Today’s Trading Lesson…
The first time I traded in an office was like going to Disney Land. Watching professional traders gives you wisdom you can never get from books, seminars or chat rooms.
Watching a pro handle positions, emotions, research, game planning, winning and losing amazes you. A trading pro is like an athlete. Professionals go about their business in a repeatable fashion.
Most traders never get the opportunity to experience a professional trading floor, and that’s a shame…
Trading in a chat room with hundreds of other traders isn’t the same. The idea for today’s trading education came from a recent coaching call. The trader “knows everything,” but doesn’t understand how to trade.
He remains stuck in neutral.
Professional traders trade. And make adjustments. We expect to make adjustments. We expect to see unprofitable trades. We expect to make money over time.
We trade and adjust. We simply go about our business. We don’t obsess over the perfect entry price, or ask questions about the exact signal to exit at the exact moment.
Trading is like driving. Get behind the wheel, set your destination and make adjustments. You can’t learn by reading yourself to death. I know, I tried.
Develop your edge and trade. Don’t overthink it, but trade. Trade your ass off when ideas match your strategy.
Don’t hesitate, don’t second guess and don’t think you need to know more.
Professional traders trade. You want to earn money like a pro?
On the Tape Today...
$CMG earnings miss sets up a swing trade short that it might not recover from. The stock remains tainted since the e-coli food scare. (see chart)
$GS $176 breakout . Needs to remain above that price to confirm the new long. $184 target to sell.
$PYPL gap and pull-back sets up a long today on a lower open. A limit order to buy in the $41.50 area. Stop-loss $40.75, initial target to sell $44.
$HD break-down short-sale, minor resistance at $122. Gap fill target to cover @ $116.
$CMG 10-27-16 (Click to Enlarge)
Wall Street stocks set to fight for gains as Ford results, durable goods loom
U.S. stock futures pointed to a slightly lower start for Wall Street on Thursday, ahead of earnings from Ford Motor Co. and data such as durable goods orders.
Stocks have struggled this week, and are set to log losses for October. “A mixed earnings season in the U.S. makes a rally to higher ground difficult to justify,” said Lee Wild, head of equity strategy at Interactive Investor, in a note to clients.
“There just isn’t the consistency right now, and a U.S. election less than two weeks away lessens conviction among investors,” added Wild.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 10-27-16 | $TWTR Earnings
Twitter Jumps Late On Report Disney Revives Takeover Interest
Twitter (TWTR) shares rose late after a report that Walt Disney (DIS) is once again interested in buying the struggling social network. The website Betaville reported, citing sources, that Twitter and Disney are “thrashing out a deal” after agreeing on a price “thought to be in the high 20s per share” late last week.
Later, Benzinga, citing a source “familiar” with the matter, downplayed the “chatter” and questioned the source.
Continue reading on investors.com
Twitter Third-Quarter Earnings: Five Areas To Watch
Reports have swirled that Twitter TWTR could be on the cusp of announcing hundreds of layoffs this week.
Regardless, several analysts say Wall Street’s revenue and earnings estimates for the company’s third quarter results, coming out on Thursday, are obtainable-to-beatable. Earlier this week, the company announced it will report earnings on Thursday morning before markets open, instead of after markets close as previously planned.
The company attributed the change to requests from analysts to adjust its release time so as not to conflict with other Internet stocks reporting […]
Continue Reading on forbes.com
Tape Reading the SPY ETF
$SPY neutral close but remains well-offered.
Looking for a lower open today and follow through. If you the stock market averages trade below the open price, expect the $SPY to to test the $212 level.
If we trade above the open, stock specific scenarios remain in play.
Stocks in Play: $AMZN research on finviz.com
$AMZN Earnings NEWS: Amazon due for another record quarter: what to expect
Amazon.com Inc. is expected to report another solid financial period when it reports third-quarter earnings after the market closes Thursday, fueled by stronger e-commerce sales and increased appetite for its cloud-computing service, Amazon Web Services.
Total Amazon AMZN, +0.47% revenue is expected to rise by 29% year-over-year, with U.S. e-commerce sales increasing by 16% and AWS revenues rising by 52%, according to Cantor Fitzgerald, which recently raised its price target on Amazon shares to $1,000.
Continue Reading on marketwatch.com
What to Expect When Amazon.com (AMZN) Reports Q3 Results
NEW YORK (TheStreet) — Shares of Amazon.com (AMZN) were falling in mid-afternoon trading on Wednesday as the e-commerce giant prepares to report 2016 third-quarter earnings after Thursday’s market close.
Analysts surveyed by FactSet are modeling earnings of 78 cents per share on $32.69 billion in revenue. For the year-ago period, Amazon.com reported earnings of 17 cents per share on revenue of $25.36 billion.
JMP Securities reiterated its “market perform” rating and $950 price target on the stock […]
Watch Video and Read More on thestreet.com
Amazon showing profit potential to go along with growth
Amazon.com has become one of the world’s biggest brands on virtually no profit. Investors are imagining the possibilities now that the company is starting to show some earnings.
Amazon Web Services, the cloud-computing infrastructure that provides computing power and storage for some of the world’s biggest businesses, is infusing technology margins into the retailing giant. And Amazon’s third-party (3P) marketplace, fueled by outside sellers, presents handsome profit because the company doesn’t have to source and buy the inventory.
Read more on cnbc.com
Stocks to Trade 10-27-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: COF, DAL, MPC, ETN, TSO, X, MUR, BA, AKAM
Negative last 20 and 5 trading days | closed 2% lower from the open: exas, grub, luv, srpt, ua, chtr, rrc, esrx
Quarterly Order Flow:
Bullish Stocks to Trade: BA, MPC, PNC, PRU, GS, QCOM, WNR, NVDA, NFLX, MA, DISH, FB, EXPE, AAPL
Bearish Stocks to Trade: ua, rrc, acad, mdt, low, agn, teva, rh, mcd, hd, mbly, ions, hon, celg, kmx, twlo,
2x Normal Volume: LUV, UA, TWX, AKAM, BA, RRC, TMUS, EXAS, HES, NLSN, GRUB, RICE, IR
Inside days: glw, mrk, csx, bmy, myl, bhi, wmt, hbi, utx, lly, gt, mbly