Today’s Trading Lesson…
Mentoring advice can be difficult.
You never want to shatter someone’s dreams but you want to be honest. It’s a fine line to walk.
When you have an honest desire to give back, mentoring is an obligation. A responsibility.
It’s common for new traders to ask experienced traders for advice. Often they say no. It’s not for the reason you think.
They say no because you aren’t putting in the time. They refuse because they see you aren’t working hard on your own. Trust me, experienced traders notice if you arrive at 9am and leave at 4pm. Start to come in early, stay late. You will have no problem finding a mentor if you do this. Hard work is the price of admission.
A mentor is not interested in helping someone who is lazy. Show them you are willing to go the extra mile. Someone who takes responsibility for their results.
You can’t improve without this extra effort. I’ve been there. Day trading success will take twice the effort you expect.
On the Tape Today...
$LN and $TWLO both solid momentum plays this week. Both topping tails. Put into your tracking journal for the next long. (see chart)
$GS inside day breakout and trend. $168 next target for a new long. Buy stop above yesterday's high.
$FSLR short sale still in play. Smaller candles imply an increase in volatility is coming. If it trades higher let the long go. The trade is short.
$CRM breakdown with monster volume. Short sale is the trade, but only if it is trading below the open price.
$TWLO 8-16-16 (Click to Enlarge)
U.S. stocks hunt for another record session as dollar tumbles
CPI data ahead | The U.S. market looks set to stumble in its race for another record.
Wall Street stocks’ push for another record session looked set to hit a snag Tuesday, as the dollar came under pressure and investors waited for consumer price data.
Data-heavy day: Consumer prices are due at 8:30 a.m. Eastern Time, along with housing starts and building permits, all covering activity in July. Industrial production and capacity utilization for the same month are due at 9:15 a.m. Eastern.
A fairly busy speaking week for Federal Reserve officials will kick off with Atlanta Fed President Dennis Lockhart, who will speak to the Rotary Club of Knoxville, Tennessee at 12:30 p.m. Eastern.
Stocks to watch: Home Depot Inc. HD, -0.59% Dicks Sporting Goods Inc. DKS, +0.29% and TJX Cos. TJX, -0.12% are all due to report earnings ahead of the bell. Urban Outfitters Inc. URBN, +1.92% and La-Z-Boy Inc. LZB, +0.93% are scheduled to report results after the close.Continue Reading — >>
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 8-16-16 | Buffet adds to $AAPL Stake
Chinese Stocks, Oil Explorers Top Gainers As Major Indexes Finish Higher
Stocks marched higher Monday, boosted in large part by a 1.5% rebound in crude oil futures. Expect the day-to-day movement of equities, however, to continue hinging on the quality of quarterly corporate results.
Among the ones to watch this week are China Lodging Group (HTHT) and Momo (MOMO) on Tuesday; Chinese online game giant NetEase (NTES) on Wednesday; and semiconductor equipment giant Applied Materials (AMAT) on Thursday.
Warren Buffett increases stake in Apple
Warren Buffett’s firm is doubling down on Apple.
Berkshire Hathway (BRKA), the conglomerate run by Buffett, disclosed in a regulatory filing on Monday that it had 15.2 million shares of Apple as of the end of June, or just under $1.5 billion worth.
That marks a 55% increase from the 9.8 million shares Berkshire had in the first quarter. Berkshire first disclosed purchasing $1 billion worth of Apple stock in a May filing.
Tape Reading the SPY ETF
$SPY price action- another day, another indecision candlestick.
If the $SPY is net positive and above yesterday’s high, go for it. The first 90 minutes yesterday was a solid long. A nice inside candlestick breakout on the 5 minute chart at 10:05. The problem? It only yielded .40!
Hardly a party like 1999…
It’s hard to say indecision at all-time highs but there is clearly no conviction up here. Every futures trader I know is sitting on their hands. “No reason to accept risk,” is what I am hearing.
A key to successful trading is not losing money. The best plays here are stock specific. Stock to earnings plays until we see volume in the indices. If big money isn’t aggressive, why in the world would you be?
Stocks in Play: $AAPL research on finviz.com
$AAPL NEWS: Why Warren Buffett is grabbing Apple stock while other big names run away
Opinion: Berkshire’s move signals Apple is officially a value stock
Warren Buffett famously avoided technology stocks for years with Berkshire Hathaway Inc., but has now amassed a large stake in Apple Inc.
Apple Inc. is now officially a value stock.
On Monday, the investor profile of Apple AAPL, +0.28% switched dramatically with news that Berkshire Hathaway Inc.’s BRK.B, +0.04% Warren Buffett loaded up on the company’s stock while other investors like Scion Asset Management, the second hedge fund run by Michael Burry, sold off.
A few other institutional investment funds also reported changes in their holdings via Securities and Exchange Commission filings on Monday, showing a new kind of Apple investor: One that prefers slower growth companies with big piles of cash and dividend payouts instead of high-growth (and higher risk) investments.
Stocks to Trade 8-16-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: TWLO, SM, VRX, LN, WYNN, JUNO, JWN, BIDU, SWKS, NXPI, TRGP
Negative last 20 and 5 trading days | closed 2% lower from the open: duk
Quarterly Order Flow:
Bullish Stocks to Trade: TWLO, SM>$35, LN, $WYNN>$104.50, JWN, NXPI, KSS>$46, AVGO, CLR, PXD, AMGN, CELG, SLB, TIF, LMT, CHTR, DVN, NFX, IBM, BIIB, COST, AMZN, AEM , EOG, FB, BABA
Bearish Stocks to Trade: fslr, trip, prgo
2x Normal Volume: TWLO, LMT, BABA
Inside days: x, vz, endp, dow, slw, dis, rai, azn, jci, nfx, ibm, apa, apc, dd, lly, fslr, wy, nue, oke, ip, tsn , hrb, tmus, cag, mon, aet