Today’s Trading Lesson…
The current stock market volatility has some traders in heaven, and some traders feeling like a pinball machine.
What the heck is a trader to do?
Do you trade your stocks and ignore the market swings? Or do you focus on trading stocks in sync with the swings of the general market?
Today’s trading lesson provides some clarity so you create a winning game plan and have the conviction to trade it with discipline.
On the Tape Today...
$CVS 11-11-16 (Click to Enlarge)
$CVS short-sale appears ready to head lower again. I am looking for one more day to push higher. Although the price action traded into a doji candlestick, the volume was still higher than average. The stock needs one more day to absorb the short-covering rally. (see chart)
$UNH multi year breakout flirts with the $146 level again. I like the long, but after the $11 rally in two days, I am game planning for a pause near this level before initiating a new buy.
$MA up trend remains intact, BUT the stock is showing sighs of institutional distribution. Bullish order flow tells us to continue with our long bias but the sloppy, whippy price action and increased volume tell us to wait for new highs before we buy again. If you're long be disciplined with your stop-loss.
$EA $76 sell-stop triggers a short sale with support at $74 and $72. You cover to buy at each level depends n the bigger picture in the stock market. The stock showed relative weakness again yesterday. If the market turns down, the $72 target is a solid play.
Tony Robbins Key to Success with Lewis Howes
Nasdaq set to sell off again as tech exodus continues
U.S. tech stocks were lined up for another bruising Friday, with Nasdaq-100 futures slumping as investors moved out into sectors primed to benefit from President-elect Donald Trump’s policies.
At the same time, futures for the Dow Jones Industrial Average signaled a pullback from the index’s record rally on Thursday.
Trump’s presidency is seen as potentially providing a boost to financial and industrial stocks, as he has said he plans to increase fiscal spending to fund infrastructure projects. That would provide a lift to construction companies, while banks would benefit as bond yields are expected to rise.
A policy of lighter regulation is also seen as potentially helping financial firms.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-11-16 | Tech Gets Crushed
Stocks Rise Despite Big Sell-Off In Techs; Is Apple’s Uptrend Still Intact?
Stocks gained as a whole Thursday, as investors favored industrial and banking sectors as likely beneficiaries of four years of Donald Trump policies. But big-name computer, software and internet tech shares including Apple (AAPL) suffered another dose of heavy profit-taking.
The Dow Jones industrials paced the market’s upside, rising more than 1.1%. Banking, metal ores, machinery and shipping transport firms led the upside. Department store chains rebounded furiously.
Apple symbolized the sharp sell-off in tech land, falling nearly 3% to 107.67 in above-average volume. At one point, the stock reached as low as 105.83, down a little more than 4% below its Sept. 14 breakout price of 110.33.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY volume traded more than double the average again.
Irrational? Yes, in my opinion.
Great trading? Absolutely. But this volatility requires a firm commitment to your strategy. Stocks prices moving quickly in short bursts creates amazing opportunity– if you’re prepared. If you react to every green or red candle, you are getting beat up.
Continue to trade long, but the swing trade has lower probabilities for follow through. Could the stock market trade higher over rthe next few days? Yes, of course.
But never forget we trade for what happens most of the time, not what happens once in a while. Trail your stops on profitable trades and brutally assess reward potential before you accept new risk.
Take a look at this chart of $GS Goldman Sachs, what are the odds of follow through?
We also can’t ignore the beating tech stocks are talking right now.
Stocks in Play: $BABA research on finviz.com
$BABA | Alibaba NEWS: Singles’ Day: Alibaba poised to smash records at world’s largest online shopping event
A little over halfway through Singles’ Day on Friday, Chinese tech giant Alibaba was already closing in on the sales record it set last year at the world’s largest online shopping event.
After 12 hours and 29 minutes, retailers on Alibaba’s platforms had clocked $12 billion worth of gross merchandise volume (GMV) and Alibaba Group President Michael Evans was confident Singles’ Day was “in a good place.” In 2015, the 24-hour e-commerce sales event racked up $14.4 billion GMV in total.
“Back in 2013, $5.14 billion was our one-day GMV. Now we can achieve it in one hour,” Alibaba Group CEO Daniel Zhang told the company’s live blog, adding that in the first hour of Singles’ Day, orders were coming in 175,000 per second.
Read More on cnbc.com
Alibaba Smashes Sales Records On Singles’ Day Hype
Chinese e-commerce group Alibaba surpassed last year’s Singles Day sales record of $14.3 billion by 3:30 pm today , after the company pulled out all the stops to ensure a successful shopping bonanza amid a slowing Chinese economy.
Gross merchandise value settled through its payment app Alipay reached 91.2 billion yuan($13.3 billion) shortly after 3 pm, according to the company. Sales are expected to top $20 billion by day end, according to estimates by New York-based research firm Fung Global Retail & Technology.
Continue Reading on forbes.com
Stocks to Trade 11-11-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: NUE, ACN, LYB, UNH, UTX, ETN, UNP, COF, KMX, GS, PRU , PNC, CAR, IONS, PRGO, JWN, KSS
Negative last 20 and 5 trading days | closed 2% lower from the open: cag, momo, tsn, vtr, khc, pm, amzn, pep, adbe, ea, cci, amt, avgo, bidu, wynn, duk, aapl, hcn, cern, tsla, twlo
Quarterly Order Flow:
Bullish Stocks to Trade: PNC, PRU, GS, COF, NUE, CAT, BA, STT, VLO, BHI, CVX UAL, MAR, MA
Bearish Stocks to Trade: ntnx, tsn, vtr, cci, bidu, wynn, tsla, acia, twlo, fslr, teva, cvs, htz, mck
2x Normal Volume: FB, NVDA, NFLX, KSS, ABBV, PM, CAT, AMZN, CELG, GS, JWN, HCA, PEP, UNP, AMGN, ESRX, AMT, PRU, IONS, IBM, KHC, CERN, NEE, COF, ADBE, NUE, CCI, ETN, PNC, HCN, VTR, DUK, CAH, AET, CHTR, PRGO
Inside days: hlt, teva, celg, jnj, cop, abt, amgn, wmb, agn, cog, mdt, htz, dvn, syy, fslr, mcd, bhi, pe, de, rrc, apa, pten