Today’s Trading Lesson…
After sixteen years in the prop trading world I have witnessed (or made) every trading mistake imaginable.
Easily the biggest mistake comes in the form of goal setting. We set trading goals by ignoring the learning curve. We give ourselves three to six months to master trading.
Can we make money in that time period? Yes, absolutely. But the reality for most of us- we need to learn how to not lose money first.
Only when we learn to minimize mistakes, and reduce the frequency of trading bad ideas, can we start to earn a consistent trading income.
This video is from our coaching program. Take plenty of notes. If you have any questions, please feel free to drop them in the comments below.
Have a great weekend.
On the Tape Today...
$PRU 11-4-16 (Click to Enlarge)
$PRU breakout appears ready to explode, but- resistance is too close to justify accepting the risk. Print out this chart as a lesson in capital management. A good idea, but not a good trade until the stock price clears upcoming resistance. (see chart)
$TGT swing trade short sale triggers below $66. Minor support @ $64, momentum target to cover is $62.
$CSX solid relative strength. A $31.50 buy stop sets up a day trade long with a target of $32.80.
$RCL bullish momentum gap and relative strength this week worth putting in your watch list. $80 and $84 give us solid targets.
Dow futures frozen in place with all eyes on jobs report, election homestretch
U.S. stock futures pointed to a muted open Friday, as investors waited for a monthly jobs report and kept an eye on a presidential race that’s in the homestretch.
Analysts said the nonfarm-payrolls release — usually closely watched — might not make as much of a splash this time, because the U.S. election is getting so much attention.
Election Day is Tuesday, and Democratic candidate Hillary Clinton’s lead in a RealClearPolitics average of polls stood at 1.5 points early Friday. That’s up from 1.3 points late Thursday, but still down sharply on her mid-October advantage of about 7 points.
Fears that Republican nominee Donald Trump will win the election have taken a toll this week on Wall Street and stocks worldwide. He is viewed as more likely to inject uncertainty into domestic and global affairs, and big investors generally don’t like unpredictability.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-4-16 | $HUM Earnings
Stocks Hit Session Lows: Facebook Falls But Take-Two Interactive Takes Off
The major market indexes remained in the red heading into the last half hour of Thursday’s regular trading session, as earnings continued to dominate stock-price action.
First Solar (FSLR) plunged 17%, diving below its 50-day moving average in hefty trade.
Wynn Resorts (WYNN) sank nearly 10% in busy turnover, breaching its 200-day line for the first time since February. After the close Wednesday, the casino operator announced weaker-than-expected Q3 results.
Facebook (FB) gapped down and sank 6% in heavy trade as shares neared a test of their 200-day moving average line.
On the upside, Take-Two Interactive Software (TTWO) gapped up and soared 9% to a new high in triple its usual trade.
Continue reading on investors.com
Tape Reading the SPY ETF
$SPY price action traded back to it’s 50% retracement from the July bottom to the August high.
Actually traded slightly through it. I don’t see exhaustion type volume, but the probability diminishes for follow through on thew short side.
Does this mean you get long. No. It means you trade short but must have criteria in place that tells you when the short covering begins.
With the election next week, it’s very likely the recent selling represents unwinding of positions. The uncertainly makes direction a guess. Big money doesn’t guess, neither should you.
Continue to look for the short sale, it’s the correct side of the tape for now. But be prepared if the buyers step in. I teach my students to use the hourly chart for this analysis.
Stocks in Play: $HUM research on finviz.com
$HUM Earnings NEWS: Humana (HUM) Likely to Top Q3 Earnings; Stock to Gain?
We expect Humana Inc. (HUM – Free Report) to beat expectations when it reports third-quarter results on Nov 4, before the market opens.
What is Driving the Better-Than-Expected Earning
Humana’s Individual Medicare Advantage and Healthcare Services businesses likely have delivered solid performances in the to be reported quarter. The Group Medicare Advantage Business is also expected to come out with strong results.
Humana’s Medicare business is expected to drive earnings through growth in stand-alone PDP (Prescription Drug Plans) contracts. Management expects continuous increase in the […]
Read More at zacks.com
What to Expect When Humana (HUM) Reports Q3 Earnings
NEW YORK (TheStreet) — Shares of Humana (HUM) were higher in mid-afternoon trading on Wednesday ahead of the company’s 2016 third quarter results, due out before Friday’s market open.
Wall Street is projecting that earnings and revenue will rise year-over-year.
Analysts surveyed by FactSet are looking for earnings of $3.00 per share on revenue of $13.41 billion.
During the same period a year ago, the Louisville, KY-based health insurer earned $2.16 per share on revenue of $13.36 billion.
Continue Reading on thestreet.com
Stocks to Trade 11-4-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CAR, PRU
Negative last 20 and 5 trading days | closed 2% lower from the open: fslr, wynn, vrx, acia, clvs, apa, abc, cah, mck, agn, twlo, lulu, esrx, prgo, cvs, ntnx, amgn, hca, sm
Quarterly Order Flow:
Bullish Stocks to Trade: PRU, MET, EXPE, DE, PNC, DAL, NFLX, GS, MA, UAL, BA, VLO, AKAM,
Bearish Stocks to Trade: teva, acia, myl, acad, rh, abc, cah, mck, agn, twlo, prgo, cvs, ntnx, amgn, vtr, nlsn, ua, gpor, jci, tjx, cost, gild, lly, mcd, tsla, low, rrc, dva, lng, kmx,
2x Normal Volume: FB, TEVA, CTL, CF, FSLR, MYL, AIG, AGN, CVS, WYNN, APA, ABC, EA, CLR, CAR, CAH, PRGO, MCK, KHC
Inside days: csco, orcl, kr, nke, v, yum, jd, tck, gme, mdt, ctsh, hd, nflx, schw, nem, low, adm, cog, amzn, cat, rrc, etfc, bidu, de, ctrp, mbly