Today’s Trading Lesson…
Too many trading opportunities this week?
You’re not alone in that thought. Every coaching client had the same question, especially yesterday when it became clear the stock market was holding, the bid and buying was the right choice.
To handle too many signals triggering at the same time you need a progression from best, to the rest. You need criteria that says “this is my best trade, this is next, and so on.
Today’s video explains the concept in detail. Feel free to post your questions or comments.
On the Tape Today...
$PM 11-10-16 (Click to Enlarge)
$PM short-sale triggers a $94 sell-stop based on relative weakness to the general stock market and the consolidation break down. The cover to buy zone is $90.25.(see chart)
$MON day trade short-sale triggers on a lower open and a break of the first half hours low. Look for a capitulation to cover in the $96 area. If swing trading, $94.
$CVS bulls continue to hold 52 week highs. Continue a bullish bias until the $112 resistance area comes into play. The stock is a solid long to that price or until reward potential no longer justifies the risk. A move below $106 cancels the trade.
$TSLA continues to hover near the $190 support level. Something to note-the stock price failed to rally with the market this week. Sellers continue to hold the line. A giant descending wedge suggests a move lower with plenty of profit potential to go to $140. If you choose to trade this know your news. This stock is in the news a lot. If your short thesis fails to follow through, be smart and cover.
Dow set for record high as futures rally more than 100 points
Wall Street was set for another day of solid gains on Thursday, with the Dow average on track for a record high as investors continued to decipher what a Donald Trump election win means for the future of U.S. equities.
Investors and analysts are continuing to digest Trump’s victory in Tuesday’s presidential election. While some feared a win for the Republican candidate would spark severe market volatility, stock markets shook off their initial jitters and closed higher in Europe and the U.S. on Wednesday.
“Just as Trump’s victory is akin to a super-sized Brexit, the markets seem to have worked through the kind of fluctuations they saw following June’s referendum in record time, compressing the sharp fall to all-time high-nearing rebound into around 24 hours,” said Connor Campbell, financial analyst at Spreadex, in a note.
“Investors who were previously so against the former reality TV star, appear to have had an abrupt change of heart in the short term,” he added.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-10-16 | Stocks Rally Again
Stocks Rally As Market Digests Trump’s Surprise Win; Why Is Apple Down?
Stocks rallied to big gains heading into the lunch hour Wednesday, as the market continued to digest President-elect Donald Trump’s surprise victory.
Steel, medical and drug stocks led the upside in the stock market today, while hospitals, solar and automakers underperformed. West Texas intermediate crude prices rose 2% to $45.87 a barrel; gold futures were up 0.7% to $1,287 an ounce.
Apple (AAPL) was down 1.3%, but had pared its loss from nearly 3%. The stock is still below its 50-day moving average, which it breached Nov. 1.
The iPhone maker, as well as other tech companies including Microsoft (MSFT) and Cisco Systems (CSCO), could benefit from Donald Trump’s cash repatriation proposal, if Congress permits.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY produces third consecutive bullish day… Sounds great right? buy, buy, buy?!
Odds are you will be late to the party. Today gives you a chance to take profits from yesterday’s massive explosion in volume. All of the little people have climbed into the boat, and the boat is leaning to one side.
Nearly 250 million shares traded in the $SPY yesterday. When we combine this with three bullish closes from the open, today is a day to sell the first rally higher and say thank you.
Before you ask… “does that mean it’s an opportunity to short-sell?”
No. No it doesn’t. We are trading probabilities here. The market gave us a momentum gift this week for all of the dreary, trading range weeks the past 3 months. Take it and look for new longs.
A better trade long this morning? I am looking for the first decline to bid, not the first rally.
Could the stock market trade higher? Yes, of course. But the odds say no. The odds say ring the register.
What about holding profits on a swing trade long?
If the $SPY or your stock trades above the open price, continue to hold profits. If and when the last price begins to trade below the open, and especially below yesterday’s closing price, be smart and get out.
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Stocks in Play: $DIS research on finviz.com
$DIS (Disney) Earnings NEWS: Disney earnings: The film studio is putting together a record year as TV suffers
Walt Disney Co. continues to have a record year at the box office, while its TV networks are in a tumultuous ratings period. The media and entertainment company will open its books and report earnings for its fiscal fourth quarter after the market closes on Thursday.
Here’s what investors can expect:
Earnings: Disney DIS, +0.28% is expected to report earnings of $1.16 per share for the fourth quarter, according to analysts estimates tracked by FactSet. That would be more than a 28% […]
Continue Reading on marketwatch.com
Disney Stock Has a Lot to Prove on Thursday
The media giant reports fiscal fourth-quarter results on Thursday afternoon. There’s a lot riding on the report, with the stock trading well off last year’s all-time highs.
It’s been 15 months since shares of Walt Disney (NYSE:DIS) hit all-time highs.
The stock peaked hours before the media giant reported its fiscal third-quarter results, signaling weakness at ESPN and its other cable properties. Those concerns haven’t gone away as we head into fresh financials out of Disney later this week, and in fact they have only intensified.
Ratings tracker Nielsen recently reported that ESPN lost a whopping 621,000 homes last month, a figure that Disney went on to dispute. Disney’s own filings show that the leading sports network has shed millions of subscribers since peaking at 100 million in fiscal 2010, but shedding 621,000 accounts in a single month would be […]
Continue Reading on fool.com
Stocks to Trade 11-9-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: IONS, NUE, CELG, ACAD, VLO, GILD, GS, PRU, COF, ETN, PNC, AET, STT, TSO, IR, PSX, CHTR, LYB, DISH, BA, RCL, CAR, LVLT, LULU, HD, UTX, UAL, UPS, MCD, WDC, ADBE
Negative last 20 and 5 trading days | closed 2% lower from the open: thc, nee, cci, vtr, teva
Quarterly Order Flow:
Bullish Stocks to Trade: CAT, VLO, GS, PRU, PNC, STT, BA.UAL, MA, CVX, AKAM, BHI, NVDA (EARNINGS TODAY), NFLX
Bearish Stocks to Trade: cci, fslr, vtr, hcn, bidu, oxy, cost,, htz, twlo, dva, teva, prgo, cvs, amgn,
2x Normal Volume: TEVA, GILD, HCA, CELG, CBS, CAT, ABBV, HTZ, THC, MYL, JNJ, COF, AGN, TWX, AMGN, IONS, UNP, ESRX, NUE, AMZN, TSLA, UNH, FSLR, SET, GS, DLPH, LLY, NEE, CAH, UPS, PRU, AMT, ACN, ACAD, MCK, ETN, ABC, CCI, KHC, HCN, IR
Inside days: sabr, vsm,