Today’s Trading Lesson…
Day trading rules are the gorilla glue that hold your trading together.
Without rules you don’t stand a chance. With rules, well, it’s less difficult.
Yes- day trading is that challenging.
Day Trading Rules are the Ultimate Sign You Take Trading Seriously
There are so many moving parts, it’s easy to get seduced into the action. The action is what we crave, but it’s patience that pays the bills.
We need day trading rules because we can’t predict the market. You may think you can, but trust me, you can’t. Nobody can.
What you can do however, is know exactly what you are going to do. This is where the money is. The more specific your rules, the more consistent your P&L will be. Take that to the bank.
Let’s dive into my trading rules. Leave a comment if you agree, disagree or simply want to add your own rules to the conversation…
On the Tape Today...
$DIS | Disney stock price hovering at the psychological $100 level. Clearly showed lack of order flow through this price, but we can't ignore the trade potential. An "energy candlestick" through $100 triggers a swing trade with two targets. The first @$103, then $106.75. (see chart)
$CRM | Salesforce short covering for two days sets up a new bearish trade scenario. After solid momentum supply hit the stock from $80 down to $66.25, I am looking for a spot to sell short after the next day advance. The $72 area looks like the ideal price.
Jim Rohn - Why You Must Challenge Yourself
Dow reaches for a fresh record, but it’ll be a struggle
U.S. stock futures struggled for direction on Tuesday morning, with the Dow average fighting to push into fresh record territory a day after closing at an all-time high.
With no Federal Reserve speakers on tap ahead of next week’s rate-setting meeting, investors instead focused on the upcoming factory orders and productivity data as well as a slump in oil prices.
“The resilience in financial markets to be able to absorb and adjust to surprises this year has been quite surprising in a lot of respects, having largely put the unexpected Brexit vote and Trump victory behind them, with the Dow once again putting in yet another record high yesterday,” said Michael Hewson, chief market analyst at CMC Markets, in a note.
Continue Reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 12-6-16 | Techs Rally
Nasdaq Leads As Techs Rally; Nike Runs Ahead On Dow, But Merck Weighs
The major averages ended on the positive side Monday, with the Nasdaq taking the lead as several chip stocks rallied.
Solar stocks, oil and automakers advanced in the stock market today, while managed care, retail and airline stocks lagged.
Ferrari (RACE) raced ahead 2.8% to a 52-week high in rapid turnover. Shares of the Italian race car maker are well extended from a 50.19 buy point of a deep cup-with-handle base and a subsequent bounce off the 10-week moving average.
Dow stock Nike (NKE) retook its 50-day line in faster-than-usual volume for the first time in nearly a month, finishing up 2.75%.
Rival Under Armour (UA) climbed 1.3% in weak trade. The Baltimore-based company confirmed that it struck a 10-year deal to be Major League Baseball’s official on-field uniform provider, from 2020.
On the downside, UnitedHealth Group (UNH) lost 1.9% in above-average volume. The managed care provider’s stock is coming off Friday’s all-time intraday high, which followed a postelection rally of as much as 19%.
Continue Reading on investors.com
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Tape Reading the SPY ETF
$SPY clearly in a five day trading range.
Nothing wrong with that, it’s actually healthy after an unforgiving advance. The problem you face now is patience.
I say problem because if you didn’t participate in the advance, you make mediocre trades because you “need” to make money. You see the holidays looming on the horizon.
You can look at this two ways. “I missed out,” or “Time to improve my stock picking skills…” Please choose the latter. 🙂
Oil and financial stocks show plenty of volatility and we have no shortage of tech news. Don’t let a trading range in the $SPY be an excuse.
Stocks in Play: $AAPLresearch on finviz.com
Apple Watch shipments plunge 70% as consumers favor simpler wearables, IDC says
Despite the release of a zippy new model, the Apple Watch may be doomed for tepid sales, based on new data.
Eight-five percent of the wearable technology market is comprised of “basic” devices that don’t run third-party apps, according to quarterly data from the International Data Corporation (IDC). Simple wearables saw double-digit growth during the third quarter, IDC said, but when smartwatches were added to the mix, the market grew only 3.1 percent from a year ago.
That was bad news for Apple, who saw wearable shipments fall 71 percent year-over-year in the quarter, to 1.1 million units. Apple does not break out its Apple Watch sales.
Read More on cnbc.com == >>
Apple Watch Q3 Shipments Plunge; Fitbit Lead Widens In Wearables
Despite a 71% plunge in shipments of Apple’s (AAPL) Apple Watch devices, overall shipments of wearables rose 3.1% in the third quarter vs. the year-earlier quarter, market tracker IDC said Monday.
Fitbit (FIT) widened its lead, according to IDC’s numbers, but among the top five vendors Samsung had the biggest rise.
“It’s still early days, but we’re already seeing a notable shift in the market,” IDC analyst Jitesh Ubrani said in the company’s release. “Where smartwatches were once expected to take the lead, basic wearables now reign supreme.
“Simplicity is a driving factor and this is well reflected in the top vendor list as four out of five (all but Apple) offer a simple, dedicated fitness device.
Continue Reading on investors.com == >>
Stocks to Trade 12-6-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: AA, IONS, HFC, PBF, RRC, VLO, KORS, URB, X, GPOR, TSO, STLD, BWA, WNR, PCAR, NCLH, CLVS, BBY, VFC, ABBV
Negative last 20 and 5 trading days | closed 2% lower from the open: swhc
Quarterly Order Flow:
Bullish Stocks to Trade: X, NVDA, PCAR, NUE, GS, MAR, MAR, LRCX, BHI, PRU, STT, COF, EOG, URI, PNC, CVX, UNP, BA, SLB, HAL, DE, DVN, KSS, APC, LYB, NFX, CAT, TGT, UAL, UNH
Bearish Stocks to Trade: ew, amt, mdt, aem<40, tsn, nee, twlo, cci, htz, tsla, trip, crm
2x Normal Volume: URBN, LULU, TSO
Inside days: mu, t, vz, xom, cvs, cf, nflx, lly, hbi, fitb, jnj, mpc, bp, cl, hd, axp, twlo, wfm, mat, skx, hon, wba, dfs, ups, gis,