Today’s Trading Lesson…
Becoming a Successful Day Trader
Successful day traders specialize and refine the use of one or two trading techniques and become experts in their execution.
Focusing on one or two strategies will bring repeated success.
Every time someone brings out a new strategy, we run to it, hoping for the Holy Grail. Well, I have not found any Holy Grails in my day, but I have identified a number of tactics that bring repeated success.
Knowing how to execute a particular strategy and being able to find the stocks that are ready to move when you want to trade is the most difficult situation facing most day traders.
On the Tape Today...
$KMX Carmax Inc. produced an inside day after an earnings fueled trend day. This price action gives us another opportunity for volatility. Looking for a $66 buy-stop for a day trade long with a $$68.50 target to sell. If the stock price trades through this level with volume and closes near the highs, a swing trade triggers with a $73.75 target. (see chart)
$VRTX Vertex Pharma finally triggered the short-sale on double normal volume, with a solid close on the lows. A long-term breakdown like this can trigger a snap-back, be disciplined of the stock price trade back above the $74.50 level and exit the short. Looking for a $72.25 sell-stop and a swing trade to cover @ $65.50.
Stock Market Today
Attack of the Robo-Traders
It’s shortly past midnight, UK time, Oct. 7, 2016… Suddenly… in a bolt from the blue… the British pound sterling plunged 6% in about two minutes. Oceans of sweat begin filling the trading floors. A 1% or 2% daily move in an asset as liquid as the pound is banner news.
And here… a 6% crash… in two minutes. Brexit was old news by that point. And even Brexit wasn’t that bad.
Barrick to Teck Give Outlooks for Miners Rocked by Brexit, Trump I
t’s been a turbulent year for miners, with metal prices starting near multi-year lows as executives drew from a common playbook: slashing spending, costs and debt. Then came Brexit and the U.S. election and gold and base metals diverged
Dow futures in holding pattern ahead of rush of economic reports
U.S. stock futures on Thursday pointed to a muted open, as analysts suggested the post-election rally is catching its breath as the Christmas weekend approaches. Investors are waiting for a raft of economic data due before the open that might jolt the market out of its pre-holiday lull.
Is The Auto Industry Slowdown Signaling Trouble Ahead For The Overall Economy
While it’s not as applicable today, there used to be a saying that “as goes GM, so goes the economy.” While the “Big 3” aren’t quite as big as they used to be, they still offer vital clues about the overall economic health of the United States.
Unfortunately for anyone who has been paying attention, those “vital clues” are all flashing red warning signs as each passing day seems to bring more news of idled plants and/or shift reductions.
How Trump Could Accidentally Fuel a Global Trade Boom
Are the stars aligning for an uptick in U.S. imports because of a strong dollar, a tight labor market, and expected fiscal stimulus? Far from jolting the U.S. into a protectionist lurch, might President-elect Donald Trump unwittingly help buoy global trade next year? Here’s one scenario to mull over […]
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 12-22-16
Stock Indexes Quiet, But News Looms On GDP, Durable Goods
U.S. stock indexes strolled to small losses Wednesday in the run-up to the Christmas weekend, but could face a hard test Thursday.
Blue chips tilted to the downside. The Dow has been a leader in the stock market in the current rally. Of the 30 Dow components, about half are at or near a 52-week high. Three scored new highs Wednesday — Chevron (CVX), DuPont (DD) and Travelers (TRV) — though volume was weak and the stocks gave back most of the gains.
Wednesday’s slow turnover was no surprise, considering the heavy lineup of economic news for Thursday.
Watch Video and Read More on investors.com
Tape Reading the SPY ETF
$SPY traded only 60.5 million shares on Wednesday.
Not shocking with today’s packed economic calendar.
Constructive price action for a trend. Classic tape reading tells us a light volume pause implies a continuation. Which means shares are not changing hands from smart money to retail.
The close on the lows would have significance if we traded over 100 million shares.
Continue to look long unless the $SPY breaks the $224.75 support. If this happens the $SPY breaks the presidential election up trend and it will be time to look at short-sales to hold longer than a day trade.
A quick tip during light volume and tight ranges…use the 30 minute chart as if each candlestick were a complete day. do not look for an entry unless that chart is well-bid or well-offered.
Apple hit with wide-ranging lawsuits from Nokia over iPhones, iPads, iPods, computers, watches
Finnish mobile phone giant Nokia on Dec. 21 launched patent-infringement lawsuits against Apple, claiming the Cupertino firm is illegally using Nokia technology in iPhones, iPads and other popular devices.
“Through our sustained investment in research and development, Nokia has created or contributed to many of the fundamental technologies used in today’s mobile devices, including Apple products,” Nokia’s head of patent business Ilkka Rahnasto said in a statement. “
After several years of negotiations trying to reach agreement to cover Apple’s use of these patents, we are now taking action to defend our rights.”
Continue Reading on siliconbeat.com
Nokia goes after Apple again in court over iPhone technology
Nokia sued Apple for patent infringement Wednesday, claiming the Cupertino-based company declined to establish licensing deals for the Nokia technology used in Apple products.
Finland-based Nokia filed complaints both in East Texas and in Germany, according to Bloomberg. The lawsuits cover 32 patents for elements such as display, user interface, software, antenna, chipsets and video coding.
Continue Reading on bizjournals.com
Stocks to Trade 12-22-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CLVS, HAL, SLCA, TRGP, YELP
Negative last 20 and 5 trading days | closed 2% lower from the open: kss, sm, teck, trip, urbn, vrtx
Quarterly Order Flow:
Bullish Stocks to Trade: CVLS, TRGP, URI, NVDA, CMA, VLO, IONS, HES, AVGO, CVX, IBM, COF, RCL, KMX, PNC, UAL, PRU, GS, X
Bearish Stocks to Trade: trip, vrtx, ntnx, acia, mnk, crm, aem, rrc
2x Normal Volume: nke, twlo, cc, yelp, acn, bbby
Inside days: aapl, wfc, wmb, sbux, qcom, lly, ftnt, gpor, cop, cacd, luv, fitb,m, low, cat, mcd, len, kss, coh, de, bwa, ual, jwn, tol, pnc, lulu