Today’s Trading Lesson…
Planning Your Trades in Advance, Makes Trading Easier…
What if profitable trading was easy?
I know, I know… “He’s crazy, trading is hard…”
Well, let’s think about it. How do profitable algorithms produce consistent winning months? A computer simply follows a checklist of”if-then” scenarios and always makes the same decision.
What if you had the same type of checklist? Wouldn’t that make trading easier? Imagine a custom-built guide that matches your resources, your experience and your goals, just perfectly?
How would it feel to make the correct choice every time? Picture an outline that helps you focus on your strengths and avoids low-probability conditions that don’t match your unique goals or risk tolerance.
How much easier would your trading be, with that checklist?
On the Tape Today...
$TSLA | Tesla Motors Each day we chart inside days and post them to the "stocks to trade" section. Trading a breakout from an inside day is a niche strategy that can produce solid trend days. Generally it's a one day opportunity, and triggers regardless of the long-term order flow.
Today we see $TSLA setting up a second inside day this week. With the double bottom and inside day set ups, followed by bullish candles, sets up another trade today. $196, then $200 are the bullish targets. If the stock trades lower, I am letting it go. (see chart)
Trump rally’s best and worst stocks a month after the election
Time flies when times are good. A month after President-elect Donald Trump was elected president went by like a flash for many investors, but it has dragged on for many others.
Most of the best performing stocks since the Nov. 8 election are in industries one might expect. His promises to spend on infrastructure, help revive the mining and fossil-fuel industries, and roll back regulations has been a boon for the shares of energy, banking and construction-related companies.
Continue Reading on marketwatch.com
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Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 12-9-16
Stocks Defend Modest Gains; Yirendai, Ciena, Lumentum Soar
The leading indexes ended higher after a back-and-forth session Thursday, as stocks climbed after the opening bell for about half the day, then began to trim gains.
Goldman Sachs (GS) led the Dow by a broad stride, ending up 2.4% in heavy volume. The stock is extended after clearing a 17-month consolidation.
The rebounding Edwards Lifesciences (EW) outpaced all other S&P 500 stocks with a 7% gain. Wynn Resorts (WYNN) took the index’s hardest hit, down 11% as regulators in China moved to limit ATM withdrawals in the country’s gambling haven of Macau.
Watch the Video and Continue Reading on investors.com
Tape Reading the SPY ETF
$SPY continues the historic bullish run since the election.
It’s been a long time since the order flow traded this obvious. Traders and investors alike had a rough time finding volatility for most of 2016. We received a nice end of year gift card from the election.
The only caution I can give to yesterday’s price action comes from the NYSE $TICK indicator. The readings did not show institutional activity. The $VIX trended higher which created a yield sign for day traders. In case you’re new to using the $VIX, when the indicator rises, the market typically trades in the opposite direction.
With these two indicators not showing bullish confirmation, the stock market appeared ready to see profit taking.
The $VIX however gave up the intra day rally. A strong close would have indicated a decline today and smart traders positioning to be flat.
We didn’t get the perfect scenario to get a clean reading but the $TICKS/$VIX are worth stalking today for a similar set up.
== >> Kudos to Marc D. for an excellent job noticing all of these distinctions during our coaching call. Tremendous job making the correct analysis Marc, and how it should have affect your decisions. Really good job.
Stocks in Play: $NKE research on finviz.com
NIKE (NKE): NIKE Losing Sheen: Stock Grapples with Multiple Headwinds
NIKE, Inc. (NKE – Free Report) is one such stock which should not be part of your portfolio, as it has been losing sheen for now.
Sluggish future orders, foreign exchange headwinds and competitive pressure remain major concerns for the company. So far in 2016, this Zacks Rank #4 (Sell) stock has been down nearly 17% compared with the Zacks categorized Consumer Discretionary industry that has increased approximately 6.2%.
Let’s delve deeper to know what’s leading to the bearish run for the stock.
Read More on zacks.com
Stocks to Trade 12-9-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CRC, KORS, RCL, WB, SWKS, KSS, JWN, DISH, KMX, IONS
Negative last 20 and 5 trading days | closed 2% lower from the open: htz, lvs
Quarterly Order Flow:
Bullish Stocks to Trade: RCL, KSS, GS, JWN, DISH, KMX, PNC, STT, CMA, HAL, VLO, COF, PRU, DE, MPC, BA, PCAR, CVX, UAL, UNH, X, BHI, NUE, MAR, URI, UNP, CAT, WDC
Bearish Stocks to Trade: htc, bud, twlo, gild, mdt, crm, aem, trip
2x Normal Volume: LVS, ESRX, LULU, WYNN, ETP, GS, EW, COST
Inside days: ko, hbi, mdt, hal, bmy, low, ctsh, nwl, oxy, aal, jblu, celg, slb, wdc, wu, pm, tsla, utx, ma, gis, fslr, klac