Today’s Trading Lesson…
Great traders have share size adjustments clearly outlined.
How do you determine share size per trade? Is it documented in your trading plan? Day trade and risk go together, it’s tough to say one without the other.
The problem for most new day traders is they never learn to adjust risk with volatility. A $500 risk is not the same in every stock or from day-to-day.
Stocks have different volatility, known as average true range. This is the amount price action fluctuates from high to low (on average). New traders should assess risk tolerance, capital and decision making ability and coordinate these resources with volatility.Read the Complete Lesson >>
On the Tape Today...
$CAT 11-7-16 (Click to Enlarge)
$CAT selling order flow takes a pause inside a trading range. Looking for a short sale using an $84 limit order with a target to cover @ $80.25 (see chart)
$BHI well-bid with solid momentum and room to go. $58.50 buy-stop with a target to sell @ $61.75.
$TSLA swing trade short is tempting but no trigger yet. One could make a case for bidding the $190 support but getting long support in a trading range versus bidding a strong stock is not the same trade. I agree. If you want to be long, there are better ideas. Keep cycling back to the short if we see an energy candlestick close on the lows.
$GS bull flag and melted candlestick sets up a long today with a $179 target to sell. I am looking for a breakout trigger outside of the opening 15 minute window. If the stock trades a larger than normal opening range, I will not trade the breakout but the first pull-back on the 5 minute chart looking for an inside candle or 'Hammer" candle entry.
Nasdaq futures surge 1.7% after FBI says no charges for Clinton
U.S. stock futures soared early Monday after the Federal Bureau of Investigation said its fresh review of Hillary Clinton’s emails won’t lead to charges, triggering a relief rally as political worries eased.
FBI Director James Comey said Sunday he had informed Congress there were no new findings in the additional emails found on the computer of former Rep. Anthony Weiner, whose estranged wife is Clinton aide Huma Abedin.
News that the FBI had discovered fresh emails just over a week ago jolted the presidential election race, taking a toll on the Democratic nominee Clinton’s lead in polls over rival Donald Trump.
Financial markets in general view a Clinton win as the better outcome in Tuesday’s election, as it presents fewer unknowns and possibly more stability for markets than victory for her Republican rival Donald Trump.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-7-16 | Stock Futures Bounce
Stock Futures Jump After FBI Boosts Clinton’s Chances
S&P 500 futures jumped Sunday after FBI Director James Comey said in a letter to Congress that the agency continues to believe that Hillary Clinton should not be prosecuted for her handling of emails.
And Facebook (FB) tumbled 8% last week, crashing through multiple buy points despite reporting 91% earnings per share growth
Wearables maker Fitbit (FIT) collapsed 35% to an all-time low. Fitbit sees weak sales in the fourth quarter, during the all-important holiday season.
Apple (AAPL) shares fell 4.3% last week to 108.84, undercutting its 50-day line and its 110.33 buy point.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY price action showing the stock market likes certainty.
The election remains up in the air but the message is clear, Donald Trumps “X” factor and closer poll position, spooked the markets.
Stock futures bounced overnight and into this morning but we should interpret this as election volatility, not a new reason to be aggressively long. Smart traders see day trading opportunities right now and trim position size on swing trades.
Be a smart trader.
Day trade and be prudent with swing trades.
Stocks in Play: $PCLN research on finviz.com
$PCLN Earnings NEWS: Priceline (PCLN) Q3 Earnings Preview: What’s in the Cards?
The Priceline Group Inc. (PCLN – Free Report) is slated to report third-quarter 2016 earnings on Nov 7 after the bell.
The company is one of two leading players in a highly fragmented online travel booking market, the other one being Expedia (EXPE). But the two companies are different because Priceline generates most of its revenues overseas particularly Europe while Expedia is more focused on North America.
Both companies are expanding geographically. Read More on zacks.com
What To Expect When Priceline Reports Q3 Earnings
Online travel company Priceline Group (PCLN) is expected to maintain double-digit growth rates when it reports third-quarter earnings after the market close Monday.
The Wall Street consensus is for Priceline to report revenue of $3.6 billion, up 16% year over year, with earnings per share minus items of $29.92, up 18%. The company generates about 80% of its gross bookings from its international business, primarily from Booking.com. Expedia is more focused on North America.
Continue Reading on investors.com
Stocks to Trade 11-7-16 | Monday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: X, CAR, NUE, UAL, DAL, PBF
Negative last 20 and 5 trading days | closed 2% lower from the open: fslr, tsn, mur, sm, nfx, twlo, apc, acia
Quarterly Order Flow:
Bullish Stocks to Trade: BHI, UAL, DAL, VLO, EXPE, NFLX, GS, PNC, DE, BA, MA, PRU, AKAM,
Bearish Stocks to Trade: fslr, tsn, nfx, twlo, cost, mcd, dltr, acia, bidu, low, gpor, cah, hon, ctrp, amgn, cci, tjx, rrc, lng, hd, cvs, gild, kmx, myl, teva, prgo, agn
2x Normal Volume: CTL, TEVA, BHI, FSLR, LVS, KHC, EOG, CAH, SWKS, ABC, LBTYA
Inside days: pfe, teva, abbv, baba, aig, cvs, myl, cf, dis, agn, met, jci, gps, crm, hca, unp, vlo, unh, pru, utx, tjx, ibm, gpor, lulu