Today’s Trading Lesson…
How Institutional Order Flow Moves the Stock Market
If there is buying pressure in a stock, let’s call that buyer the institutions. When the stock pulls back; is the institution who created that uptrend with demand, simply letting up on the buying pressure to allow the pullback to happen?
I think they are doing two things. Depending on what type of fund it is, a stock will reach a valuation point and the institution will exit the position. They are getting out and not buying anymore they are waiting for the valuation to pull back.
So now they are stepping back. They are getting out and waiting for a better valuation to buy again.
We keep harping on watch the volume, watch the volume, we probably sound like a broken record. But if you’re a smart trader, volume, can tell you volumes!
Volume can tell you so much information. It can tell you who is participating. And we only want to be involved when institutions are participating, and active. Because we want to be riding on their coattails. If the volume is low its caution. Day trade only, get in get out.
On the Tape Today | 2-2-17
IBM momentum pause and hammer candlestick sets up a new buy-stop above the high of the first 30 minutes. $174 stop loss and a $179 target to sell.
HES $53 sell-stop triggers two new targets. A short-term $51 cover and a wider profit target down to the $46.25 area. The bearish order flow is across the sector, looking for a slow, grind move.
Stock Market Today: Heatmap of the S&P 500
Stock Market Today 2-2-17 | Thursday Edition
Leaked Executive Order Reveals Trump’s Plans For H-1B Visas
Back in March 2016, Trump trashed the current H-1B visa system, saying “The H-1B program is neither high-skilled nor immigration; these are temporary foreign workers, imported from abroad, for the explicit purpose of substituting for American workers at lower pay.”
Pressure ahead for Wall Street stocks as Fed, political worries weigh
U.S. stock futures were pointing to a loss for broader markets on Thursday, amid a view from some that the Federal Reserve came across as slightly hawkish at the close of its policy meeting.
Earnings deluge; Trump diplomacy; Takeover time?
A decade after the U.S. housing market collapsed, Federal Reserve officials are watching rising apartment towers as the next potential asset-price bubble, which could add to the debate about the pace of interest-rate hikes this year.
Deutsche Bank plunges back into the red with $2 billion loss
Deutsche Bank is firmly back in the red.
Germany’s biggest bank posted a net loss of €1.9 billion ($2.1 billion) for the fourth quarter of last year, hit by charges that included its costly settlement with the U.S. government over toxic mortgage assets.
Tape Reading the SPY ETF
$SPY swing low on the daily charts implies a short-term bottom and two days of momentum.
Two days of well-bid price action takes us to new all-time highs. With the FOMC behind us, a strong AAPL yesterday and AMZN earnings today, the table is set for this game plan.
NASDAQ stocks continue to shine, scroll down to find some four letter symbols for today.
Amazon Earnings Puts Spotlight on Retail ETFs
Amazon.com Inc.’s (AMZN) rise seemingly knows no bounds: the shares have gained nearly 128% over the past 24 months. All the S&P 500 and NASDAQ 100 have done over the same period is rise 45% …combined.
Amazon is now the fourth-largest component of the S&P 500 and the third-largest constituent in the NASDAQ 100. These points underscore the fact that Amazon’s earnings updates are among the most widely followed events of the quarter, something to remember when the e-commerce giant delivers quarterly results on Thursday after the close of U.S. markets.
Amazon earnings: Record holiday sales to take center stage
Amazon.com Inc. is expected to report much stronger earnings and sales when it unveils fourth-quarter earnings after the market closes Thursday, buoyed by a record holiday season for e-commerce sales.
Amazon’s AMZN, +1.08% cloud-computing business has been a star over the past few quarters. While that business, whose closest competitor is Microsoft Corp.’s MSFT, -1.66% Azure, is expected to show continued strength this quarter, much of the focus in this particular earnings report will be on e-commerce sales.
Amazon captured more than half of all online sales growth last year, new data shows
Amazon doesn’t report fourth-quarter sales until Thursday. But if the latest data from Slice Intelligence is any indication, the online retailer had another breakout quarter.
Stocks to Trade 2-2-17 | Thursday Edition
Short-Term Trading Momentum:
Bullish Momentum: AGN, NVDA, CF, NSC, TSN, ALXN
Bearish Momentum: x, ups, lb, sm, oke, nue, apc, hes
Quarterly Order Flow:
Bullish Stocks to Trade: AAPL, NVDA, URI, NSC, LRCX, FB, AVGO, LYB, CLVS, PNC, BA, BABA, NFLX, ADBE, IBM, WDC,
Bearish Stocks to Trade: KORS, RH, MAT, LB, SM, WFC, EQR, TGT, HES, TROW, JWN, DKS, ACN, QCOM, OXY, BMY, FSLR
2x Normal Volume: AAPL, OKE, UAA, UA, UPS, NOV, TMUS, ADP, EA, D, SM, AET, DISH, EL, EQR, IR
Inside days: uaa, bmy, jpm, csx, wmt, dal, pg, txn, ctsh, jnj, cvx, hbi, abbv, mdt, vlo, m, cl, gs, tsla, kss, aa, hon