Today’s Trading Lesson…
For some, trading and adversity go hand-in-hand. Every emotion manifests in one trade. Our ego and financial reality takes over and we “NEED” each trade to earn a profit.
It doesn’t have to be that way. Yes…there is an easier way.
How many positions do you trade at once?
When I started trading in April 2000, the common wisdom sound like this, “find a good trade and get size. It’s better to have one big position…”
I believed it, the guy sounded smart and he was persuasive. It’s bullshit. Here’s why-
Trading is about probabilities, not whale hunting. Sure it sounds great to hit a big trade, and then brag about it. The problem with this advice is risk and sample size.
You are accepting incredible risk on a one-shot trade. This guys focus was on the profit side, and how much we could potentially earn if that one trade worked out. It was basically all-in.
A huge problem with this concept, especially for new traders, is […]
On the Tape Today...
$JPM 11-8-16 (Click to Enlarge)
$JPM short-term breakout appears golden, but a closer look at the long-term charts we have solid resistance. Topping tails on the weekly chart show problems with This level. I like the long but prefer to see a bullish energy candlestick before I bid for the stock. (see chart)
$NVDA clear order flow for the bulk of 2016, The up trend never challenged. $72 seems the number we need to penetrate for an acceptable risk/reward. If the stock opens above that level, be aware sellers came in 6 times the last two weeks. Wait for a pause on the 15 minute chart if you're day trading, wait for a close if you're swing trading.
$ATVI relative weakness on a strong bullish day. Also $43 represents the change of trend level, which confirmed the beginning of a new trend the last two days. Day trades with minor support @ $40 and $39, ultimate target to cover a short sale is $36
$BA clear bull flag off new 2016 highs. Looking for a $143.25 buy-stop with a target to sell of $145.80. Not quite 3-1 risk/reward but close. Most likely the last solid long with heavy resistance between $146-150.
LIVE NEWS STREAM | Election Coverage 2016
U.S. stock markets stuck in nervous wait as Election Day begins
An air of caution hung over U.S. stock markets early Tuesday, as American voters headed to the polls in a presidential election that analysts say is still too close to call.
On Monday, all three benchmarks scored their best day since March, as stocks staged a relief rally globally. The rally came after the Federal Bureau of Investigation said its fresh review of Democratic nominee Hillary Clinton’s emails wouldn’t lead to charges.
On Tuesday, however, traders were a bit more cautious as voting kicked off in the election.
“Markets and polling are looking for a Clinton win today, but the margin in the polling is not sufficient to give any sense of comfort. This is more so after the experience of the Brexit vote back in June, where the polls were suggesting a win for the ‘remain’ side and the vote went the other way,” said Simon Smith, chief economist at FxPro, in a note.
Read More on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 11-8-16 | Election Day
Stocks End Strong; Is Apple On Track To Break Out Again?
One day ahead of another historic U.S. presidential election, the relief rally by the stocks in the wake of an ended FBI investigation over Hillary Clinton’s emails finished strong Monday.
Meanwhile, Apple (AAPL) lagged the major indexes, yet the heavily influential stock is now making a second attempt to make a significant move past a 110.33 cup-with-handle buy point.
Apple closed the day up 1.4% to 110.44. After its Sept. 14 initial breakout, shares in the largest company on the U.S. exchanges by market cap rallied as much as 7.6% before backtracking along with the general market.
A wide range of industry groups tracked by IBD raced 3% higher or more, including jewelry retail, data storage, managed health insurers, hospitals, biotech, travel booking, security software and trucking. Gold and silver miners were the only stocks seeing deep losses.
Watch Video and Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY bounce looked great for a day, but today we can expect apathy, at least from the general market.
Election day has finally arrived. I believe we all want to exercise our right to vote, and end this bizarre reality show. $SPY volume traded 108 million shares, a decent to above average day.
This means there was some real trading happening. Possibly one more day of buying.
The bottom line though? The market traded back into the trading range.
Plenty of stocks to trade today but be sure your trades have “room-to-go,” $JPM a good example today of a breakout on the short-term, but not much profit potential.
Stocks in Play: $PCLN research on finviz.com
$VRX Earnings NEWS: Valeant earnings: Expect an update on plans to sell Salix
Valeant Pharmaceuticals International Inc. is scheduled to report third-quarter earnings before the bell Tuesday and analysts are expecting another decline in profit and revenue.
The company VRX, +0.37% has been battered over the past year, as a scandal about its drug pricing and accounting methods exploded into a major controversy that led to the ouster of longtime Chief Executive Michael Pearson and an overhaul of the company’s operations and strategy.
Read More on marketwatch.com
Can Valeant Turn Itself Around With This Earnings Report?
Valeant Pharmaceuticals International Inc. (NYSE: VRX) is scheduled to report its third-quarter financial results before the markets open on Tuesday.
Halfway through the third quarter, it looked like Joe Papa had really turned this company around, as Valeant shares were up nearly double from their lows, but it has been a different story of late.
These earnings could recapture the positive sentiment we saw in August, but they could also send shares even lower.
Continue Reading on 247wallstreet.com
Stocks to Trade 11-8-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: AAL, CELG, HCA, MOMO, MYL, NVDA
Negative last 20 and 5 trading days | closed 2% lower from the open: twlo, ntnx, ren, dva, hfc, srpt, wynn
Quarterly Order Flow:
Bullish Stocks to Trade: NVDA, PRU, GS, DAL, MA, BA, MET, UAL, NFLX, PNC, AKAM, DE, EXPE,
Bearish Stocks to Trade: twlo, ntnx, dva, lulu<55, wynn<86, cost, nvs, nfx, oxy, cah, cvs, teva, vtr, low, ua, hcn, lly, agn, hd, amgn, mck, acia, rrc, acad
2x Normal Volume: CTL, ABBV, ZTS, CCI
Inside days: symc, wmt, pg, wfm, oxy, kr, apc, scty, fslr, nfx, vlo, tsn, eog, mur, pbf