Today’s Trading Lesson | 7-18-16
“I keep getting stopped out of winning trades too soon, it’s driving me nuts.”
This was a half hour back-and-forth during a coaching call last week. The trader ended up “confessing” she was giving the five minute chart too much attention.
This is common, too common. Like the common cold for trading.
So…how do you solve this?
It comes down to basic math. You need to be OK with some positive trades becoming flat, in exchange for a few bigger trades to unfold. This losing trade off the five minute chart isn’t the problem.
The real problem is the $500 trade that should have been $1,000. To take your trading to the next level you need to accept losses, plan to re enter, and hold the winning trades with discipline.
Discipline on losing trades isn’t the problem, it’s a profitable trade problem. Visit the new traders library and get some answers — >>
On the Tape Today...
$LNG triple top resistance. A breakout over $40 has ten dollars room to go. (see chart)
$UAL, $AAL inside days after a short-covering rally. Looking for a sell short.
$CVS 50 sma resistance. Short sale target of $95.17
$UPS strong bullish momentum for three weeks. Look to bid a lower open today.
$LNG 7-18-16 (Click to Enlarge)
Dow on track for fresh record high, as earnings season roars on
Investors largely shrug off coup attempts in Turkey
The Dow Jones Industrial Average looks set to continue its record-breaking run on Monday, with stock futures pointing higher ahead of earnings reports from Bank of America, Yahoo and IBM.
Investors were largely shrugging off a failed coup attempt in Turkey over the weekend, which left almost 300 people dead.
Earnings deluge: The season continues at full speed on Monday, with results from Bank of America Corp. BAC, +0.29% toy maker Hasbro Inc. HAS, +0.28% and Charles Schwab Corp. SCHW, +0.41% due before the market open.
And after the market closes, the first earnings reports will come from the big names in technology. International Business Machines Corp. IBM, -0.58% Yahoo! Inc. YHOO, +0.69% Netflix Inc. NFLX, +0.38% and VMware Inc. VMW, +1.69% are all slated to release results after hours.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 7-18-16 | $YHOO Earnings
Dow Leads As Stocks Rally For 3rd Week; Herbalife Soars, Chipotle Sags
Stocks finished narrowly mixed Friday as Wall Street weighed economic data and earnings reports. Herbalife (HLF) soared early on settlement news, while Wells Fargo (WFC) fell after its quarterly results and Chipotle Mexican Grill (CMG) fell on a downgrade.
The Dow Jones industrial average closed less than a percentage point higher, but enough for a new closing high, while the Nasdaq and S&P 500 each closed down 0.1%. Volume was slightly lower across the board vs. Thursday, according to preliminary figures. For the week, the Dow rose 2%; the Nasdaq and S&P 500 added 1.5% apiece.
Telecom, food and biotechs gained in today’s stock market action, while retailers, media and travel bookers lagged.Read More — >>
Tape Reading the SPY ETF
$SPY futures positive this morning (7 am) and plenty of earnings reports today.
The looming pattern on the tape is four indecision candlesticks, ending with a bearish engulfing candle. The closing price in the $SPY marched higher, but the bullish tone is not as strong.
The correct trade is long. The order flow and momentum are still pointing higher, but the tape is changing.
Stocks in Play: $YHOO research on finviz.com
$YHOO NEWS: Yahoo’s looming sale to take center stage during earnings
Yahoo Inc. is expected to report second-quarter earnings after the market’s close on Monday, but the company’s looming sale will likely be front-and-center. The company is expected to stop taking bids and make a decision about a potential suitor, on or around Monday.
Here’s what to expect:
Earnings: Sell-side analysts surveyed by FactSet expect Yahoo YHOO, -0.63% to report a profit of 10 cents a share, compared with 16 cents in the year-earlier period. Contributors to Estimize, a software platform that uses crowdsourcing from hedge fund executives, brokerages and buy-side analysts to predict earnings, expect Yahoo to report slightly weaker earnings of 9 cents a share. Yahoo topped both consensus numbers in its last two reporting periodsRead More $YHOO
Alibaba Buying Yahoo Would Make The Most Sense For Everyone
Bidders involved are said to be Verizon, AT&T T +0.28%, Dan Gilbert, founder of Quicken Loans (said to have the backing of Warren Buffett’s Berkshire Hathaway BRK.B +%) and a host of private equity players.
Whatever the sale price of core Yahoo ends up being, it’s a pittance compared to the value of Yahoo’s investments in Alibaba (15%) and Yahoo Japan . The latter two are the so-called crown jewels of Yahoo’s valuation and make up the bulk, if not almost all of the company’s current market capitalization.Continue Reading — >>
Stock Trading Today 7-18-16 | Monday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: IONS, RLYP, HRI, X
Negative last 20 and 5 trading days | closed 2% lower from the open: bll
Quarterly Order Flow:
Bullish Stocks to Trade: CLR, LNG>$40, CAT, MBLY, LRCX, CAR, UNH, AMGN, SLB, CVX, AEM, EA, IBM (earnings), UNP, AMZN, YUM, CHTR,
Bearish Stocks to Trade: rcl, psx
2x Normal Volume: K, MCHP, IONS
Inside days: csco, aal, csx, nem, ual, atvi, fast, cat, cl, gps, wy, unh, dow, slw, gs, bx, nue, twlo, gis, ca, ua, dd, khc, hon, wynn