Stock Trading Today 12-28-16 | South Korea Fines QCOM

South Korea fines Qualcomm $852.9 million for alleged antitrust violations

SEOUL — South Korea’s antitrust watchdog fined Qualcomm Inc. $852.9 million for alleged antitrust law violations as the U.S. chip maker faces global scrutiny over its patent-licensing business.

The Korea Fair Trade Commission said on Wednesday that Qualcomm violated antitrust law by limiting the access of competing chipset makers to its patents. The company also forced mobile-phone manufacturing companies into unfair license agreements by refusing to supply crucial phone chips to those that disagree with its terms, the KFTC said.

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$QCOM 12-28-16

Stocks to Trade 12-28-16 Wednesday Edition

Bullish Momentum: CRC, NVDA, YELP, CF, MOS, TSLA, SLCA, ADNT

Bearish Momentum: mnk, srpt


Bearish Order Flow: lb, expe, baba, vrtx

Double Normal Volume: NVDA

Today’s Trading Lesson

Spotting and Trading Exhaustion

Two of my key trading questions drive 90% of my decisions:

  1. “Is the trade a good long (or short)?
  2. “Is the trade a good long (or short) now?”

On the surface the first question seems the important one, and it is. However the second one is where most traders lose the most money.

Choosing a bias, determining order flow, makes trading easier. When you only need to look for an entry, the business of making money becomes simple. But choosing a bias is not enough.

$NVDA shows one of the best charts of 2016. The bias clearly points to a bullish order flow. Even the most staunch bearish traders would agree.

But is the stock a buy today? No.

One of the reasons many traders struggle, falls into the category of tape reading. Assessing the combination of order flow, price action, volume, momentum, risk/reward and volatility.

All of these factors determine a good trade idea. Most traders in coaching use one, maybe two.

Today NVDA shows us exhaustion. A parabolic move in price action, in the direction of established order flow, with double normal volume. Many traders also know this as capitulation, or a “clean-up print.”

The institutional order flow that created and sustained the bullish bias, sold the remainder of a large block of shares, to “clean up” the order.

This price action and volume offers a signal to sell, not buy. Will this call the top in the stock? Maybe. But that’s not what we’re looking for.

Exhaustion is a signal the big money is selling, finishing up the order. It does not mean to trade the other direction. There is not a new bias.

Keep your trading simple, and always track the order flow. That’s step one. The answer to question #1.

Tracking volume during advances and declines tells you if the order flow is changing hands.

Question one is important, but never accept risk without your answer to the second question.

Stock Market Today

Dow on track to make a fresh attempt to hurdle over 20,000

The psychologically important level has turned into a spot with “remarkable resistance,” and finally breaking above it could draw fresh cash into stocks, Aslam added.

“Every single day investors hope that the Dow index breaks that 20K mark, but so far their wish has not been granted,” said Naeem Aslam, chief market analyst at ThinkMarkets UK, in a note.

The psychologically important level has turned into a spot with “remarkable resistance,” and finally breaking above it could draw fresh cash into stocks, Aslam added

Toshiba Shares Crash After Write-Down Warning

Shares in Toshiba fall more than 20% after a warning about a multibillion-dollar write-down

TOKYO—Toshiba Corp. shares fell more than 20% on Wednesday, the maximum allowed for the day, after a warning about a multibillion-dollar write-down caused investors to flee.

Trump Tweets “Thanks Donald” For Highest Consumer Confidence In 15 Years

When we observed yesterday that according to the latest Conference Board data, US consumer confidence had soared to 113.7, the highest print since August 2001, we had just one question: would Trump take credit for the spike…

Facebook Safety Check creates false alarm in Bangkok

Facebook users in Bangkok were falsely alerted to an “explosion” in the Thai capital, after the social network activated its Safety Check feature.

It allows Facebook users in danger zones to mark themselves as safe, but in this instance was triggered by a protester throwing firecrackers.

Embracing the Dark Side of Personality to Discover Our Best Trading

Each of us has a dark side to our personality that has the potential to undercut our trading.  Much of trading psychology is devoted to minimizing our vulnerabilities–steering clear of that dark side–and pushing ourselves to do the right things.

Make Ten Perfect Trades...

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