Today’s Trading Lesson…
Getting quite a few questions about order flow and the new coaching program…
Let’s first give you insight into what order flow IS NOT- it’s not looking at moving averages and saying the trend is up or down.
Order flow is accomplished through tape reading, and for the record, chart reading is not tape reading.
Order flow is seeing the institutions in action, behind the scenes. It’s putting the pieces together in a way that screams a clear bias.
What does this mean for you? When you understand order flow you never hesitate on entries, you know when to hold and build a position. You know when to trade for cash flow.
You know your trade management before the trade, because you can spot and read what the institutions are doing.
Tape reading is a level deeper than chart reading. Tape reading builds an argument for your trade. Tape reading, first-interprets the order flow, only then do you consider a trade.
No order flow, no trade.
You may feel there is too much to monitor. Too many indicators, and you would be right.
The only truth is what the institutions are doing. Noting else matters.
Learn this one thing, everything changes.
On the Tape Today...
$EA 11-21-16 (Click to Enlarge)
$EA relative weakness and continues to create lower-lows and lower-highs. $78 sell stop with a target to cover of $76. For a longer-term swing trade, looking to cover $71 (see chart)
$MET bullish momentum remains in play. Indecision candlesticks after a double gap higher. Looking at a $55 buy-stop with a target of $58 to sell. $58 has multiple resistance points, tighten a stop-loss in that area and be aggressive booking profits if the target is hit.
$JWN holding the $58 triple top with a bull flag. The next level for a potential sale shows $62. A solid reward with a new entry between $58-58.50. Looking to time an entry above $58 on the 15 minute charts for a 2 day trade to the target.
$AMGN inside day and a plethora of days closing below the open. Looking for a $144.75 sell-stop and a target of $140.25. If it trades higher out of the inside day, look for a cash flow trade only, I see neither bullish momentum or order flow.
How to Stay Focused | Brendon Burchard
U.S. stocks on track to knock out fresh record highs
U.S. stock futures on Tuesday pointed to another push into record territory, as analysts said a rally for oil prices was spreading good vibes across markets.
“Growing confidence that a deal will be struck in Vienna next week by OPEC members to cut production is serving to push oil prices higher, and this is driving a swathe of confidence through equity markets,” said Jamieson Blake, retail sales manager at ADS Securities London, in a note.
“On top of this, Donald Trump has confirmed that he will instruct the U.S. to withdraw from the Trans Pacific Partnership on his first day in office, a move that could stand to bolster the fortunes of U.S. businesses at least in the short to medium term, giving investors more to cheer,”
Blake added. Discount retailer Dollar Tree Inc. DLTR, +0.10%, bookseller Barnes & Noble Inc. BKS, -1.72% , Campbell Soup Co. CPB, +1.49% and Hormel Foods Corp. HRL, -1.80% are among the companies expected to post earnings before the open.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-21-16 | All-Time Highs
Nasdaq, S&P 500 Hit New Highs; Trade Desk Breaks Out
U.S. stock indexes sprinted ahead Monday, with the Nasdaq and the S&P 500 scoring new highs.
Oil prices leapt about 4%, and the NYSE energy sector index rose 2.3%.
Although the Nasdaq and the S&P 500 both pegged all-time highs, it wasn’t clear if that would stick, because the indexes are just barely at new highs.
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Initial public offering The Trade Desk (TTD) cleared a 29.57 buy point in a double-bottom base. Because the stock debuted Sept. 21 on the Nasdaq, it doesn’t yet have a 50-day moving average. But daily dollar volume is more than $20 million, an amount that suggests institutional participation.
Meanwhile, blue chip winners outpaced losers by a 3-1 ratio. The biggest gainer on the 30-stock Dow was IBM (IBM), which rose 1.6% in average volume.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY and NASDAQ peek through all-time highs…
Staring at my screen trying to form words of wisdom, imagining I am in my NYC office talking to our traders, especially giving some insight to the newbies.
“Imagine we had no news. No Trump. No OPEC. No earnings. What do you see? The stock market and many stocks are well-bid. Most continue to trade above key moving averages such as the 20 and 50 sma.
Purge from your thoughts two concepts that destroy earnings: It’s too high, too fast, and maybe it’s a short sale…”
This price action shows why following order flow remains the number one way to develop a trading strategy. Identifying order flow answers the only relevant question: “Who controls the stock, buyers or sellers?”
Stocks in Play: $DLTR research on finviz.com
Dollar Tree | $DLTR Earnings News: Dollar Tree Inc. (DLTR) Set to Announce Earnings on Tuesday
Dollar Tree Inc. (NASDAQ:DLTR) is scheduled to post its Q316 quarterly earnings results on Tuesday, November 22nd. Analysts expect Dollar Tree to post earnings of $0.78 per share and revenue of $5.08 billion for the quarter. Dollar Tree has set its Q3 guidance at $0.76-0.82 EPS.
Dollar Tree (NASDAQ:DLTR) last announced its quarterly earnings data on Thursday, August 25th. The company reported $0.72 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.73 by $0.01.
Read More DLTR Earnings == >>
What to Expect From Dollar Tree Earnings
Dollar Tree, Inc. (NASDAQ: DLTR) is scheduled to report its fiscal third-quarter financial results before the markets open on Tuesday. This company is finally benefitting on the top-line from its acquisition of Family Dollar, but last quarter this wasn’t enough.
Hopefully, this quarter investors will come around.
Continue Reading on 247wallst.com == >>
Stocks to Trade 11-21-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: MPC, HFC, WYNN, CXW, YUMC, DVA
Negative last 20 and 5 trading days | closed 2% lower from the open: TSN, SRPT, GPS
Quarterly Order Flow:
Bullish Stocks to Trade: URI, LYB, APA, BHI, LVS, VLO, CELG, AET, IBM, COF, LRCX, PSX, IONS, PRU, NUE, UAL, UNP, CVX, UNH, CAT, BA, JPM, WDC, GS, STT, KSS, RCL, NVDA, PNC,
Bearish Stocks to Trade: tsn, hcn, vtr, cci, agn, tsla, cvs, amgn, nee, fslr, pm, hca, nem, trip, aem, htz,
2x Normal Volume: TSN, MPC, ETP, MNST, DLTR
Inside days: csco, ge, msft, yhoo, baba, qcom, bsx, gild, met, kr, pm, ua, tjx, mat, hbi, rost, wfm, ccl, jwn, kss, yum, amgn, nwl, lrcx, skx, adbe