Today’s Trading Lesson…
A common question during the coaching calls is “How can I speed up my learning curve?”
Great question. The answer is trade more.
I always get a reply like, “But I don’t want to over trade…” Trust me, I don’t want you to over trade either. But there is a difference between over trading, and taking 100% of the trades that match your strategy.
Taking those trades without hesitating.
Trade more, make more. The biggest traders I know always have multiple positions on. They have learned a simple truth — WE HAVE NO IDEA WHICH TRADES WILL MAKE MONEY — SO YOU MUST TAKE EVERY TRADE.
Make sure you fully understand this concept – not every trade, but every trade that matches your strategy.
Seven figure traders don’t have time to guess or predict, so they start trades and wait for feedback. Feedback in price action.
They dump the losers, and add to the winners.
Let this sink in for a few days. Get one hundred shares of five stocks (that match your criteria), instead of one trade with five hundred shares.
Managing the five positions is easier and less stressful, than one.
On the Tape Today...
$VLO breaks long-term down trend with head and shoulders bottom. Swing trader long to $56 (see chart)
$APA short sale today off momentum day lower. Initial target is $46
$WDC short sale below $43 with minor support @ $41.75. Plenty of room to go after that.
$TSLA continues to quietly consolidate. Keep it on your radar. Needs to bust out of the $220-230 range.
$VLO 8-11-16 (Click to Enlarge)
U.S. stock futures struggle to push higher as oil slump keeps lid on rally
Valeant off more than 10% premarket | Jobless Claims Today
Oil blues: “U.S. markets have been more responsive to the movements in oil over the last couple of weeks, something I expect to continue in the coming weeks if it falls back below $40,” said Craig Erlam, senior market analyst at Oanda, in emailed comments.
“It’s heading lower again this morning, which could weigh on indices after the open, but so far they appear to be holding up,” he added
Economic news: Weekly jobless claims are due at 8:30 a.m. Eastern Time. They are forecast to show a drop to 265,000 for the week ended August 6, down from 269,000 the previous week.
Movers and shakers: Shares of Valeant Pharmaceuticals International Inc. VRX, -9.96% tumbled 11% ahead of the bell after news of a federal investigation into whether the drugmaker defrauded insurers.
Shake Shack Inc. SHAK, -1.71% tanked 10% ahead of the open after the burger chain late Wednesday posted weak sales growth in the second quarter.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 8-11-16 | $KSS Earnings
Stocks End Lower; Shake Shack Crushed After The Close
The major averages fell modestly Wednesday as energy stocks followed oil prices lower. Exxon Mobil (XOM) and Chevron (CVX) paced losses on the Dow.
Exxon Mobil lost nearly 2% and Chevron declined 1% after oil prices sank below $42 a barrel due to an unexpected increase in U.S. crude stockpiles. Gold miners and apparel stocks bucked the declines.
Ralph Lauren (RL) popped more than 8% after a better-than-expected quarterly earnings report. Hanesbrands (HBI) rose 3%.
After the close, shares of burger chain Shake Shack (SHAK) plunged 9% following its Q2 results
$KSS reports after the close today.Read More — >>
Tape Reading the SPY ETF
$SPY selling off the open was persistent, but be careful with the short ideas here.
Don’t get cute because you’re bored. That’s a recipe for disaster. Yes, I know, you already have the email ready for me…”But Pete, the $SPY traded lower today and I let it go and I missed all of those profits…”
No you didn’t. You traded smart. Good traders, smart traders don’t short-sell near all-time highs.
Stocks in Play: $KSS research on finviz.com
$KSS Earnings NEWS: What to Look for When Kohl’s (KSS) Reports Q2 Earnings
NEW YORK (TheStreet) — Kohl’s (KSS) is scheduled to post its 2016 second quarter results before Thursday’s opening bell.
Analysts are modeling that earnings and revenue will decline year-over-year.
Wall Street is expecting the Menomonee Falls, WI-based department store to post earnings of $1.04 per share on revenue of $4.16 billion.
During the same quarter a year ago, Kohl’s earned $1.07 per share on revenue of $4.27 billion.
Stifel maintained its $45 price target and “buy” rating on the stock in a recent note, the Fly reported.
But after visiting five Kohl’s stores, the firm said it is concerned about the company’s inventories and earnings view. The inventories were bigger “and of poorer quality” than Stifel had expected.
Better Weather May Have Helped Kohl’s In Q2
Jefferies’ Daniel Binder mentioned that while the department store industries continues to be under pressure, various data sets and checks suggest that Kohl’s Corporation KSS is faring better than in Q1 due to better weather.
Binder maintained a Buy rating on the company, with a price target of $47.
Q2 Better Than Q1
“Mgmt’s focus on new brands, private label relaunches, inventory reduction and faster lead times should yield better results as the year progresses,” the analyst stated. READ MORE — >>
Stocks to Trade 8-11-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: ENDP
Negative last 20 and 5 trading days | closed 2% lower from the open: fslr, acad, wdc, do, wsm, apa, met, dish, cf, mbly, coh, rrc, nclh
Quarterly Order Flow:
Bullish Stocks to Trade: TWLO, AEM, COST, AVGO, PCD, LMT, IBM, BLL, AMZN, HOG, MPC, FB, AMGN, CHTR, EOG, CELG, SLB, NFX, BIIB
Bearish Stocks to Trade: prgo, fslr. bmy, gild, trip
2x Normal Volume: X, DIS, YELP, FSLR, PRGO, LMT, KSS, KORS, SM, LRCX, ACAD
Inside days: ge, pfe, endp, fb, atvi, gps, tgt, vod, bby, mcd, mdt, dow, twlo, ibm, lgf, pgr, tsn, khc, mon, anf,