Today’s Trading Lesson…
“Becoming a great trader is a marathon not a sprint.” — Abe Cohen
Since I started coaching traders in 2003, I have witnessed traders wash out in a month, and others become professionals. The traders who become successful and profitable, pursue a different goal than those who struggle and fail.
They chased the long-term goal of “trader,” not the short-term goal of “money-maker.” It is incredibly challenging to build a long-term foundation if you are constantly pulling up the roots. To trade for money from the beginning is foolish, you are not learning. Your focus is wrong.
Should you desire to make money? Yes, of course but it should be a method to interpret feedback. The worst thing a new trader can do is make money quickly. This newbie will forever think trading is easy and they simply need to recapture that initial magic.
To last in this business, seek first to learn. Learn what doesn’t work. Learn the difference between a good trade and a profitable trade (Yes they can be the same but they are different).
Learn to narrow your focus. When we begin we are bright-eyed at the possibilities and we want to trade everything, every market condition. It’s a mistake. We don’t have enough experience or capital to try everything.
Try one strategy, one entry signal and a small list of stocks. and then trade. Trade with 100 shares, but trade.
Do not increase your shares until you turn a profit. If you don’t turn a profit inside of 3 months, make one change. Maybe trade long only. Maybe trade one sector instead of a mixed list of stocks. Maybe you don’t trade the afternoons. But only make one change.
Then trade. You need to trade to become a trader. Stop reading a million charts. If you know basic technical analysis, you know enough. Now you need to learn to read order flow, and you need to learn how to manage a trade.
Your goal here, the first 3-5 months is to break-even and learn. Make your skills pay the tuition. If you heed this advice, your next step is moving up share size, and net profits on those same, proven ideas.
On the Tape Today...
** Plenty of long, momentum plays today, but difficult to call another day higher. The odds don't favor it.
$COF bear flag, weak close and near inside day makes for a sell-short today. (see chart)
$FDX gap fill, momentum sell short with a target in the $152 area.
$CF relative weakness last week. Did not bounce with the market and a nice pause to short.
$UAL, $ALK bear flag short sale opportunities.
$COF 7-5-16 (Click to Enlarge)
Dow futures slump 100 points as Brexit reality ‘sets in’
U.S. stock futures fell on Tuesday, as investors returned from the long holiday weekend to more Brexit-fueled uncertainty and opted for caution ahead of the closely watched jobs report on Friday.
U.S. markets were closed for normal trade on Monday for Fourth of July, but stock futures still traded and logged small gains. Those moves came after both the Dow average DJIA, +0.11% and S&P 500 index SPX, +0.19% last week scored their best week this year, clawing back some of the steep losses logged in the wake of the U.K.’s vote to leave the European Union.
Better-than-expected U.S. data and hopes that central banks will step up to calm markets were seen as helping boost stocks last week.
“Stock markets have snapped a 5-day liquidity driven rally [on Tuesday] as investors began to look beyond expectations of more cheap money to the reason why central banks may be forced to ease further,” analysts at Rabobank said in a note.Continue Reading
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 7-5-16 | $MBLY
What Brexit? Stocks Score Big Weekly Gains; Will Apple Break Resistance?
Stocks closed off intraday highs but extended their win streak to four ahead of the July 4 holiday, as the Nasdaq led amid gains from Apple (AAPL), Netflix (NFLX) and Tesla (TSLA).
The Nasdaq rose nearly 0.5%, the S&P 500 climbed 0.2%, and the Dow ticked up 0.1%. Volume was lighter across the board vs. Thursday, according to preliminary figures. All three indexes scored weekly gains of more than 3% apiece, despite an ugly start to the week on continued fallout from Brexit.
Gold miners, steel and oil stocks led the upside in today’s stock market action. Banks, food and managed care stocks underperformed.
Apple climbed 0.4%, nearly regaining its 50-day moving average, a potential level of resistance. It’s closed below the support line since late April. The iPhone maker is in talks to buy Jay Z’s music streaming service Tidal, according to the Wall Street Journal. Tidal has about 3 million to 4 million paid subscribers and features exclusive content from certain artists.
Netflix gapped up and rose 6% in fast turnover, reclaiming its 50-day line. Canaccord Genuity began covering the internet TV network Friday with a buy recommendation and a 120 price target. Netflix is expected to enter China soon.Continue Reading
Stocks in Play: $MBLY research on finviz.com
$MBLY NEWS: Mobileye, Intel Team Up With BMW For Self-Driving Electric Car
The news comes as Tesla Motors (TSLA) late Thursday confirmed that the National Highway Traffic Safety Administration has opened a preliminary evaluation into the performance of the Autopilot feature in its Model S, following a fatal crash in Florida. Mobileye is a leading provider of driver assistance technology and a Tesla supplier.
Tesla confirmed its Autopilot mode was active during the time of the accident.Read More
Why Mobileye (MBLY) Stock Is Advancing Today (July 1, 2016 article)
NEW YORK (TheStreet) — Shares of Mobileye (MBLY) are gaining 1.95% to $47.03 on heavy trading volume late Friday afternoon after the company said it is working with BMW and Intel (INTC) to make self-driving vehicles by 2021 following speculation yesterday.
“Mobileye is proud to contribute our expertise in sensing, localization, and driver policy to enable fully autonomous driving in this cooperation,” the Jerusalem-based company said in a statement this morning. Intel said it will provide several chips ranging from its smaller “Atom” chips to its “Xeon” infrastructure microprocessors to handle the complex workloads required for autonomous cars in urban environments, Barron’s noted.Read More — >>
Stocks to Trade 7-5-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: SLCA, IONS, MUR, RRC, LNG, SRPT, APC, DVN, MPC, MBLY, HOG
Negative last 20 and 5 trading days | closed 2% lower from the open: mon
Quarterly Order Flow:
Bullish Stocks to Trade: HOG, AEM, DVN, SLCA, MUR, MBLY, CHTR, CLR, LULU, CNC, UNH,
Bearish Stocks to Trade: swks, cof, pnc, nxpi, gs, stt, lnc, aapl, alk, ual,
2x Normal Volume: HOG, LGF, MA, CTSH, MBLY, DRI
Inside days: c, wfc, gm, fb, jpm, v, ma, mbly, wmt, qcom, cvx, vlo, stx, txn, cf, wdc, tea, dd, gsk, de, swks