Today’s Trading Lesson…
Trading and computers are best buddies these days, in some ways good, some ways not so good.
The ease of accessing any trading indicator imaginable is exciting but it removes you from the most important part of trading- price action.
Each day I create a game plan using two methods, a weekly chart with no indicators and a daily with multiple moving averages. The moving averages help but it’s easy to get lazy.
Today’s trading lesson demonstrates how to properly draw trend lines and spot order flow.
On the Tape Today...
$HD broke support and holds a bear flag below $124. Short sake triggers below $122 with targets of $118 and $111. (see chart)
$COST swing trade short sale below $148. $142 target to cover.
$GS solid order flow for four weeks and inside day set up a breakout long with an initial target to sell @ $184.
$VLO momentum bull flag pattern. Look for intra day entry with a $61.75 target to sell.
$HD 11-1-16 (Click to Enlarge)
U.S. stocks set for gains after upbeat Chinese factory data
U.S. manufacturing PMI and ISM data are also in focus
U.S. stocks were poised to rebound Tuesday, with futures pointing higher after strong Chinese manufacturing data instilled more confidence in global growth and sent global stock markets higher.
Investors were waiting for the latest on U.S. manufacturing, with purchasing managers’ index and ISM data due early in the day.
Stock markets were also buoyed by upbeat data from China, where the official manufacturing PMI for October rose to a two-year high of 51.2, from September’s 50.4.
“Chinese PMI data for October surprised strongly on the upside, adding to the picture of a global recovery and putting more fuel on the reflation theme,” analysts at Danske Bank said in a note.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 11-1-16 | $EA Earnings
Oil Skids, But Stocks Quiet Ahead Of Fed; Exxon, Nike Weigh On The Dow
Stocks were mostly quiet Monday ahead of the Fed’s two-day monetary policy meeting, which starts Tuesday.
Mergers took center stage, while Nike (NKE) weighed on the Dow. Oil, generic-drug and shoe/apparel makers underperformed in the stock market today, as prices for West Texas intermediate crude slumped 4% to below $47 a barrel.
Auto parts makers, gold miners and utilities were among the biggest gainers. Nike was the biggest Dow loser; it gapped down and fell nearly 4% in fast turnover to a 14-month low. Shares are well below their 50-day moving average and 200-day line, and 26% off a November high.
Bank of America lowered its rating on the athletic-shoe giant to underperform from neutral, amid stiff competition from Under Armour (UA) and Adidas, according to Seeking Alpha.
Also among blue chips, Exxon Mobil (XOM) fell 2% in big volume. Shares are still working on a flat base with a potential buy point at 95.65.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY inside day near $212 support implies a breakdown.
Not so fast, not the time to be an early bird.
Smart trading says wait for confirmation. Wait for what we call an “energy candlestick.” Traders setting buy and sell stops too close to these obvious levels get slaughtered.
Expect the support to hold and know your sectors. The best trading opportunities in this tape continue to center around earnings and related stocks in that industry.
These trades are momentum only unless they have order flow and room to go. Trade for cash flow. Swing trades giving traders a migraine right now.
Stocks in Play: $EA research on finviz.com
$EA Earnings NEWS: Electronic Arts (EA) Q2 Earnings: What to Expect this Time?
Electronic Arts Inc. (EA – Free Report) is set to report second-quarter fiscal 2017 results on Nov 1. In the previous quarter, the company reported a positive earnings surprise of 42.86%.
On an average, EA has delivered a positive earnings surprise of 32.22% in the last four quarters. Let’s see how things are shaping up for this quarter.
Factors at Play We believe that EA’s popular franchises, and strength in digital business, especially mobile, are key […]
Continue Reading on zacks.com
Electronic Arts Shares Dip After Downgrade (EA)
[10-28-16] Shares of game maker Electronic Arts Inc. (EA) fell more than 3% in trading Friday after Cowen lowered its rating on the stock, arguing the release of Titanfall 2 will miss expectations in terms of sales.
According to media reports, Cowen analyst Doug Creutz said he is downgrading shares of Electronic Arts “because we believe that ‘Titanfall 2’ sales are going to be substantially disappointing, enough to offset upside from ‘Battlefield 1.’
We expect a correction in shares between now and early next year as we believe the stock is priced for upside to current Street consensus.” Read More on investopedia.com
Is it Time to Buy Electronic Arts?
Video game publisher, Electronic Arts, is prepared to announce its fiscal second quarter results this afternoon. EA started its fiscal 2017 on quite a sour note, delivering sharp declines on both the top and bottom line.
Expectations for the upcoming quarter are equally as muted due to weak seasonality trends. Shares are trading lower the past month leading into its report […]
Read More on estimize.com
Stocks to Trade 11-1-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: LVLT, RCL, TSO
Negative last 20 and 5 trading days | closed 2% lower from the open: ren, clvs, hes, prgo, srpt, twlo, dvn, apc, clr, amgn, acia, agn, trgp, tsla
Quarterly Order Flow:
Bullish Stocks to Trade: DISH, UAL, HOG, AAL, DE, PSX>82, VMW, VLO, NVDA, GS, PNC, QCOM, PRU, MA, WNR, AXP, FB, BA, AKAM, COF, NFLX, EXPE,
Bearish Stocks to Trade: jci, hes, prgo, twlo, acia, agn, ntnx, hd, cost, lly, low, gild, mbly, vfc, bmy, hon, kmx, mcd, ua, cvs, teva, acad, dva
2x Normal Volume: CTL, LVLT, TEVA, BHI, JCI, ABBV, AMGN, MCK, CAH, DVA, RCL, HOG, GNC, ABC
Inside days: msft, wfc, intc, fb, c, abbv, ko, bsx, qcom, v, cmcsa, dal, ms, gild, cog, cvs, jnpr, atvi, wmt, nvda, esrx, met, schw, azn, unh, unp, mgm, ibm, pm, axp, stx, pnc, bby, tjx, hon, gs, chtr