Today’s Trading Lesson…
Sometimes the most powerful trading signals happen to be the simplest ones.
The inside candlestick falls into this category.
Many of the top traders I know use this trigger as their only entry signal. Yes, that’s right. Experienced traders are not using every indicator available, we keep it simple, so we can make definitive, confident decisions.
This mindset eliminates hesitation. If you see it, place the trade. No super computer or algorithm needed.
Enjoy the video and feel free to drop a comment with your questions. Scroll down to the bottom of this blog post to get a list of today’s inside candlestick trade ideas.
On the Tape Today...
$IBM inside day and solid selling order flow since a double top in August. Swing trade short with minor $150 support. Target to cover is $144. (see chart)
$AIG bull flag holds the October trend line. Look to bid yesterday's low with a $62 target to sell.
$BHI double bottom tails holds the gap support from 10-24. $55 buy stop for a swing trade long with a target to sell of $59.25. Exit below $54
$KR head and shoulders bottom, breaks down trend. Swing trade long. 50% retracement target to sell @ $34.50. Must be above $32 before you look for an entry.
$IBM 11-3-16 (Click to Enlarge)
Dow futures in holding pattern, but Facebook slumps
The main U.S. stock benchmarks were on track to open little changed on Thursday, but Facebook Inc. was dropping in premarket action as shareholders booed its latest revenue forecast.
Investors are waiting for fresh figures due this morning for jobless claims, productivity, the services sector and factory orders.
“Markets remain very much focused on the outcome of next week’s U.S. presidential election,” said Tony Cross, market analyst for TopTradr, in a note.
“Donald Trump’s turnaround in the opinion polls is being taken seriously by financial markets, with short USD positions building and a breakdown in U.S. equity markets being observed, too.”
Individual movers: Fitness trackers seller Fitbit Inc. FIT, -29.74% and games maker Zynga Inc. ZNGA, -2.14% were both on track for down days, after falling late Wednesday in the wake of their quarterly reports. Fitbit’s results and outlook came in below Wall Street’s expectations, and Zynga also missed on both counts.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-3-16 | $SBUX Earnings
Stocks Extend Losing Streak; Did Investors ‘Like’ Facebook’s Q3 Earnings?
Selling picked up in the stock market Wednesday after the Fed left rates unchanged as expected and left the door open for a possible rate hike in December. Consumer lenders, hospitals and oil stocks led the decline in the stock market today, as West Texas intermediate crude futures fell nearly 3% to $45.48 a barrel.
After the close, Facebook (FB) climbed slightly after reporting Q3 adjusted earnings of $1.09 a share (up 91%) and a 55% rise in revenue to $7.01 billion, both above views for 97 cents on $6.92 billion. The social network’s shares fell nearly 2% in the regular session, closing below its 50-day moving average for the first time since early July.
Continue reading on investors.com
Tape Reading the SPY ETF
$SPY volume breached the 100 million share mark again, and closed below the open price for the fifth consecutive day.
The stock market selling pressure begins to show it’s teeth. Now what do we do?
If you’re a pro, you start to make “if-then” scenarios. If the $SPY begins to trade near $212 and holds resistance, which stocks showed relative weakness? These stocks would be the first ones to short sell if the resistance holds again.
If the $SPY trades back into the trading, (on light volume), we switch back to cash flow mode. Which stocks show obvious order flow (long or short) despite a tight market?
If the $SPY bounce hard on solid volume, which stocks showed solid buying order flow and have room to go? (profit potential)
It’s time to put your big boy (girl) pants on… start trading your plan, not the market.
Stocks in Play: $SBUX research on finviz.com
$SBUX Earnings NEWS: Starbucks Earnings: What to expect
Starbucks Corp. is scheduled to announce fiscal fourth-quarter results after the market closes on Thursday.
Here’s what you need to know: U.S. SALES: The coffee company’s U.S. same-store sales growth peaked about this time last year and investors are wondering how much more growth Starbucks will be able to post on top of that.
The company posted a surprising same-store sales miss in its fiscal third quarter — its third consecutive miss. The company said the latest miss was an anomaly caused in part by […]
Continue Reading on marketwatch.com
Starbucks earnings preview: Will same-store sales disappoint again?
Starbucks Corp. CEO Howard Schultz called it an “anomaly” when U.S. same-store sales last quarter came in lower than every quarter going back six years. Investors will be watching Thursday to see if he was right when the Seattle coffee company reports financial results for its fourth quarter and full fiscal year.
Domestic same-store sales were growing at or above 5 percent for the previous 25 consecutive quarters until the coffee chain reported 4 percent growth for the quarter ended June 26.
Another quarter below 5 percent could be a sign of a broader slowdown for Starbucks in the U.S. Schultz blamed last quarter’s low growth on everything from political turmoil and increasing global uncertainty to bad timing for a summer drinks promotion that was delayed because of changes in its loyalty program.
Read More on bizjournals.com
Stocks to Trade 11-3-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: NBL, ACN
Negative last 20 and 5 trading days | closed 2% lower from the open: vrx, ren, srpt, sm, agn, twlo, clr, tso, wdc, bidu, baba, amzn, fb, acia, gild, fb
Quarterly Order Flow:
Bullish Stocks to Trade: KLAC, VMW, UAL, DAL, DE, NVDA, NFLX, GS, PNC, MA, CVX, AKAM, BA,
Bearish Stocks to Trade: agn, twlo, acad, vtr, bidu, prgo, gild, rrc, gpor, tsla, myl, hon, acia, cost, mcd, kmx, nke, jci, dva, hd, cvs, abbv, ua, low, mck
2x Normal Volume: VRX, FB, BAB A, AGN, DVN, TWX, LVLT, YELP, EA, ESRX, CCI, ABC, NEE, ACN, CAH, MCK, TRGP
Inside days: vrx, aapl, msft, intc, ko, mrk, dal, ebay, bmy, hlt, wmt, nvda, aig, jci, luv, dis, jnj, abt, aal, m, apa, hd, nwl, lly, ual, fslr, pm, unh, dd, jwn, nue, swks, dltr