Today’s Trading Lesson…
Reading the tape involves more than simply identifying order flow…
You have profit potential, recent momentum, “saturation points,” but an often ignored aspect of tape reading is bar-by-bar analysis.
Each day on this blog the last scan we run is inside days. The pattern is a strategy, regardless of the recent trend. The contraction in price action, leads to an expansion in volatility, a trend.
Twice this month we posted trade ideas in $TSLA noting the price action was “sneaky bullish…” Several inside day breakouts, with increased volume, gave clues to the great day trades and the future breakout.
Make sure you add bar-by-bar to your trading toolbox, the rewards and insights give you a powerful, complete picture to develop your trading ideas.
Tape Reading Analysis #1 $TSLA December 9, 2016 == >>
Tape Reading Analysis #2 $TSLA December 14, 2016 == >>
On the Tape Today...
$LULU Lululemon Athletica held the $66 support and formed a swing low with yesterday's price action. Looking for a day trade with a $68 buy-stop and a target to sell @ $69.75. If the stock does not trigger the buy-stop, planning for a 30 minute breakout. (see chart)
Stock Market Today...
FBI Warrant For Clinton Emails Released As Democrats Slam Decision: “I Am Appalled”
Since November 8th, disaffected Democrats have tried and failed repeatedly to undo the 2016 Presidential election. First their was the failed recount effort launched by Jill Stein, an obvious front for the Clinton campaign, in Wisconsin, Michigan and Pennsylvania.
Looking For Patterns In Stock And Bond Returns
Many, including me, are concerned about the run-up in the U.S. stock market, especially recently. Can we realistically expect more of the same, or are we likely to see a correction, and how bad might it be?
Data Leaks From Social Networks Threat in 2017, Kaspersky Says
Potential leaks of personal user data collected by internet giants and online services will be one of the major cyber-security threats of 2017, according to computer safety company Kaspersky Lab.
Criticism mounts for Merkel as manhunt continues after Berlin attack
The search for at least one perpetrator behind Germany’s deadliest terror attack in decades entered a third day Wednesday, as Chancellor Angela Merkel faced mounting criticism from her own party over her open-door refugee policy and lax security.
Turning Our Negative Patterns Into Positive Ones
The Greatest was right. The mountains ahead can inspire us; it’s the pebbles in our shoes that can irritate us and keep us from the climb.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 12-21-16
Stocks Up, GE Breaks Out; Why These 3 Small Caps Are Rising Fast Like Nvidia
Investors did not let a spate of violent incidents in Germany and Turkey spoil the ongoing Santa Claus rally in U.S. stocks as the market focused on the potential for more economic growth in the coming year.
Growth companies showed strength Tuesday, as seen by another gap up in Nvidia (NVDA) shares to new highs in robust turnover. Nvidia is No. 1 in the IBD 50. On Monday, Yahoo Finance named the Silicon Valley giant in graphics processors the company of the year.
Meanwhile, Apple (AAPL) rose to an intraday high of 117.50 before easing a bit. Ending the session at 116.95, the megacap tech is now within arm’s length of a possible breakout past a 118.79 base-on-base entry point.
Elsewhere in the stock market today, General Electric (GE) helped lift the Dow industrials, rising 1% to 32.25 and posting a third straight solid advance.
Continue Reading at investors.com | See the Charts and Watch the Video == >>
Tape Reading the SPY ETF
$SPY shorter-term trends showing a sloppy trading range, but the hourly trend since the presidential election remains intact. Not much profit potential unless we penetrate the all-time highs again.
A lower open presents a better opportunity for a long because it creates additional “room to go. Breakout trades seem to lead the list of frustrations right now. You can complain about lack of follow through, or learn from it.
Knowing your trade expectation in advance sets your trade management parameters. In other words, you know before the trade, if you should hold good trades, or exit into momentum. You know in advance if you should buy breakouts or bid a pull-back instead.
I switched the $SPY chart to hourly recently to give us a better view of potential. We know we have a long bias, but the shorter window gives us expectation for follow through.
Stocks in Play: $BBBY research on finviz.com
Bed, Bath & Beyond (BBBY) Q3 Earnings: Will It Disappoint?
Bed Bath & Beyond Inc. (BBBY – Free Report) is slated to release third-quarter fiscal 2016 results on Dec 21.
Last quarter, the company had delivered a negative earnings surprise of 5.1%. In fact, it has underperformed the Zacks Consensus Estimate by an average of 1.5% in the trailing four quarters. Let’s see how things are shaping up for this announcement.
Factors Influencing this Quarter
Bed Bath & Beyond continues to be impacted by sluggish mall traffic and high promotional costs. Further, due to its exposure to global markets, the company remains susceptible to risks associated with international operations like currency headwinds.
These factors have led the company to report dismal top-line results for almost 12 quarters now. Moreover, the company reported a second consecutive earnings miss in the last quarter.
Continue Reading on zacks.com
Stocks to Trade 12-21-16 | Wednesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: XLNX, CAR, TSLA, RCL, CLVS, IONS, KMX, X
Negative last 20 and 5 trading days | closed 2% lower from the open: gpor, wynn
Quarterly Order Flow:
Bullish Stocks to Trade: X, KMX, IONS, CLVS, NVDA, TRGP, UAL, PNC, GS, JPM, CMA, PRU, URI, WDC, COF, IBM, ACN, CVX, COST, VLO, BA, HES, UNH,
Bearish Stocks to Trade: gpor, rrc, kors, htz, aem, teva, ctrp<40, crm, ua
2x Normal Volume: ACAD, CMA, GPOR, TRIP, KMX
Inside days: fb, xom, bby, uaa, dhi, nflx, cf, pypl, unh, wfm, ctsh, mar, mbly, cl, gt, utx, ea, adbe, hrb, apa, hca, urbn