Today’s Trading Lesson | 7-28-16
How many trading indicators do you have on your charts?
The first two years I traded I think I tried everything available in the Real Tick platform. Eventually it all comes down to price and volume. Virtually every successful trader I know keeps it simple.
We all go through a journey of discovery but everyone comes back to the basics.
- Simple moving averages
- Average true Range
- Draw trend lines
Keep it simple, but consistent and you will find trading decision are easier to make. Can you use something different? Absolutely! Whatever you choose, be consistent. If you jump from strategy to strategy every month you will never have a large enough sample size to know if your plan is working.
If you need some ideas, visit the FREE TRADERS LIBRARY TODAY — >>
On the Tape Today...
$HD continues to struggle to stay over $137 but worth keeping in your daily tracking journal for a breakout. (see chart)
$NKE confirmed change to uptrend last week is a buy today in the $55.50 area.
$SKX needs another day or two to consolidate the gap lower, the sell short below $24 is the trigger.
$GS continues to hold the gap/flag above the $160 level, Continue to look for a buy signal as long as it remains above that level.
$HD 7-28-16 (Click to Enlarge)
U.S. stock futures edge up on earnings optimism, hopes for BOJ action U.S. stock futures pushed modestly higher on
Thursday, supported by earnings optimism ahead of more results and by Federal Reserve comments perceived as dovish. Investors were also cautiously hopeful that the Bank of Japan will announce more easing at the outcome of its two-day meeting, which got underway Thursday.
But on Thursday, market observers were rethinking the Fed language from that meeting. “The FOMC minutes do appear to have struck a dovish tone with investors despite offering a more upbeat assessment of the economy and highlighting the diminishing near-term risks.
This could be helping to lift sentiment ahead of the open today,” said Craig Erlam, senior market analyst with Oanda, in emailed comments.
Also helping was optimism ahead of another big batch of results, on the heels of upbeat results from Facebook Inc. and others late Wednesday.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 7-28-16 | $AMZN Earnings
Apple, Facebook Lead Nasdaq Higher; Dow Turns Up; Fed Leaves Rates Unchanged
The Fed statement at 2 p.m. ET didn’t move the market much, as policymakers kept interest rates unchanged but left the door open for a rate hike at the September meeting.
Other market outperformers included driving-assistance technology firm Mobileye (MBLY). Shares rebounded 4% after crashing 8% Tuesday on earnings, as well as news it’s dissolving its relationship with Tesla (TSLA). Citigroup defended Mobileye Tuesday, saying that Tesla’s business was not material to Mobilieye’s financial results.
Big gainers in the IBD 50 included Edwards Lifesciences (EW). Shares jumped 6%. Late Tuesday, the heart-valve maker reported a strong second-quarter beat and raised its third-quarter and full-year guidance. Edwards is now extended from a 107.69 handle entry of a double-bottom base.
Another Leaderboard name, Facebook (FB), added 1% to 122.67 ahead of its second-quarter earnings report after the close. Volume has dried up in Facebook in recent days as it trades near a 121.18 buy point. The consensus estimate calls for profit of 82 cents a share, up 64% from a year earlier, with sales up 49% to $6.02 billion.Read More — >>
Tape Reading the SPY ETF
$SPY price action remains in the two week trading range. If you aspire to be a professional, it is imperative you understand when the market is obvious and following through. Following through is the key in this discussion.
Yes the market is obvious but it is not offering momentum type price action on the tape. This means your trade management will be more geared towards cash flow.
The smarter trading in the current tape is booking profits, not building positions. Unless you are trading a stock with activity off an earnings release. I can’t tell you the amount of emails I am getting with the subject line [I gave back profits…please help]
If you are doing this it means you are not recognizing the tape. Every day is not the day to be aggressive, some day you simply pay the bills.
Stocks in Play: $AMZN research on finviz.com
$AMZN Earnings Today: What to watch for in Amazon earnings
Beyond Prime Day, analysts will also be looking at Amazon Web Services and other business areas.
Amazon.com Inc. is expected to announce second-quarter earnings on Thursday after the closing bell.
Fresh off of a Prime Day event that the company said was the biggest day ever for the company, Amazon AMZN, +0.83% is expected to report solid results for the quarter. But analysts are looking for takeaways from the earnings announcement that go beyond e-commerce sales.
Amazon shares have an average overweight rating among 44 analysts polled by FactSet. The average price target is $830.63, or 13% above Tuesday’s closing price of $735.59.
See also: Amazon, Wells Fargo join forces to woo student loan borrowers
Here’s what to expect: CONTINUE READING — >>
Amazon.com (AMZN) Web Services May Give Company Earnings a Boost
Amazon.com (AMZN) Web Services makes up half of the company’s profit and is the reason behind Amazon’s growth, RBC Capital Markets analyst Mark Mahaney tells Bloomberg TV.
NEW YORK (TheStreet) — Amazon (AMZN) Web Services (AWS), the company’s cloud business, makes up a maximum 10% of Amazon.com’s total revenue but half of the company’s profits, RBC Capital Markets analyst Mark Mahaney reported on Bloomberg TV’s “Bloomberg GO” Wednesday.
Stocks to Trade 7-28-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: NEM, IONS, AEM, AGN, TWLO, STT
Negative last 20 and 5 trading days | closed 2% lower from the open: mur, trgp, rrc, do, oke, apa, nov, cop
Quarterly Order Flow:
Bullish Stocks to Trade: TWLO, AEM, AMGN (buy a lower open only), CAT, AVGO, BA, HOG>51, LRCX, VMW, CHTR, IBM, HD>136.50, HLF, WDC,
Bearish Stocks to Trade: hes, nov, cop, dri, skx
2x Normal Volume: AAPL, FB, X, LLTC, ADI, TXN, EQR, HES, RLYP, LVLT, AGN, CNC, STT
Inside days: t, gild, txn, yhoo, aal, jd, mdt, lvs, aig, ca, yum, esrx, yum, kors, amzn, twx, adbe, chtr, wynn