Today’s Trading Lesson | Trading Inside Day Candlesticks
I had to check the scan a few times this morning before I believed it.
Today we have a huge list of inside days (scroll to the bottom of the blog post) so it’s the perfect scenario to discuss how to trade this powerful set up.
A beginners guide to trading inside candlesticks/inside days…
Video Training: We discuss how to identify inside candlesticks and the type of trading scenario it sets up.
The meeting then takes it further and discusses how to use inside candlesticks as entry triggers on the shorter time-frame charts.
On the Tape Today...
$TSLA breakdown on solid volume looks like a great short with room to go. But it's the 3rd well-offered day in a row. Take the short but exit if it trades above the open price. (see chart)
$LMT inside day/weak close: short sale, sell stop @ $244. Initial target is $238.
$FL bull flag sets up a buy stop @ $66.80. Initial target is $69.
$FB pennant breakout we called is within $1.50 of the target. The trade is still valid for one more day looking for new 52 week highs.
$TSLA 8-30-16 (Click to Enlarge)
$TSLA 8-30-16
Wall Street faces choppy day as traders wait for rate clues
Apple faces up to $19 billion tax bill in EU ruling
U.S. stock futures struggled for direction on Tuesday, with investors playing a waiting game in the runup to the key jobs report later this week, as they weigh the prospects for an interest rate rise.
Investors will be watching comments from Federal Reserve Vice Chairman Stanley Fischer later this morning, to see whether he continues the hawkish tone taken by Fed Chairwoman Janet Yellen.
“Tuesday is likely to be one of the quieter days in an otherwise busy and important week for the markets, with investors having one eye on Friday’s U.S. jobs report following Janet Yellen’s hawkish comments at Jackson Hole on Friday,” said Craig Erlam, senior market analyst at Oanda, in a note.
Shares of Apple Inc. $AAPL, -2.94% slipped 0.3% premarket on reports the European Union’s antitrust regulator will rule the tech giant’s tax deals in Ireland were illegal. Analysts have estimated Apple could be ordered to pay back up $19 billion in taxes.
Stock Market Today: Heatmap of the S&P 500
$SPY Heatmap 8-30-16
Stock Trading Today 8-30-16 | $AAPL EU Fine
Stocks Close Higher, But Nasdaq Lags
The stock market closed higher Monday, when a couple of leading stocks broke out of bases.
Steel stocks rose after Deutsche Bank upgraded Allegheny Technologies (ATI) to buy from hold. The maker of specialty materials and components jumped 11%, ending near the 18.77 buy point of a pattern.
Telecom infrastructure stocks also led, as Acacia Communications (ACIA) rose 5% in heavy trading. The stock is bouncing after taking a break last week from a torrid advance earlier this month.
The S&P Case-Shiller home price index comes out at 9 a.m. The Conference Board releases its consumer confidence report for August at 10 a.m.
Tape Reading the SPY ETF
$SPY price action was healthy for the bulls.
But…if you take out the gap higher on August 5, we are in the middle of a five week trading range. The higher open and intra day uptrend gave us a day to feel confident in the longs.
Market/sector and stock in sync has been rare this month. I hope you took advantage of it. The volume is going to dry up as the week progresses towards Labor Day weekend.
$SPY 8-30-16
Stocks in Play: $AAPL research on finviz.com
$AAPL NEWS: Apple set to face up to $19 billion tax bill in EU ruling
EU regulators are poised to rule Tuesday that Apple’s tax deals with Ireland were illegal, sources say.
The European Union’s antitrust regulator is poised to rule as soon as Tuesday that Apple Inc.’s tax arrangements with Ireland have breached the bloc’s state-aid rules, according to people familiar with the matter.
The EU’s decision is likely to aggravate trans-Atlantic tensions over the investigations into tax deals brokered between U.S. multinational corporations and individual European countries. Washington has said the probes unfairly target American companies.
Ireland ‘disagrees profoundly’ with EU on Apple tax bill
Ireland disagrees profoundly with the European Commission’s ruling against its tax dealings with Apple Inc (AAPL.O), Finance Minister Michael Noonan said on Tuesday ahead of seeking cabinet approval to appeal.
Ireland’s finance ministry said its position remained that the full amount of tax was paid and no state aid was provided. Ireland did not give favorable tax treatment to Apple and does not do deals with taxpayers, it added.
It also said the disputed tax opinions in the Apple case no longer applied and that the decision had no effect on Ireland’s 12.5 percent corporate tax rate or on any other company with operations in the country.
$AAPL 8-30-16
Stocks to Trade 8-30-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CF, APC, PXD, SRPT
Negative last 20 and 5 trading days | closed 2% lower from the open: cxw, hznp, tsla
Quarterly Order Flow:
Bullish Stocks to Trade: JWN, SRPT, PXD, TAP, YELP, KSS, UNP, YUM, VMW, DVN, FB, DD, CLR, LRCX, SWKS, MAR, EA, AMZN, SM, ADBE, AVGO, NVDA, BABA, ROST, TIF, BBY
Bearish Stocks to Trade: gild, nclh, bmy, fslr, myl cah, dish
2x Normal Volume: MYL, CXW, RAX, STJ, DG, ESRX, HLF
Inside days: ko, pg, baba, x, wmt, xom ,nem, dal, dvn, jd, ebay, mcd, dhi, v, aal, crm , yhoo, low, luv, cvx, tgt, hlt, phm, gps, slb, hd, mos, pm, coh, wdc, gs, celg, ma, amgn, gis, ibm, ual, hon, ba, cat, utx, lmt