Today’s Trading Lesson…
Beginner Trading Advice | Mentoring Experience
What is the best beginner trading advice you would give yourself? A common question I get…
The answer may surprise you. It’s most likely the answer you don’t want to hear.
You probably want to hear about the money you can earn stock trading. If you buy a “how to trade stocks” book, you skip to the entry signal chapter. After all, perfectly timed entries create winning stock trades.
Well, to put it bluntly the answer is no.
Sure, improving your entry skills is important. You need to understand bull flags, inside candlesticks and breakout trades. You need to understand support and resistance.
You need to know how to set a correct stop-loss and how to set a profit target.
On the Tape Today...
$DE | John Deere holding the bullish gap nicely for six days and produces a solid trend day yesterday. Looking for a $103 buy-stop and a day trade target to sell of $105.70. If the stock does not hold yesterdays close I plan to exit for a small loss and look for a re entry.
$FB | Facebook setting up a swing trade short next week. The recent decline from $122 to $115 hit minor support and will most likely need a day or two at this level. A $113.50 sell- stop triggers a new short with $108.25 as the target.
Be Tougher Than Your Life Is | Motivation
Opinion: There’s a two-thirds chance that the U.S. stock market will rise in 2017
CHAPEL HILL, N.C. (MarketWatch) — There’s a 65.5% chance that the U.S. stock market will rise in 2017.
If you’re like most investors, that’s welcome news.
Given the advanced age of the economic expansion, an overvalued stock market by virtually any measure and the uncertainty surrounding a new president, a two-out-of-three chance of turning a profit seems almost too good to be true.
Still, before you make too much of those odds, know that they would not be meaningfully better or worse if conditions were different. That’s because the stock market looks forward, not backward. Current conditions are already reflected in stock prices.
The stock market trades higher or lower at any given time to settle on whatever level that results in it being higher a year later two out of three times (on average).
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 12-2-16 | NASDAQ Gets Hit
Nasdaq Slumps On Chip Weakness; Apple Lags On IPhone 7 Concerns
The Nasdaq composite tumbled for the second straight session Thursday, falling 1.4%, with semiconductor and software names leading the downside.
Nine of the Nasdaq 100’s 10-worst percentage decliners hailed from the chip sector, with losses ranging from 4% to 7%. Microchip (MCHP) and Lam Research (LRCX) took the biggest hits, falling around 8% each.
The S&P 500 eased 0.4%, while the Dow Jones industrial average added 0.4%, helped by strength in Goldman Sachs (GS). Apple (AAPL) lagged in the Dow after Taiwan tech news site DigiTimes reported that Apple is cutting back on production of iPhone 7 handsets.
Preliminary data showed volume on the NYSE and Nasdaq coming in higher than Wednesday, more so on the Nasdaq.
Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY price action trading according to plan.
The $SPY hour chart broke the trend line support and shows the $218 level as the spot to begin looking for a new bid. My game plan for the morning has prepped for a lower open and the market to find a bottom after the initial push lower.
The U.S. jobs number may give us positive report and create a higher push off the open as the first move. If that’s the case I plan to trade the first decline off the highs.
We spend a lot of time here on the $SPY but we need to mention the NASDAQ and tech stocks yesterday. FB, AMZN and AAPL all provided amazing short-sales trades.
To become a professional you need to cycle through your stocks. The index showed solid selling pressure all day and the leaders, were great trades off the open.
I’m not saying to build a whole new list but you must watch the “market” stocks. It’s easy money when they are in sync. You can reduce your shares if you don’t normally trade them but take a look at the charts, especially Facebook.
Stocks in Play: $GS research on finviz.com
Goldman Sachs (GS) News: Goldman Sachs to Gain in Trump Era
Goldman Sachs (GS) shares are a good buy according to analysts at Deutsche Bank (DB) and Barron’s.
Barron’s believes the investment bank is poised to benefit from several trends. After seeing heavy buying following President-elect Donald Trump’s surprise victory, Barron’s believes further upside is to come thanks to a number of Trump policy proposals that are likely to become law following his inauguration.
Lower tax rates and less regulation are the most immediate upsides for GS, but Barron’s also noted higher interest rates, which are targeted by both Trump and the Federal Reserve, are likely to boost the bank.
Continue Reading on investopedia.com
Goldman Sachs hits 8-year high as bank-friendly Trump administration appears to take shape
Goldman Sachs shares hit an eight-year high and finished with their best month since January 2012 on Wednesday, as a more bank-friendly Donald Trump administration continued to take shape.
The stock finished the day up 3.6 percent, closing at $219.29. Deutsche Bank upgraded Goldman to buy from hold, saying it seems well-positioned for a stronger macro environment given “revenue upside, good cost control and a valuation below peers.”
Watch Video and Read More == >> cnbc.com
Stocks to Trade 12-2-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: PCAR, TWX, WFC, LB, COF, AET, URI, GS, BWA, CXW
Negative last 20 and 5 trading days | closed 2% lower from the open: wb, swks, twlo, srpt, qcom, aia, etp, crm, akam, adsk, ea, avgo, baba, tsla, vtr, adbe, fb, trip, trip, bidu, htz, agn, ma
Quarterly Order Flow:
Bullish Stocks to Trade: GS, URI, AET, COF, ADNT, DE, KMX, EOG, UNP, KSS, STT, PNC, PRU, UNH, CVX, BA, LYB, CAT, HAL, NUE, BHI, COP, UAL, X, IBM, WDC, NVDA
Bearish Stocks to Trade: twlo, acia, crm, vtr, bud, fb, trip, htz, hcn, agn, lly, ew, mdt, gild, tsn, mnk
2x Normal Volume: FB, NVDA, V, DG, MCHP, GS, BUD, CRC, LRCX, LYB, CLR, ADI, ADBE, WB, ADSK
Inside days: hal, vlo, cog, rrc, cvs, jci, gpor, pbf, clvs