Today’s Trading Lesson…
[PODCAT UPDATE] How Winning Traders Think Differently
Today’s education comes from our podcast Six-Figure Trading and we touch on something that is an urgent issue that doesn’t get enough attention.
The conversation starts something like this, “I know everything, but can’t make money…”
“I see the patterns, I understand the routing, I understand the setups, and I understand risk/reward. I’m looking at everything, I know everything exactly what I’m supposed to be looking at, and I’m just not converting it into money.
And then the emails that we get as a follow-up are basically insinuating, I got stopped out of my ideas today, and I’m probably the only person on Wall Street who got stopped out of my ideas.
And I want to get to the point where you have some sort of a framework or a thought process or a structure to help you get the results that you want, crossing that abyss to consistency.”
On the Tape Today...
$MA remains a target for a change of trend since we spotted distribution type action last week. A trade below $101 confirms the new bearish order flow with an initial target of $96.(see chart)
$IBM $163 breakout with volume is a solid idea to put in your watch list. Especially since the breakout occurred on a bearish day in the stock market. Several failed breakouts at this level in July and August make me want to wait for confirmation. Looking for a pause above $163 then a target to sell of $172 on a swing trade.
Market Wizards' Jack Schwager interview | Lessons from the worlds greatest traders
U.S. stocks on pace for muted open as analysts argue traders ‘got carried away’
U.S. stock futures on Tuesday pointed to little change at the open, as analysts argued the post-election rally has run its course.
In the past few weeks, repositioning for a Republican-controlled Washington sparked “big moves in the markets that are now starting to fade,” said Colin Cieszynski, chief market strategist at CMC Markets, in a note. “By last week, it was getting clear that traders had gotten carried away and become overly complacent, but the markets held up all the same.”
But now “reality has started to set back in, and traders have started to recognize that there are still a lot of short and long-term risks out there, and a lot of big events that could move the markets,” Cieszynski added.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-29-16 | Futures Set for Flat Open
Stocks Stay Red As Gold, Oil Prices Rise; Amazon, Building Stocks Weigh
The major averages remained in the red heading into the last hour of Monday’s regular trading session, as building-related stocks took a hit.
Department stores, biotech and building-related plays led the downside in the stock market today, while gold miners, utilities and internet stocks outperformed. Gold prices rose 1% to $1,191.70 an ounce. West Texas intermediate oil futures gained more than 2% to $47.21 a barrel ahead of Wednesday’s OPEC meeting.
Eagle Materials (EXP), down 2%, was among the biggest IBD 50 losers. The wallboard and cement products maker is still extended from an 87.67 buy point cleared Nov. 9.
Building-related stocks had rallied on the heels of President-elect Donald Trump’s surprise win. The cement and concrete group slumped 4% Monday, with Vulcan Materials (VMC), U.S. Concrete (USCR) and Martin Marietta Materials (MLM) shedding more than 3% each.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY reversal and close on the lows would lead us to assume the profit taking started yesterday.
Not so fast.
Volume traded 25 million shares below average. The bulls still hold the position of strength. So what does this mean for today’s game plan?
The obvious bias remains bullish, but we need to respect a profit taking scenario for a day or two. This scenario can be tough for traders. Stocks trading lower today–but trading higher from an order flow perspective.
Two game plans emerge:
- Trade bullish stocks long but have strict criteria to define a bullish tape intra-day.
- Trade bearish stocks short a little more aggressive than you could during the recent bullish momentum.
It’s easy to lose money bidding for stock during a pull-back, we need criteria such as change from the open, change from the close, change from yesterday’s high, to help stay out of trouble.
Stocks in Play: $TIF research on finviz.com
Tiffany (TIF) Earnings News: Tiffany’s Earnings Report Should Provide Clarity On Potential For Turnaround
The New York-based jewelry and specialty retailer will deliver its earnings release prior to 7am eastern time, with a conference call to follow at 8:30am.
Wall Street is looking for EPS of $0.67 on revenues of of $922.5 million, both of which would be down significantly from the same period last year. In fact, that estimate of just $0.67 would mark the lowest quarterly EPS number from TIF since the third quarter of 2012.
As for guidance, analysts are expecting full-year 2017 EPS of $3.68 and $4 billion in revenue. Recently, Tiffany forecast 2017 EPS to range from $3.60 to $3.67, so it’ll be interesting to see if the company updates its outlook this time around.
Continue Reading TIF Earnings == >>
Tiffany (TIF) to Report Q3: Will its Earnings Lack Luster?
Tiffany & Co. (TIF – Free Report) is scheduled to release third-quarter fiscal 2016 results on Nov 29. The question in investors’ minds now is whether this jewelry retailer will be able to deliver a positive earnings surprise in the quarter to be reported.
Last quarter, the company had posted a positive earnings surprise of 18.3%. In the trailing four quarters, Tiffany outperformed the Zacks Consensus Estimate by an average of 2.8%. Let’s see how things are shaping up for this announcement.
Zacks Model Shows Unlikely Earnings Beat == >> Read More
Stocks to Trade 11-29-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: WB, WDC
Negative last 20 and 5 trading days | closed 2% lower from the open: sm, acia, thc, clr, pe, etp, sxl, nfx, twlo, urbn, nbl, srpt, apa
Quarterly Order Flow:
Bullish Stocks to Trade: WDC, WBA, IBM, DLTR, ACN, NVDA, ADI, BA, CVX, UNH, GS, HD, LRCX, UNP, AET, CAT, BHI, TGT, UAL LYB, PRU, KSS, NUE, COF, RCL, STT, PNC, DE, ADNT, X,
Bearish Stocks to Trade: twlo, lly, tsn, htz, mct, trip, hca, gild, agn, cci, cvs, hcn, fslr, aem, nem
2x Normal Volume: CTSH, LLY, SXL, URBN
Inside days: csco, jd, nvda, de, teva, mat, acad