Today’s Trading Lesson…
Dear New Trader,
I wanted to take my time answering your question because it deserves a good reply. First let me say that trading for a living, for extra money, whatever your goal- is possible.
With my own eyes I have witnessed too much success to believe otherwise. So if that’s the case, why is the rate of failure higher than the rate of success? The first reason is a lack of respect for the task at hand.
Chart reading is not trading, the same as passing a written exam, isn’t understanding how to drive. If you can begin, respecting the task, that’s a good place to start.
Most people see a much further advanced version of themselves in the mirror ,with no results to back it up. Start small and stay small until results tell you it’s ok to get bigger.
Earn at least 3 months’ worth of net profits. Too many make the mistake of trading bigger because they had a good day or week. Trading is a business, don’t rent a 3,000 square foot office after a good week.
Keep the one you have with your one desk.
Learn to read the tape. This means the big money is doing something obvious, and there is room to go. More money is lost on bored trades than you can imagine.
Never trade unless your edge is there.Continue Reading — >>
On the Tape Today...
$PM tests the $102.50 breakout again. Worth keeping on your radar.. (see chart)
$DPS new 52 week highs. Must be above $92.50 for a new long to be valid.
$NFLX strong volume yesterday on an otherwise neutral day on the tape. $102.75 swing trade target.
$CF short sale below $23.50. Ultimate target of $19.50. May take a few days.
$PM 7-6-16 (Click to Enlarge)
Dow futures slide almost 100 points as Brexit fears keep nagging
The risk-off modes continues: Yields drop, stocks stumble, gold rallies
Wall Street was set for another downbeat trading day on Wednesday, as Brexit-related uncertainties continued to spook the market and investors stayed on the sidelines ahead of Federal Reserve minutes.
“Anxiety over the impact of Brexit and its impact on global growth is once more plaguing the mind-set of traders as a safe haven preference is playing out across asset classes,” Richard Perry, market analyst at Hantec Markets, said in a note.
Economic news: Investors will hear the latest from the Fed on Wednesday when the minutes from its meeting on June 14-15 come out at 2 p.m. Eastern Time. The minutes are expected to shed light on how concerned the central bank was about the U.S. economy in the wake of the lackluster May jobs report and give an indication of how dovish it’ll be at coming meetings.Read More — >>
Gold races to 28-month high, oil pressured as Brexit fears return
Gold rallied to its highest since 2014 on Wednesday and oil struggled to recover from deep losses, as renewed fears over the impact of Britain’s exit from the European Union pushed investors toward safe havens.
Risk aversion gripped markets – Asian stocks tumbled and sterling plumbed a 31-year low – amid worries global efforts to boost liquidity may not be enough to cushion the impact of Brexit. Copper moved away from a two-month high and Chinese commodities were sold off, led by agriculture and iron ore.
Concerns that financial and political instability in Italy could lead to even more chaos in Europe spooked investors further.
“The market is beginning to focus on the wider euro zone risk,” said Ric Spooner, chief market analyst at CMC Markets in Sydney.
Underlining strong appetite for gold, seen as a safe-haven during economic uncertainties, open interest in Comex futures and holdings in the top gold-backed exchange-traded fund rose to multi-year highs.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 7-6-16 | $MS Slides
Stocks Cut Losses: Banks Bashed, Harley Davidson Towed
The Nasdaq was down 0.7%, the S&P 500 0.6%, and the Dow Jones industrial average 0.5%. Volume was tracking higher on the NYSE and lower on the Nasdaq, compared to the previous session. Losers led winners by a 3-to-2 ratio on both the NYSE and Nasdaq.
Financials were broadly lower, in particular the big banks. Those stocks were among the most battered about a week ago, when the shock of the Brexit vote first hit the markets. The European Central Bank is weighing state aid for eurozone banks, reports said Tuesday.
Bank of New York Mellon (BK) and U.S. Bancorp were down more than 2% apiece, while Morgan Stanley lost more than 3%.
Energy, transportation and retail were other sectors at the bottom of the day’s performance list.
Harley Davidson (HOG) slid 11%, retracing much of a 20% surge Friday, when the stock soared on buyout talk. But an analyst doused those reports, financial media sites saidContinue Reading…
Tape Reading the SPY ETF
$SPY moving averages- all key moving averages are sideways. The BREXIT momentum trade has settled, and the FOMC minutes are this afternoon. A perfect storm of neutrality. The market needs to tip it’s hand again before we can make a call on the major indices again.
There are plenty of stock specific ideas in the banks and gold.
Stocks in Play: $MS research on finviz.com
$MS NEWS: Morgan Stanley Sees Further Potential U.K. Property Fund Stress
U.K. property funds could come under further stress after a surge in redemptions following the country’s vote to leave the European Union caused three asset managers freeze their holdings, Morgan Stanley said in a note to clients on Tuesday.
Fund suspensions “are designed as circuit-breakers, but the sentiment generated can still drive a negative feedback loop, in our view, similar to that seen during the last financial crisis,” analysts including Anil Sharma wrote.
M&G Investments and Aviva Investors followed Standard Life Investments in halting redemptions from commercial-property funds that manage 9.1 billion pounds ($12 billion) as the currency fell to a 31-year low and investors pulled out their money.Read More — >>
Stocks to Trade 7-6-16 | Wednesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: MDVN, DLR, NVDA
Negative last 20 and 5 trading days | closed 2% lower from the open: cbg, lgf, rrc, vlo, voya
Quarterly Order Flow:
Bullish Stocks to Trade: MDVN, DLR, DLTR, PM, UNH, DG, CHTR, AEM, LULU, MBLY
Bearish Stocks to Trade: lbtya, swks, lnc, kmx, tif, cof, ual, rcl, gs, ms,
2x Normal Volume: DHR, HOG, CBG, LGF, NFLX
Inside days: hog, abt, emc, ebay, gild, mpc, mcd, tsla, wfm, peg, celg, ups, yum, hrb, amgn, hcn