Today’s Trading Lesson…
My experience has taught me you need to trade more to make more. Every big trader I know, executes every single trade without hesitation. It’s common to see them with a multiple positions on at once.
The concept of trade more to make more is not theory, it is fact. Fact based on probabilities. The larger the sample size, the faster you allow your probabilities to reach the necessary numbers to achieve a reliable result over time.
New traders hesitate because they guess the outcome. They cherry-pick trades. You should definitely be selective, but you should take every trade.
This is where the concept gets lost in translation.
You should take every trade that matches your strategy, not every idea you see. The reason I bring this up today, is a lot of traders are placing trades with no edge this month. August has offered little to get excited about.
Yes there was opportunity, but not much to trade size or hold for the last penny. It’s mostly a month for cash flow.
Be smart and save your buying power for great opportunities and take every one of them.
On the Tape Today...
$FL positive earnings bounce $NKE and UA too. Look for one more day of follow through. (see chart)
$MCD inside day breakdown with volume leads to a solid trend day. Sell-stop below Friday's low with a $113 target.
$LRCX $94 buy-stop triggers 52 weeks highs and should see a clean move to $97.50.
$SLB inside day and ascending wedges sets up a $84 breakout with a target of $85.50
$FL 8-22-16 (Click to Enlarge)
Dow futures tread water as buyers won’t jump in until Yellen speaks
U.S. stock futures on Monday signaled a muted open, as analysts said the week looks set to be quiet until a closely watched speech by Federal Reserve chief Janet Yellen at the central bank’s summer retreat.
A Friday morning speech by Fed chief Janet Yellen is expected to serve as this week’s main event. She may use her remarks in Jackson Hole, Wyo., to indicate the central bank is ready to raise interest rates as soon as next month.
“The markets currently have March priced in for the next rate hike and if Yellen is seriously determined to move earlier, she must take advantage of Friday’s opportunity to drive that message home,” said Craig Erlam, senior market analyst at Oanda, in a note. “The rest of the week is expected to be rather quiet,” Erlam added.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 8-22-16 | $PFE $MDVN
Stocks In Red, But Nike, Foot Locker, Applied Materials Score Big Wins
Stocks held narrow losses heading into the final hour of trade Friday, with the major market indexes poised to close flat to slightly lower for the week.
On the Dow, Nike (NKE) scored big gains on the heels of Foot Locker’s bullish earnings report.
Steel, gold miners and utilities led the downside in the stock market today. Gold futures dipped nearly 1% to $1,348 an ounce. But farm machinery, semiconductor and apparel stocks outperformed.
Applied Materials (AMAT) gapped up to soar 7% to a new high in rapid turnover on strong quarterly results.
Foot Locker (FL) vaulted 11% in heavy volume to a six-month high after the athletic footwear retailer reported better-than-expected Q2 results.Read More — >>
Tape Reading the SPY ETF
$SPY song remains the same.
The August trading range continues and will be exaggerated this week with Janet Yellen in Jackson Hole.
If you can take anything positive out of this consolidation it’s that you can’t make money short if you’re trading the $SPY or other major ETF”s. The long may be tough but the short is a low probability trade.
The major lesson here is to be patient. Over trading leads to throwing money away when the tape is slow. I know it can be tough because you need to pay the bills, but trading less is better than digging out of an unnecessary hole after Labor Day.
Stocks in Play: $PFE research on finviz.com
$PFE NEWS: Pfizer Is Near $14 Billion Deal For Medivation
Pfizer (PFE) is near a deal to buy Medivation (MDVN) for about $14 billion, following months of takeover speculation for the biotech.
Big Pharma could announce a takeover deal for Medivation as soon as Monday, according to multiple reports. Medivation closed Friday at 67.16, with a market valuation of $11.1 billion.
Pfizer said to be near $14 billion acquisition of Medivation
Pfizer Inc. PFE, -0.60% is closing in on a deal to acquire Medivation Inc. MDVN, +19.23% for about $14 billion, according to multiple reports. The deal may be announced as soon as Monday, according to the Financial Times, which first reported the possible deal.
Pfizer Said to Be Close to $14B Deal for Medivation
Stocks to Trade 8-22-16 | Monday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: DE, FL, URBN, YELP, LYB, TWLO
Negative last 20 and 5 trading days | closed 2% lower from the open: x
Quarterly Order Flow:
Bullish Stocks to Trade: FL, LRCX, LN, BIDU, JWN, BIIB, EA, PXD, TWLO, SWKS, AVGO, CLR, EOG, SM, BABA, UNP, AMGN, CHTR
Bearish Stocks to Trade: mcd, nclh, rcl, fslr, cf
2x Normal Volume: DE, LDOS, FL, RH, ROST
Inside days: csco, wmb, bmy, kmi, ms, gild, nwl, nflx, pg, slb, cog, cvx, m, teva, apc, unp, dhi, ctrp, nov, sti, mur, tsn, dhr, apa, tsla, bbby