Today’s Trading Lesson…
This trading advice can literally…overnight… turn your trading from positive to negative, from frustrated to calm…
During a recent coaching call, I heard the line that changes everything.
== >>“I finally get it.
You have been saying this for months and I finally get it. The more I recognize and stay away from poor trading ideas, the steadier my P&L grows. Doing absolutely nothing else, learning to spot perfect trades, and only trade perfect trades, made me a winner.”
I stopped taking trades because I felt like I needed to trade, or I wanted to trade, or any other reason we all convince ourselves of. My biggest problem now is holding good trades longer. << ==
Of course I am ecstatic but I want to drive the point home so you can apply the lesson immediately.
Always strive to lose money on your best ideas. You are definitely going to lose money. We all will. Losing trades are included with “probabilities.” But how you lose is what matters.
On the Tape Today...
$SBUX 11-17-16 (Click to Enlarge)
$SBUX showing accumulation volume. Not quite an order flow long yet but certainly worth placing into your tracking journal. The stock appears ready to break the long-term down trend. (see chart)
$BHI inside day and "hammer" candlestick sets up a solid swing trade long into the $66 area. Looking for a clean volume breakout with volume above $62 to trigger an entry signal.
$CVX inside day and pausing above July resistance says perfect trade. But not so fast. Volume during the recent consolidation shows high readings. Exactly what we do not want to see during a pause. Continue to look long but do not ignore the heavy pause. It's a sign of institutional selling. If the stock is trading below the open, let it go.
$V [momentum trade] sets up a short sale after recent selling pressure. I emphasized momentum to show the difference between order flow and momentum. This trade is pure "recent price action." Looking for a higher open to short-sell and a target to cover @ $78.
How Millionaires Schedule Their Day
Wall Street stocks look to Yellen, inflation data for inspiration
Wal-Mart, Best Buy, Staples to report before the open
U.S. stock futures traded slightly higher Thursday, as investors waited to see if the post-election rally would resume, with comments from Federal Reserve Chairwoman Janet Yellen and an inflation update ahead.
Retailers will be in the spotlight, with Wal-Mart Stores Inc. due to report results ahead of the open.
Yellen speaks: Investors will be alert for confirmation of a December interest rate hike when the Fed chief testifies to the Joint Economic Committee of Congress, scheduled to begin at 10 a.m. Eastern Time. Yellen’s Capitol Hill appearance comes almost a month ahead of the central bank’s Dec. 13-14 meeting.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-17-16 | Walmart Earnings
Stock Indexes Mixed; Netflix Works On Base
U.S. stock indexes were mixed Wednesday, as volume fell for a second day in a row. While some stocks in the bank and building sectors are already extended, stocks in other sectors are either in the 5% buy zone or are shaping bases that could lead to breakouts.
Internet TV network Netflix (NFLX) has fallen about 8% since the election results became known. The action, though, could be constructive. Netflix is working on a cup-with-handle base. The handle is a bit deeper (14%) than desirable (8% to 12%).
The potential buy point is 129.39. The base is first stage Blue chips were mostly down Wednesday. The day’s biggest loser in the Dow was Goldman Sachs (GS), off 2%. The biggest gainer was Apple (AAPL), up nearly 3%.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY inside day on light volume implies continuation.
So far, amazingly, we do not see exhaustion/capitulation type price action/volume. One would assume (nod to Felix Unger) the stock market needs a rest, but was that yesterday?
The nine days preceding the election and the subsequent trading since the election provided amazing opportunity. Both from the election upset and earnings season.
If you’re finding the volatility is giving you fits, you need stronger criteria and the correct mindset to accept risk. This means you need rules and you need to stick to them.
You biggest complaint the last 2 weeks should be, “I let my winners go too soon…?
If you need some help, learn more about our coaching program that begins November 28th — >>
Stocks in Play: $WMTresearch on finviz.com
Walmart $WMT Earnings News: Wal-Mart earnings: Investments could put pressure on results
Wal-Mart Stores Inc. is expected to report third-quarter earnings on Thursday before the market opens.
Wal-Mart’s WMT, -0.06% investments in things like food, labor and e-commerce are viewed as positive overall, but analysts are prepared for an impact on margins and other areas of the business. Food deflation could also hurt quarterly numbers.
Analysts have an average hold rating on Wal-Mart stock and a price target of $74.46. That’s about 4.3% higher than Tuesday’s close.
Read More on marketwatch.com
Wal-Mart’s Q3 2016 Earnings Preview: What To Expect?
Wal-Mart ( WMT ) is scheduled to announce its third quarter results on Thursday, November 17.
The company posted solid results in the second quarter, with both its revenue and earnings per share beating analyst estimates despite currency fluctuations and increasing wage expenses. The retailing giant’s net revenues increased 0.5% year over year (y-o-y) to $120.9 billion , while it posted earnings of $1.07 per share, which was above the top end of the company’s guidance
Continue Reading on NASDAQ.COM
What Warren Buffett May Have Forgotten About Walmart
Warren Buffett has lightened the load with respect to his holdings in Walmart (WMT) , per disclosures this week.
And so has the market more broadly. Shares of the world’s largest retailer, which reports earnings on Thursday morning, have lost about 2.5% over the past three months, after enjoying a relatively unabated path higher for most of the year.
The selloff has come despite evidence of a continued improvement in the U.S. labor market, favorable retail sales trends and early payoffs by Walmart to regain its leadership standing in retail. If Amazon AMZN didn’t fear Walmart coming into 2016, it should as we near the conclusion of the year.
Continue Reading on realmoney.thestreet.com
Stocks to Trade 11-17-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: NVDA, AA, TJX, RH, HFC, CSTSH, WNR, SBUX, YUMC, X
Negative last 20 and 5 trading days | closed 2% lower from the open: nbl, mbly
Quarterly Order Flow:
Bullish Stocks to Trade: NVDA, KSS, MCHP, AKAM, CVX, BHI, LRCX, JWN, MAR, AET, UNH, RCL, NUE, UAL, IR, LMT, CELG, HOG, PRU, BA, CAT, PNC, STT, URI, GS, COF, JPM, IONS
Bearish Stocks to Trade: htz, prgo, duk, fslr, mck, nee, cvs. agn, vtr, wynn, pep, tsla, aem, hcn, pm, trip, bidu,
2x Normal Volume: NVDA, TGT, TEVA, LOW, BBY, MBLY, MENT, EXAS, NVS, SBH
Inside days: teva, hd, cern, dhr, ms, fitb, c, azn, bx, pnc, nue, aet, bk, ual, cvs, lvs, adbe, hal, met, cl, nem, pru, fast, axp, bhi, jd, gild, dfs, x, aal, myl, dal, bmy, wdc, cf, cat,