Today’s Trading Lesson | Cash is a Position
Struggling to find awesome trading ideas for today’s game plan….
What would that mean to you? For me it means be patient. Today could be a great lesson for you. We discuss professional trading often in the coaching calls. It means accept risk, only when the potential reward is in your favor.
I don’t see that today. I see trading ranges or failed breakouts in bullish stocks. My style is reading quarterly order flow, you may have a different map of the market but I plan to be patient today.
From what I see at 7 am, I won’t be in a rush to place trades today.
As my old mentor used to say, “Pete, if it’s hard to find, it’s not there…”
On the Tape Today...
$DG head and shoulders top /neckline break. Short sale target is $85.75. (see chart)
$USO rally has reached a saturation point. A higher open should be for profit taking or an aggressive sell short. (Crude inventories at 10:30 am)
$ATVI confirmed change of trend lower with a close below $39.50 and solid volume. Sell stop below yesterday's low with a target of $35.75.
$YUM continues to get rejected @ $90 with multiple topping tails. Although bullish order flow, place a buy stop @ $89.75 for a tier one and don't get caught up in the back-and-forth.
$DG 8-17-16 (Click to Enlarge)
U.S. stock futures pull back as Fed minutes eyed for rate-hike hints
Cisco reportedly plans to cut 14,000 jobs
Wall Street was poised for a downbeat trading day on Wednesday, with investors opting for caution ahead of Federal Reserve minutes that could reveal if a rate hike is still on the table this year.
All about the Fed: However, hints that an increase in interest rates is coming took stocks off their all-time highs. William Dudley, president of the New York Fed, said the time for another hike is approaching and a rate increase as soon as September is a possibility.
Meanwhile, Atlanta Fed President Dennis Lockhart said he has confidence in the outlook for the U.S. economy and, as a result, wouldn’t rule out “at least one” interest rate hike this year.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 8-17-16 | FOMC Minutes Today
Stocks Fall, Oil Rises; Dick’s Sporting Goods A Bright Spot
Sellers came into the stock market Tuesday, and there was some conviction behind the selling, as U.S. indexes basically mirrored the performance of European stock indexes.
Dick’s Sporting Goods (DKS) was an earnings winner, but retail leaders Home Depot (HD) and TJX (TJX) succumbed to selling. The Dow Jones industrial average, weighed down by weakness in Johnson & Johnson (JNJ) and Microsoft (MSFT).
Volume on the NYSE and Nasdaq was tracking slightly higher than Monday’s levels. At the New York Mercantile Exchange, WTI crude oil for September delivery rose for the fourth straight session to settle at $46.58 a barrel, up 1.8%.
The 10-year Treasury yield added 2 basis points to 1.57%. Wall Street got a barrage of economic data earlier in the session. Consumer prices were flat, housing starts came in tad better than expected and industrial production notched its best monthly gain since November 2014.Read More — >>
Tape Reading the SPY ETF
$SPY looking at a possible “island top” with a close on the lows.
We can’t make too much out of small data but the selling volume picked up a little. The $SPY could see one more day of selling. Solid support comes in at the $217 area.
The correct trade is still to the long side but force price action to be positive on the hourly charts if you’re day trading. I have committed the cardinal sin of buying a bullish stock without confirmation. Learn from my mistake and be sure you have intra day buyers.
Stocks in Play: $HD research on finviz.com
$HD NEWS: Home Depot Earnings Solid On Housing ‘Tailwind’; Stock Flirts With Buy Point
Second-quarter revenue for Home Depot (HD) was a bit lighter than analysts expected, but earnings edged views by a penny, the home improvement retailer said Tuesday.
Seen as a bellwether for housing and the economy, Home Depot reported 6.6% higher revenue at $26.47 billion — a shade below the $26.49 billion analyst view — and a 15.8% rise in earnings per share to $1.97. Comparable store sales were up 4.7% and comp sales for U.S. stores 5.4%.
“We had a solid quarter, achieving the highest quarterly sales and net earnings results in company history as housing continues to be a tailwind for our business,” President and Chief Executive Craig Menear said in a prepared statement.
Record Earnings for Home Depot Inc as Profitability Jumps
The retailer sees a long runway for growth ahead as the housing market continues to recover.
Home Depot (NYSE:HD) posted earnings results this week that included double-digit profit gains powered by a steady rebound in the housing market.
The retailer boosted its earnings outlook for the second straight quarter, too — while affirming its full-year sales growth forecast.
Stocks to Trade 8-17-16 | Wednesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: LDOS, AAL, MPC, LNG
Negative last 20 and 5 trading days | closed 2% lower from the open: tjx, x, dg, mbly
Quarterly Order Flow:
Bullish Stocks to Trade: DKS, LN, TWLO, DVN, KSS, AEM, BIIB, PXD, EOG, BABA, JWN, AMZN, CHTR, AMGN, AVGO
Bearish Stocks to Trade: fslr, bmy, nclh, cf
2x Normal Volume: TJX, TWLO, DKS, PE, LDOS, LMT, NVO
Inside days: twtr, twlo, nvda, v, luv, gps, dow, ual, wba, wynn, ea, bby, coh, axp, bidu, esrx, mar, de, dd, nue, psx, kmx,