Today’s Trading Lesson…
How to Run Profitable Scans in a Lifeless Market
If you’re a full time stock trader, especially a day trader, you need price action to make your living. We aren’t selling options and waiting for time decay. We need movement.
Each day two scans in my list of stocks to trade (end of this blog post) we have “momentum” and “inside days.” On a dull, slow grinding down day in the stock market we had a couple of terrific trades from these scans and were able to get paid.
Here is a short video how to run the scans using free software:
On the Tape Today...
$GS breakout finally looks real. Buy stop above yesterdays high, $184 the next target. (see chart)
$UAL gap and trend day gives us a "fuel" candlestick. $59 target, be a buyer today as long as the last price is above the open and $50.99.
$IBM continues to hover near a breakdown and change of trend. Sell short below $158 with an ultimate target of $144
$YUM ascending wedge buy stop above $91.25. If it trades back below $90, exit. Target is $96.
$GS 8-31-16 (Click to Enlarge)
Interest-rate chatter keeps U.S. stock futures in check
ADP employment report due premarket
U.S. stocks were facing another choppy session on Wednesday, with investors carefully staying on the sidelines ahead of the jobs report later in the week, which could weaken or strengthen the case for a Federal Reserve interest rate hike in September.
Data on private employment out in the morning, as well as comments from a trio of Fed speakers, will also be closely watched for any rate hints.
“While markets start to obsess again about Friday’s jobs report, given Fed vice chair Stanley Fischer’s comments yesterday, today’s ADP employment report will once again be looked at as a bellwether for this number,” said Michael Hewson, chief market analyst at CMC Markets, in a note.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 8-31-16 | $CRM Earnings
Stocks Dip, Volume Rises; Apple Extends Losses On EU Ruling
Stocks ended Tuesday’s session with mild losses on a generally quiet day of news flow. Goldman Sachs (GS), McDonald’s (MCD) and JPMorgan (JPM) outperformed in the Dow, but Apple (AAPL) lagged.
Shares lost 0.8% on news of a European Commission ruling that would force the company to pay $14.5 billion in back taxes to Ireland, the location of its European headquarters.
Will Acquisitions Shrink Salesforce.com ($CRM) Earnings?
Salesforce.com (CRM) is set to report quarterly earnings after the close Wednesday, as the software company continues to expand its product offerings and pose a greater threat to business-software leaders Oracle (ORCL) and SAP (SAP).
Salesforce is a pioneer developer of customer relationship management software made available to business customers via the cloud as a software-as-a-service.
Tape Reading the SPY ETF
$SPY recovered losses in the last two hours of the day but nothing to get excited about.
The volume is still putrid and will remain so until after Labor Day. The best plays we are seeing on the board right now are short-term momentum plays.
Continue to run scans for stocks that traded 2% high or lower from yesterday’s close and look for inside days. $TSLA and $BMY respectively.
Stocks in Play: $CRM research on finviz.com
$CRM Earnings NEWS: Salesforce earnings may be subdued ahead of big Dreamforce party
Salesforce to announce earnings Wednesday amid wave of acquisitions
Salesforce CRM, -0.11% is scheduled to report second-quarter earnings after the market closes on Wednesday. If the company has anything of import to announce, however, it will likely wait until early October, when Dreamforce will again nearly shut down downtown San Francisco with thousands of Salesforce employees and partners.
Investors are worried about Salesforce’s $4 billion buying binge, and are looking for answers
Salesforce has spent over $4 billion on acquisitions in the past year alone, and it’s making some investors grow concerned about the company’s spending strategy.
According to a note by Macquarie Research on Tuesday, Salesforce may have some explaining to do during its earnings call on Wednesday to ease the investors worried about the company’s record-high buying spree over the past year.
Stocks to Trade 8-31-16 | Wednesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: TSO, CF, UAL, MOS
Negative last 20 and 5 trading days | closed 2% lower from the open: nem, cxw, slw, aem, hlf, x, bmy, tsla, dg
Quarterly Order Flow:
Bullish Stocks to Trade: GS, SM, PRU, BABA, MPC, CLR, EA, KMX, YUM, PXD, OXY, TAP, UNP, AVGO, ADBE, DD, NXPI, YELP, FB, NVDA, FL, DVN, BHI, SWKS, URBN
Bearish Stocks to Trade: bmy, gild, sig, cvs, dish, mcd, nclh, fslr
2x Normal Volume: MOS, CF, UAL , STJ, RAX, DLTR
Inside days: fb, amat, pg, gild, jci, dis, csx, myl, azn, endp, esrx, bby, bsx, twlo, mdt, kss, wba, dd, ip, agn, pm, ibm,