Today’s Trading Lesson…
What is Scalping?
Back in the ancient days of 2001, trading for a living was scalping for a teenie. Buy on the bid at 20, sell on the offer at 20 1/16.
You earned $62.50 minus commissions, which at that time were $50 per side! Today’s video is a flashback to the good old days.
The trading principles are the same, but the application of the strategy has evolved.
On the Tape Today...
$GS and other financials showed a bid yesterday. I like them short but profit potential has diminished (see chart)
$UNH new 52 week highs.Keep it on the radar, not overbought like plenty of other stocks today.
$VLO short sale still has room to go down to the $45 area.
$TSLA almost 2 inside days, look for the contraction in price to lead to a nice trend day.
$GS 7-7-16 (Click to Enlarge)
U.S. stock futures waver as focus turns from Brexit to jobs report
Wall Street was set for moderate gains on Thursday, with investors shaking off Brexit fears and instead turning their attention to a key U.S. jobs report out on Friday.
A rise in oil prices also helped propel a positive trading mood premarket after data showed a drop in crude stockpiles.
“The cautious tone from the FOMC minutes on Wednesday may be giving investors a lift today,” Craig Erlam, senior market analyst at Oanda, said in a note.
“The Brexit vote alone is likely to deter [the Fed] from raising rates until at least the end of the year as they wait to see what the knock-on effects will be, both from an economic and financial markets perspective,” he added.
The risk-on trading mood was broadly reflected in financial markets on Thursday, with European stocks SXXP, +1.61% the pound GBPUSD, +0.7037% and 10-year U.S. Treasury yields TMUBMUSD10Y, +1.10% moving higher.
Oil boost: Oil prices also rose, building on a gain from Wednesday, after data from American Petroleum Institute showed crude supplies fell 6.7 million barrels for the week ended July 1. Analysts had forecast a 2.6 million-barrel decline in stockpilesContinue Reading — >>
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 7-7-16 | $FB Soars
Stocks Reverse Higher; Facebook Jumps; Fed Still In Holding Pattern e
Major averages reversed higher after a soft start Wednesday, as the release of the minutes from the mid-June Federal Reserve meeting came and went without much fanfare.
Biotechs like Celgene (CELG) and Incyte (INCY) buoyed the Nasdaq 100. Facebook (FB) also outperformed. Facebook rose 2.4% to 116.70, closing above its 50-day line for the first time since June 10.
Dow leaders included Merck (MRK), Home Depot (HD) and Cisco Systems (CSCO). Merck rose 2%, Home Depot 1.7% and Cisco 1.4%.
After touching an intraday low of $45.92 a barrel, benchmark West Texas Intermediate crude oil added nearly 2% to $47.43 a barrel. The 10-year Treasury yield was mostly unchanged, around 1.37%.
The minutes from the June 15 Fed meeting were released at 2 p.m. ET. Before the Brexit vote, the Fed had signaled a couple of rate hikes before the end of the year, but that all changed after the U.K. decided to exit the European Union. Currently, futures traders see little chance of a rate hike this year.Read More — >>
Tape Reading the SPY ETF
$SPY bullish engulfing candle is impressive. A solid one day of trading, but let’s not get too excited. I am neutral on the market at these levels, and with good reason-the $212-212.50 is solid resistance.
The bearish underlying tone on the market is ominous, for the bears not the bulls. It would seem the collective conscious of the market is not ready to roll over yet.
Stocks in Play: $FB research on finviz.com
$FB NEWS: Facebook’s Stock Split History Is About to Change Forever
One thing that many investors look for in a winning stock is whether a company has chosen to do a stock split. Even though a split has no economic impact on the value of a company, investors see it as a sign of strong future prospects.
Until now, Facebook (NASDAQ:FB) hasn’t been able to muster a stock split history, and immediately after its initial public offering, its shares lost a substantial amount of ground before bouncing back. However, Facebook’s recovery has been convincing to long-term investors, and the social media giant is now planning to do its first stock split.
The nature of that split will also involve some unusual attributes that make it different from what investors are used to seeing.Read More — >>
Is Facebook Quadrupling Its Austin Office Space?
Facebook could be in for an 81,000-square-foot-addition to its 300 W 6th Street offices in Austin, TX, according to building permit and contractor research firm BuildZoom.
Recent city of Austin building permits for Facebook’s 10th floor space at the West 6th-Street high-rise show significant remodeling, as do permit records for the floor below and the two floors above, which, according to BuildZoom, will increase the social media giant’s footprint four-fold to approximately 108,000 square feet.
Since early 2016, the Austin building department has issued 24 permits worth $11.2 million for floors nine through 12, as well as a $4.9 million interior renovation permit to create a food service facility for employees only.Read More on Forbes – >
Stocks to Trade 7-7-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: NUE, SRPT, APC, KSS, IONS, ABBV, CAH, SCTY, LEN, RIO
Negative last 20 and 5 trading days | closed 2% lower from the open: [NOTHING HERE TODAY]
Quarterly Order Flow:
Bullish Stocks to Trade: AEM, LULU AMZN, EA> 77.50, CVX, DLR, UNH, CHTR, PM > $102.50, DLTR
Bearish Stocks to Trade: vlo, psx, ma, alk,
2x Normal Volume: WBA, MA, DHR, KSS, HOG, GIS, VTR, HFC
Inside days: nflx, wmb, jnj, pg, hal, mo, hbi, lng, oxy, rrc, mbly, ua, etp, cl, apa