Today’s Trading Lesson | Successful Day Trading
Successful day traders specialize and refine the use of one or two trading techniques and become experts in their execution.
Focusing on one or two strategies will bring repeated success. Every time someone brings out a new strategy, we run to it, hoping for the Holy Grail.
Well, I have not found any Holy Grails in my day, but I have identified a number of tactics that bring repeated success.
Knowing how to execute a particular trading strategy and being able to find the stocks that are ready to move when you want to trade is the most difficult situation facing most day traders.
On the Tape Today...
$HLF is in play as Carl Icahn keeps talking. If you're a day trader who can make fast decisions, it's worth a look for the volatility. Swing traders stay away (see chart)
$AAPL bull flag remains solid with multiple melted candlesticks. $106 is solid support to bid.
$STX breakout with volume gives us a "fuel' candle. Minor resistance at $33.75, target is $36.
$DAL descending wedge triggers a sell short below $36 with a target to cover at $34.
$HLF 8-29-16 (Click to Enlarge)
U.S. stocks face uncertain day as investors adjust to possibility of Fed hikes
Stock futures struggled for traction on Monday after last week’s speech by Federal Reserve Chairwoman Janet Yellen revived expectations that the central bank could raise interest rates by the end of this year.
Those comments pushed the Dow industrials and the S&P 500 lower on Friday, though the Nasdaq finished higher. Investors also paid close attention to an interview that same day with Fed Vice Chairman Stanley Fischer who told CNBC in an interview that Yellen’s speech was “consistent” with possibly two rate hikes this year.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 8-29-16
Stocks End Mixed; Nautilus Bulks Up, Breaks Out To New High
Stocks ended mixed Friday after Federal Reserve Chair Janet Yellen signaled that interest rates were set to go higher.
The Dow Jones industrial average slipped 0.3%, dragged down by Verizon (VZ) and McDonald’s (MCD), and the S&P 500 lost 0.2%. The Nasdaq edged up 0.1%. Volume rose 22% on the NYSE and 8% on the Nasdaq compared to Thursday, according to preliminary data.
Yellen said early Friday that the case for an interest rate hike has “strengthened,” while Fed Vice Chairman Stanley Fischer said a September increase is possible.
Fitness equipment maker Nautilus (NLS) gapped up to soar more than 7% to a new high in heavy volume, rising decisively past a 21.22 buy point of a 27-week consolidation. It will join the small-cap S&P 600 index after the close Sept. 1.
Tape Reading the SPY ETF
$SPY price action started positive on Friday but quickly took a violent tumble after Janet Yellen’s speech.
Although there was buying into the last hour of the day I believe it was short covering into the weekend. Volume was strong to the bearish side so it looks like the stock market will get one more day of selling today.
Last week we identified as $217-219 as the support and resistance to monitor, we nearly hit both levels in one day. The $SPY is still tight an undecided. With Labor Day weekend coming up I would remain in stock picking mode and not expect much help from the general market other than pockets of opportunity.
Keep your cash safe for now and pay attention to sector rotation. The stock market is coiling for a large move, you want to have buying power for when it happens. Don’t hesitate on your plan, but don’t over trade because it’s been a slow month.
In other words, be a professional.
Stocks in Play: $AMZN research on finviz.com
$AMZN NEWS: Why physical bookstores make sense for Amazon
Having shifted the world toward online buying, Amazon’s physical bookstores may have you scratching your head — until you consider the “amazing” branding, analysts told CNBC’s “Closing Bell” on Friday.
“It certainly makes sense from a branding perspective,” said Daniel Kurnos, analyst at Benchmark. “This is about showroom-ing. They can highlight their product line-up as they continue to battle for living room share.”
Amazon is planning three more physical bookstores, expanding its current Seattle offering to Chicago, San Diego and Portland, the Financial Times confirmed on Thursday.
Amazon (AMZN) to Expand Brick & Mortar Bookstore Concept
Amazon.com, Inc. AMZN is reportedly planning to open its fourth brick-and-mortar bookstore in Chicago. According to the Chicago Tribune, the new bookstore in the Lake View region will open its doors next year.
Amazon opened its first brick-and-mortar bookstore known as Amazon Books last year at Seattle’s University Village shopping center. Besides stocking more than 5000 books at a time, it serves as a platform to increase customer loyalty to the Amazon brand.
Stocks to Trade 8-29-16 | Monday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: SRPT
Negative last 20 and 5 trading days | closed 2% lower from the open: gme, cxw, duk, d, vtr, x, nem
Quarterly Order Flow:
Bullish Stocks to Trade: AMZN, BABA, CLR, SWKS, AVGO, SM, LRCX, TIF, PXD, JWN,
Bearish Stocks to Trade: sig, nclh, dis, mcd, gild, bmy, fslr
2x Normal Volume: RAX, GME, STJ, DG, HLF, ESRX, DLTR, SIG
Inside days: vrx, stj, dg, myl, bmy, esrx, nflx, teva, celg, endp, mgm, vlo, mbly, lly, rost, hain, tsn