Stock Trading Today 12-5-16 | AET-HUM Deal Hits Snag

Today’s Trading Lesson

Will your next trade be profitable?

It’s the eternal question that makes us hesitate before we accept the risk. Something inside of us overcomes our fear and pushes the button to enter the trade.

If you’re good, you ask the question, “what am I am going to do if the stock moves in my favor or against me?”

You try your hardest to prepare for anything, but we both know the truth. You want every trade to move in your favor, without much stress. “Just give me a head start and I will manage the winners!”

The amount of stress we place on ourselves is intense. What if it wasn’t necessary? What if the result of each trade didn’t matter?

I know it sounds crazy but that’s how winning traders think. Each trade result doesn’t matter. 

Today’s video explains why your strategy is more important than your last trade.

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On the Tape Today...

$CAT 11-7-16 

$NFLX 12-5-16

$NFLX 12-5-16

$NFLX | Netflix showed solid relative strength on Friday with a strong close and a breakout of the recent trading range. Game planning for today triggers a $121.50 buy-stop with a swing trade target of $127.50. If the stock price trades back into the trading range. the stop-loss gets hit. (see chart)

$NKE and $LULU both showing a consolidation after selling order flow. $LULU triggers a sell-short below the $54 level, with a $44 target. If you prefer the industry from the long side, Foot Locker (FL) remains in solid buying order flow, but needs to clear the $75 level. $FL shows a solid example of "A good long, but not until reward potential above $75 is confirmed"

Napoleon Hill's Top 10 Rules For Success

Wall Street stocks poised to step higher as investors shake off Italian referendum

Apple in focus after big hint on self-driving car

U.S. stock futures pointed to an upbeat session for Wall Street on Monday, with momentum driven by a rebound for European equities, which shook off a “no” vote in Italy’s referendum on Sunday and pushed higher.

The government had argued the changes would have made it easier to pass laws, notably those aimed at making the country more competitive. Prime Minister Matteo Renzi announced he would resign on the heels of the result.

The move creates some uncertainty for Europe’s fourth-largest economy, and was viewed as a win for Italian euroskeptics, specifically the 5 Star Movement, which has campaigned for the country to leave the euro.

Continue Reading on marketwatch.com

Stock Market Today: Heatmap of the S&P 500

S&P-500-heatmap-12-5-16

S&P-500-heatmap-12-5-16

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Stock Trading Today 12-5-16 |NASDAQ Has Rough Week

Stocks End Week With A Whimper; Applied Materials Snaps Back Stocks ended the week quietly mixed, but it was a rough week for the Nasdaq composite, which fell nearly 3%.

Goldman Sachs (GS) and Caterpillar (CAT) lagged in the Dow, while Intel (INTC) outperformed with a 1% gain. Apple (AAPL) snapped a four-session slide, rising 0.3%, even after Instinet Equity Research lowered its iPhone 7 sales estimates due to “sedate” demand.

Instinet did cite strong demand for the 7 Plus. Sirius XM (SIRI) was the worst percentage decliner in the Nasdaq 100, falling around 6%, after CNBC said music-streaming service Pandora (P) is open to rekindling talks with Sirius XM about a possible merger Inside the IBD 50, Applied Materials (AMAT) reclaimed a 31.17 buy point after a volatile session Thursday for chip stocks that saw the Philadelphia semiconductor index dive 5%.

Starbucks (SBUX) fell 2% on news CEO Howard Schultz is stepping down. He’ll be replaced by Kevin Johnson, a Microsoft (MSFT) veteran and most recently CEO of Juniper Networks (JNPR). Continue Reading on investors.com


Tape Reading the SPY ETF

$SPY hourly chart formed a double bottom on Friday after piercing the trend line box. What I refer to as a PCOT in the Masters Trading Program. A potential change of trend.

Generally speaking, when price action breaks out out of the PCOT box– with momentum, a new “mark-down” phase begins. I said generally speaking because significant new always trumps pure technical analysis.  — >> “Trump” pun intended 🙂

The post election momentum has not reversed sharply (as many predicted it would) after the Trump victory. I’m not ready to call it order flow yet. I know that sounds weird with so many stocks furiously rallying to new highs, but in my experience violent rallies or declines need to pause before they prove the new order flow.

The game plan for the remainder of 2016 calls for cash flow. This time of year the term “window dressing” becomes popular again. The concept and practice exists, but I see us staying in this general area until January.

If you look for longer-term trades, make sure you have sufficient room to go. Be disciplined if you get long and your stock starts to pull-back. Long is the correct side for most of the stock market, but—you have to start asking, “What are the odds of continuation without a pause?”

$SPY-Hourly-Chart-12-5-16

$SPY-Hourly-Chart-12-5-16

aetna-humana-deal

Stocks in Play: $AET research on finviz.com

AETNA (AET) News: Aetna Starts Bid to Salvage Humana Deal in U.S. Antitrust Trial

Aetna Inc.’s attempt to assuage U.S. antitrust concerns over its $37 billion takeover of Humana Inc. by selling assets to a smaller company landed with a resounding thud.

On Monday, the insurers will try to convince a federal judge that the Justice Department’s rejection was wrong as the government’s lawsuit seeking to block the deal goes to trial in Washington.

The company Aetna wants to sell assets to, Molina Healthcare Inc., is unlikely to replace the competition that would be lost from the merger, according a filing by the U.S. Molina was criticized by the government as a junk-rated company whose previous foray into the Medicare Advantage market flopped.

Continue Reading on bloomberg.com — >>

Aetna-Humana antitrust trial to hinge on Medicare market

If Aetna and Humana are allowed to merge, will the 17 million seniors in the Medicare Advantage market be left with too little choice and face higher prices for health insurance? That’s the key issue in an antitrust trial on the proposed union set to begin in U.S. District Judge John Bates’ courtroom Monday morning.

The Obama administration argues in its pre-trial brief that the $37 billion deal would create Medicare Advantage monopolies in 70 counties and increase market concentration in hundreds more across the country.

Continue Reading on CNBC.COM — >>

 

$AET-12-5-16

$AET-12-5-16


Stocks to Trade 12-5-16 | Monday Edition

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: X, HES, WDC, WMB. BHI, STLD

Negative last 20 and 5 trading days | closed 2% lower from the open: swhc, twlo, dlph, lbtyk

Quarterly Order Flow:

Bullish Stocks to Trade: X, HES, WDC, BHI, HAL, NUE, TRGP, UAL, NVDA, JWN, KSS, URI, SLB, TGT, IBM, BA, PSX, UNH, COP, CVX, COF, UNP, PRU, AET, CAT, DE, PNC, GS,

Bearish Stocks to Trade: twlo, lulu < 55, trip, hca, htz, agn, tsla, mdt, bud, tsn, acia, ew, aem, lly

2x Normal Volume: SM, LLY, SWHC

Inside days: fb, gm, wfc, jom, amat, csx, nvda, baba, qcom, azn, yhoo, abbv, tgt, nke, wmb, adt, met, gs, tsm, cof, cat, mpc, stx, ma, mos, m, unp, wdc, de, wfm, lrcx, mar, ibm, ual, cah, ba, jwn, wynn, rost, kors

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