Stock Trading Today 8-19-16 | $CMG

Today’s Trading Lesson…

Jesse Livermore and Reading the Tape

Tape reading is not as popular as it was in the old days. Computers have made us lazy traders.

When I say the “old days,” I am referring to before 2007.

Some smart, savvy traders however, have adapted and are skillfully implementing tape reading in a much different way today. Chart reading is an element of tape reading, but they are not the same.

Our goal is to elevate from chart reader to tape reader. Learn how Livermore did it.

Study this Two-Part Series on Tape Reading — >> Part One | Part Two

On the Tape Today...

$USO textbook Saturation Point. Sell the higher open. Look at that exhaustion volume! (see chart)

$LB solid breakout with volume. Initial profit target on a buy stop above yesterday's high is $80.25.

$MO 3 melted candles and inside day. Looking for a breakdown below $66 today with $65 target.

$VLO ascending wedge. Looking for a breakout. Minor resistance at $56- ultimate target is $62.

$USO 8-19-16 (Click to Enlarge)

stock trading today 8-19-16

$USO 8-19-16

U.S. stocks poised for losses as Fed rate-hike debate rages on

Applied Materials rallies premarket after earnings.

Wall Street was set for a weak session on Friday, capping off a volatile trading week dominated by chatter about whether the Federal Reserve will raise interest rates as early as September.

Earlier this week New York Fed President William Dudley also hinted a September move was possible, while Atlanta Fed boss Dennis Lockhart talked about “at least one” more increase this year.

Minutes from the Fed’s July meeting out on Wednesday, however, showed an almost even split between supporters of another rate hike in the near-term and others who would wait for more confidence that inflation was stirring.

Read More — >>

Stock Market Today: Heatmap of the S&P 500

stock trading today 8-19-16

$SPY Heatmap 8-19-16

Stock Trading Today 8-19-16 | $CMG Remains Bearish

Stocks Reverse Higher; Wal-Mart Leads Dow, But Caterpillar Lags

Stocks reversed from small losses to finish with small gains Thursday as crude oil prices surged and Wal-Mart (WMT) gave the Dow a lift.

Fiber optic, oil and solar stocks were among the day’s biggest gainers in the stock market today, as West Texas intermediate crude prices surged 3% to above $48 a barrel. But office supply retailers, newspapers and dairy products stocks lagged.

Wal-Mart pared an early advance to less than 2% but still ended the session with the Dow’s top advance. Shares hit a 52-week high intraday. The world’s biggest brick-and-mortar retailer reported Q2 results that topped views and raised its full-year earnings outlook.

But Caterpillar (CAT) fell more than 1% after the heavy equipment maker reported disappointing retail machine sales for the three-month rolling period ended in July.

Why Chipotle ($CMG) Failed to Hold On to Its Gains after 2Q16 Results Although Chipotle Mexican Grill’s (CMG) 2Q16 revenue and EPS (earnings per share) were lower than expected, its stock rose 5.7% after the announcement of 2Q16 results on July 21, 2016.

The announcement of improved traffic and SSSG (same-store sales growth) in the first two weeks of July 2016 increased investors’ confidence, which led to a rise in Chipotle’s share price.


Tape Reading the SPY ETF

$SPY closed on the high after reversing at noon. 

This price action highlights the reason I tell coaching clients to follow the order flow. Whether you are scalping or position trading there is no solid reason the fight the trend.

Eliminate one side of the market and trading becomes 200x easier. If price action begins to retrace during bullish order flow, find weak stocks to short – which you will most likely need today.

stock trading today 8-19-16

$SPY 8-19-16

Stocks in Play: $CMG research on $CMG NEWS: Chipotle’s Food-Safety Crisis May Be Over But the Stock Is Still Way Down Maybe Chipotle just needs to grow up. Before what’s obliquely referred to as the food-safety issues — the norovirus, E. coli and salmonella contaminations that sickened about 500 diners between July 2015 and December — Chipotle Mexican Grill Inc. was a superstar that flouted some big-company norms. The investor relations team, for example, consisted of a single employee, working the IR job half-time to boot, and ad spending was sparing. But no problem, revenue grew an average 22 percent annually, and the stock kept climbing. Then came the outbreaks, capped off by the indictment of one of the top four executives on charges he bought cocaine from a New York drug ring that was busted earlier this summer. CONTINUE READING — >>
stock trading today 8-19-16

$CMG 8-19-16

Stocks to Trade 8-19-16 | Friday Edition

Short-Term Trading Momentum:

Positive the last 20 and 5 trading days | closed 2% higher from the open: WMB, SM, MUR, TRGP, OKE, DVN, HAL, APC, NOV, YELP, CIG, CAR

Negative last 20 and 5 trading days | closed 2% lower from the open: 

Quarterly Order Flow:


Bearish Stocks to Trade: cf, rcl, de, gild, mcd, bmy, fslr

2x Normal Volume: VRX, HOG, LDOS, HAIN, LB

Inside days: bmy, hlt, fb, dal, nvda, low, crm, sbux, bby,vlo, usb, wfm, luv, mo, mdt, tjx, pypl, kss, ccl, mcd, rai, ma, pm, axp, lmt, jwn, vof, stx, ua, coh, esrx, agn, mon, bbby, amzn

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