Today’s Trading Education…
Many day traders are confused about building an argument for a trade.
“How do I have conviction?”
The answer lies on the charts. Look to the left…
How much money did institutions commit to your idea? Do you see one day of obvious buying? Two days? A week? A month? A quarter?
How strong is the commitment?
If you see one day, that’s hardly conviction. If you graduate beyond a week, you have the start of something.
Never forget we are here for the ride. Make sure the big money is obvious, then trade with confidence.
Most money is lost when nothing is happening. Good traders lose confidence because of crappy ideas. Read more below in the section on reading the $SPY.
On the Tape Today...
$AAl $38 buy-stop, target to sell $39.75. Exit the trade if it trades below the open price. (see chart)
$NFLX news inspired momentum set to open near $104 resistance. A breakout shows $112 as the target.
$CRM continues to show selling order flow. $70 sell-stop with a target to cover on a swing trade of $64.
$QCOM strong one day momentum followed by two days of profit taking. Look to bid a push lower off the open. Wait for an inside candlestick or a hammer candlestick on the 15 minute chart.
$AAL 10-4-16 (Click to Enlarge)
U.S. stock futures mostly rise, joining a global advance
U.S. stock futures on Tuesday traded mostly higher, as analysts said worries about Deutsche Bank’s financial condition are receding. Investors also were keeping an eye out for Brexit news, as the pound dived to a 31-year low, helping U.K. stocks gain.
Deutsche Bank’s stock recently traded moderately higher in Frankfurt, where trading had been closed on Monday for a German holiday. Last week, the German lender’s stock had been dragged sharply lower on fears about the U.S. Justice Department seeking a $14 billion settlement over claims the bank sold toxic mortgage-backed securities.
The stock has recovered somewhat amid reports that the actual penalty won’t be as steep.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 10-4-16 | $GOOG News
Stocks Fall, But Tesla, NetEase Buck Decline; Gold Shares Cool Off
Stocks fell mildly Monday in the first trading session of the final quarter of the year. Gains by auto, airline, RV maker, gaming and movie-related stocks helped blunt the market’s decline.
Activision | $ATVI is among a large handful of stocks in the IBD 50 that are quietly forming bases or still within proper buy range following a breakout. This means that potential new breakouts could emerge, especially if the market uptrend firms up even more.
The decline failed to prevent Tesla Motors (TSLA) from making its biggest gain since June. The stock surged more than 4% in nearly double the average turnover to close at 213.70; now the large-cap auto play is just shy of rebounding back above the 50- and 200-day moving averages
Continue reading on investors.com
Google expected to unveil new phones at San Francisco event
Alphabet Inc’s Google is expected to unveil new smartphones at an event on Tuesday, the company’s latest effort to sell consumers on a Google-branded device and to challenge Apple Inc at the high end of the market.
Analysts predict the San Francisco product launch will also showcase other Google hardware initiatives, including a voice-controlled speaker system called Home to challenge Amazon.com Inc’s Echo device, and a virtual reality headset.
Tape Reading the SPY ETF
$SPY indecision candlestick offers no clues.
The current stock trading offers you a great opportunity to sharpen your stock picking skills. I dedicate an entire section to the $SPY because the market trend or momentum matters.
An obvious stock market gives us a reason to trade with conviction. But the opposite is true as well. When the market is tight, choppy and trading on light volume, you must be a professional.
To borrow a phrase from by baseball days, you must stay away from a bad pitch.
Good traders find stocks to trade in a tough tape like this, be a good trader. When the market finally gets a push, your position will be strong because you traded like a pro.
Stocks in Play: $GOOG research on finviz.com
$GOOG NEWS: Google looking into buying Twitter, says report
Google has hired the financial advisory firm Lazard to review possibly purchasing Twitter, Bloomberg reports.
Twitter’s shares, after sliding downhill from its peak of $69 in 2014, were up more than 4 percent Monday to $24.05. The list of possible Twitter suitors includes Salesforce.com, Disney, Microsoft and Viacom.
Google, whose parent company is Alphabet, may make the most sense given that it has long struggled to create a popular social media platform.
Google Said to Tap Lazard to Review Potential Bid for Twitter
Google is working with a financial adviser to consider a potential bid for Twitter Inc., as the social-media company continues to explore a sale, according to a person familiar with the arrangement.
In tapping Lazard Ltd., Google hasn’t indicated it will definitely make an offer for Twitter. But the move suggests that Google is evaluating the option, pitting the search giant against other potential bidders including Walt Disney Co. and Salesforce.com Inc.
Stocks to Trade 10-4-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: $NFLX, HLF, AAL, TWLO
Negative last 20 and 5 trading days | closed 2% lower from the open: nem, hog, cah, momo
Quarterly Order Flow:
Bullish Stocks to Trade: LVS, CLR, DISH, TWLO, SM, WDC, YELP, APA, YUM, APC, EA, DE, AMZN, ADBE, NVDA, UNP, PRU, STX, BABA, OKE, CAT REN, CLVS
Bearish Stocks to Trade: cah, cvs, crm ,aep, abc, kors, teva, nke, myl, bmy
2x Normal Volume: CTSH
Inside days: pg, aapl, jpm, c, ms, yhoo, nke, wmt, sbux, gps, low, vlo, symc, met, cvx, csx, bk, hd, cog, hlt, ntap, tjx, jnpr, yum, oxy, celg, hfc, skx, unp, ip, wba, tmus, adi, yelp, bidu, lmt