Today’s Trading Lesson…
Tape reading is more than looking at price.
We are looking at price, volume and where they intersect.
Increased volume is important but it needs context. Where volume trades is the difference between lightning bug and lightning.
Volume after a parabolic move higher or lower represents “clean-up prints,” or what I call exhaustion. Exhaustion represent the end of a move.
Volume and large bodied candlesticks coming out of a consolidation is what I call fuel. The start of a new move.
Heavy volume during a consolidation, with churning of prices, is accumulation or distribution. A potential change of trend.
Scroll to the bottom of the blog each day and see the list of inside candles and stocks with 2X normal volume. These stocks give you a terrific place to look for break outs or counter trend trades to exhaustion.
On the Tape Today...
$MPC breakout over $37.67, swing trade target $41.71. Do not day trade it below the open price
$TSLA gap fill bear flag in the $214 area. Look for a 15 minute topping tail.
$LBTYA short sale with target of $26.19, great ATR of 1.91 for a $26 stock.
$GS seems to have bottomed out. Not a long and not a short. Better trades out there.
$MPC 6-30-16 (Click to Enlarge)
Dow industrials are just about 320 points shy of pre-Brexit close
Don’t call it a comeback. But after stocks were thrashed following the U. K.s’ decision to sever ties with the European Union, Wall Street has been steadily creeping back to its pre-Brexit levels.
Last summer, stocks were assailed by fears that an economic malaise buffeting the world’s second-largest economy, China, would hobble the rest of the world. Combined with chaos in China’s stock market, that set the stage for a brutal plunge by global equities. But things eventually steadied and markets staged a rally. The S&P 500 and the Dow each saw a two-day rebound of around 5% on Aug. 26 and 27.
This time around, stock investors are trying to claw back from Brexit, or a British exit from the EU. The S&P 500 is up 3.5% since Tuesday, the Dow is up about 3.2%Continue Reading — >>
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 6-30-16 | $NKE Earnings
Dow, S&P 500 Close In On Key Level; Did Big Banks Pass Final Stress Test?
U.S. stocks extended their rebound Wednesday as they followed European bourses higher. Nike and American Express boosted the Dow with big gains, while banks rose ahead of the Fed’s stress test results.
The Nasdaq rallied 1.9%, the S&P 500 jumped 1.7% and the Dow Jones industrial average added 1.6%, as the major indexes closed near session highs. The Dow and S&P 500 are close to regaining their 50-day lines. Volume was mixed, lower on the NYSE but higher on the Nasdaq, according to preliminary numbers.
Oil stocks again led the upside amid a drop in the Energy Information Administration’s weekly U.S. stockpiles report. West Texas intermediate crude surged 3% to $49.32 a barrel.
Automakers and shoe and apparel makers also outperformed in the stock market today. Tesla (TSLA) cruised 4% higher in fast trade for a third straight advance. The stock is 5% and 4% below its respective 50-day and 200-day moving average lines.
Nike (NKE) sprinted 4% in speedy turnover. Shares fell Tuesday in extended trading after the athletic footwear and apparel maker reported fiscal Q4 sales that missed views. Analysts overall remain bullish on Nike’s long-term outlook — a few analysts trimmed their price targets but maintained a buy rating.Continue Reading — >>
Stocks in Play: $NKE research on finviz.com
$NKE NEWS: 3 Reasons Why Nike Stock Is Up Despite Weak Sales, Guidance
Nike (NKE) late Tuesday reported slowing growth for North American sales and futures orders, a sharper gross margin decline than expected, and light sales guidance.
But Nike shares — after sinking after hours on its fiscal fourth-quarter report — had their best day of 2016. Here’s a look at a few reasons why:
Wall Street Bullish On Long-Term Story
Analysts snipped away at their estimates, but sounded pretty positive on the athleticwear behemoth’s continued reign.
Jefferies said Nike is “still a winning stock for the long term,” reiterating a buy rating but trimming its price target to 65 from 67. Cowen and Macquarie are holding on to their outperform ratings — Cowen lowered its estimates but said Nike’s long-term potential and “dominant global position” meant that late Tuesday’s after-hours tumble made shares attractively “cheap.”Continue Reading — >>
Stocks to Trade 6-30-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: MUR, UA, LNG, MDVN, YELP, CLR, MPC, CERN, CHTR, CNQ, LLY, MBLY, NFX, LULU, ESRX
Negative last 20 and 5 trading days | closed 2% lower from the open:
Quarterly Order Flow:
Bullish Stocks to Trade: SLCA > 35, CLR, CNC, NFX, LULU, DLTR, CVX, DLR, UNH, WPZ
Bearish Stocks to Trade: gild, lbtya, tif, alk, pnc, pru, stt, swks, kmx, lnc, ual, tsla
2x Normal Volume: NKE, LBTYA, DYN, VOYA
Inside days: jd, dow, kr, ccl, wfm, dd, dg, aer,