 third quarter earnings, due out before tomorrow’s opening bell.
Wall Street is expecting earnings and revenue to rise year-over-year.
Analysts surveyed by FactSet are forecasting that the New York-based investment bank will report earnings of 63 cents per share on revenue of $8.13 billion.
During the same quarter a year ago, Morgan Stanley earned 34 cents per diluted share on revenue of $7.77 billion. Non-GAAP revenue was $7.33 billion.
Watch Video and Read More on thestreet.com
$MS | What to Expect in Morgan Stanley Q3 Earnings
Investment banking giant Morgan Stanley (MS) will report third second quarter earnings before the opening bell Wednesday.
Morgan Stanley will need to show significant revenue improvements within its trading business and FICC (fixed income, currencies and commodities) segments, which have offset positive gains in corporate bond revenues.
Read More on investopedia.com
Stocks to Trade 10-19-16 | Wednesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: UAL UNH, HOG, CLVS
Negative last 20 and 5 trading days | closed 2% lower from the open: yelp, dlph, ions
Quarterly Order Flow:
Bullish Stocks to Trade: GS, EA, HCA, AAL, HAL, APA, NVDA, LRCX, SWKS, LUV, ADBE, EXPE, APC, UNP, AAPL, DISH, PRU, PE
Bearish Stocks to Trade: dlph, mcd, ions, mbly, tjx, hon, kmx, acad, wba, cost, axp, low, dis, rh, gild, teva, twlo
2x Normal Volume: NFLX, IBM, JNJ, UAL, UNH, HOG
Inside days: t, ebay, amat, hal, luv, cog, jci, nke, rai, jd, dvn, gis, bbt, skx, mat, hd, bby, cfg, lly, wdc, wba, coh, hes, hbi, jwn, gme, hrb, kim, dg