Today’s trade management.
- When do I add to positions?
- When do I trade for cash flow?
“I exit my good trades too soon, I hold my winners too long. How do I know when to exit at the correct time?”
The truth is, profitable traders set expectations before the trade. Inexperienced traders take a “wait-and-see” attitude. Great traders assess expectations for follow through before the market opens, never mind before the trade.
Today’s video [2:59] walks you through what I call a “progression” of best ideas. Once you understand this simple process, your exits will never be random again.
On the Tape Today...
$LMT $237 sell-stop, add below $235, target to cover $227.75 (see chart)
$PM $97 sell-stop, for a new swing trade short sale, target to cover is $90.50
$DE $85.50 buy-stop long, two day swing trade with a target of $88 to sell.
$M $37.25 buy-stop, $40.75 target to sell. Swing trade or day trade to the target.
$LMT 10-3-16 (Click to Enlarge)
U.S. stock futures barely higher as investors wait for fresh news on Deutsche Bank
Wall Street was headed for a quiet start to the fourth quarter on Monday, with stock futures barely higher, as investors continued to carefully watch the crisis surrounding Deutsche Bank AG.
Economic data due later could help move the needle, while gains for oil prices weren’t doing much to lift sentiment.
“With one more week to the earning season, expect any news related to Deutsche Bank to become a key catalyst to risk,” said Hussein Sayed, FXTM chief market strategist, in a note to clients.
Jobs data this week: Monday will kick off a busy week for economic reports that ends with a reading on nonfarm payrolls.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 10-3-16 | $TSLA Sales Increase
Stocks Cap Week With Big Gains As Banks Bounce Back, Retailers Rally
Stocks staged a strong rebound Friday to cap a tumultuous week with big gains, paving the way for a 3% or better advance for the major market indexes.
Deutsche Bank (DB) vaulted 14% in massive trade, more than making up for Thursday’s loss, on reports of a possible settlement with the Justice Department. The stock is still below its 50-day moving average and 57% off its 52-week high.
On the Dow, big banks Goldman Sachs (GS) and JPMorgan Chase (JPM) gained 1.5% and 1.4%, respectively, after also taking a hit Thursday. All but one blue chip, Verizon Communications (VZ), scored gains.
The wireless carrier edged down 0.3% in below-average volume.
Among retailers, Wal-Mart (WMT) climbed 2% in brisk trade as shares build a flat base. KeyBanc late Thursday began covering the retail giant with an overweight rating and 90 price target.
Costco Wholesale (COST) gapped up and rose 3% in fast turnover after reporting better-than-expected earnings and a 3% rise in same-store sales.
Continue reading on investors.com
Tesla’s Third-Quarter Sales More Than Double From a Year Ago
Company posts best sales quarter ever while looking to raise more cash to begin producing Model 3.
Tesla Motors Inc. posted its best sales quarter ever as the electric-vehicle maker prepares to raise the added cash it needs to begin production of its Model 3 sedan, which is aimed at the mass market.
Tape Reading the SPY ETF
$SPY showed all the signs of a bullish trap Friday morning. Solid volume and a bearish close on Thursday set up a lower open. We received the opposite.
Previous day close on the lows, Friday opens higher and trades through Thursday’s highs. The weak close cancelled out the entire day.
Conviction is the biggest challenge for traders the previous two weeks. Friday’s close didn’t help.
Although the $SPY closed “well-bid” (higher highs and lows) the failed breakout has the potential to trap buyers who took the bait.
This could result in a fast bearish momentum type move below the $212 level. Current price action challenges us to remain patient. We need to trade to pay the bills but if we trade too aggressively in a choppy tape we can get slaughtered without price movement.
It’s hard, but be patient. The $SPY needs to break $212 or $220 to offer conviction.
Stocks in Play: $TSLA research on finviz.com
$TSLA NEWS: Tesla reports its best-ever quarterly vehicle sales
Q4 sales and production should be at or slightly better than the third quarter’s.
Tesla Motors Inc. posted its best sales quarter ever ahead of efforts to raise additional cash that it will need to begin production of the Model 3 sedan.
Chief Executive Office Elon Musk wanted a strong third quarter to help build his case for why TSLA, +2.70% should raise more money for the Model 3’s production line and for the Gigafactory.
Global deliveries of Tesla vehicles more than doubled from the same quarter a year earlier to 24,500, the company said in a statement on Sunday.
The Palo Alto, California auto maker said it delivered 15,800 Model S sedans and 8,700 Model X sport-utility vehicles during the July through September period. An additional 5,500 vehicles were in transit to customers and will be counted in fourth quarter results, the company said.
Wall Street set to edge higher after Tesla earnings, Janus merger; data eyed
U.S. stock index futures indicated a slightly higher open Monday as investors geared up for more economic data and digested earnings results from Tesla over the weekend.
Tesla set new quarterly records for vehicle production and deliveries in the third quarter, according to data released on Sunday. Shares were up over 2 percent in pre-market trading at around 5 a.m. ET.
Stocks to Trade 10-3-16 | Monday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: REN, NXPI, RH, SWKS, RRC, IONS, UAL
Negative last 20 and 5 trading days | closed 2% lower from the open: ctsh, endp, vtr, momo, etp, vrx
Quarterly Order Flow:
Bullish Stocks to Trade: REN, CLVS, PRU, STX, CLR, PG, NVDA, UNP, LRCX>95, QCOM, CAT, EA, TAP, APC, MA, AMZN, AAPL, ADBE, WDC, BABA, APA, TRGP, TWLO
Bearish Stocks to Trade: ctsah, myl, cvs, teva, abc, crm, len, nke, vfc,
2x Normal Volume: PG, CTSH, QCOM, NXPI, TEVA, VIAB, COST, RICE, WYNN, LNG, ACN
Inside days: msft, pfe, jpm, mrk, orcl, nke, bly ebay, symc, yhoo, cop, vlo, jnj, myl, pep, dow, mo, jd, mgm, fitb, crm, nov, apa, utx, mdt, celg, azn, bhi, wdc, axp, ma, stx, mur, mon, ibm, gis, ba, dd, psx