Today’s Trading Lesson | Adjusting Your Game Plan
This is a VERY popular question in the coaching calls. In my experience, the answer is no for most traders.
You have 17.5 hours to find trades. To find stocks with obvious order flow or momentum. From the market close to the next open you have all the time in the world to find your great ideas and make great arguments for accepting risk.
Does it make sense that an alert pops up on your screen and then you somehow make that trade the best idea you can find?
I say no.
Do your homework and then be patient. If those trading ideas unfold, great. If they don’t, no big deal.
You may be thinking “but I need to trade to make money today!!” No you don’t. You need to make money. You don’t need to punch a clock and do it every day.
Trust me on this one. Make your life simpler and stick to your plan and let everything else go. It will be easier to be consistent.
On the Tape Today...
$GS swing low and strong close sets a trend day higher. (see chart)
$HPQ close to the $14.50 breakout level- again. Make sure it closes above that level for a trigger.
$DIS short sale still in play. Some short covering yesterday.
$BABA consecutive inside days sets up a trend day today. Look for a much bigger move if it can clear $85.
$GS 8-4-16 (Click to Enlarge)
Wall Street to look for cues from oil prices, Bank of England’s policy decision
U.S. stock futures held steady in early trading on Thursday, with investors keeping a close eye on oil prices and possibly the first interest-rate cut in seven years from the United Kingdom’s Bank of England.
“Oil has once again established itself as the central thematic behind the world’s financial markets and the fact we saw such a powerful reversal at the trend low, despite U.S. dollar strength, has driven a slight uplift in sentiment,” said Chris Weston, chief market strategist at IG, in a note.
Markets will now be looking to see “follow through buying to suggest the recent move lower in the barrel is over and consolidation is likely,” he said.
Bank of England in the hot seat: Central banks will be back in focus for Thursday, with the Bank of England’s Monetary Policy Committee overwhelmingly expected to vote for the first interest-rate cut in that country in seven years.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stock Trading 8-4-16 | $TSLA Losing Money Machine?
Stocks Rebound Modestly, But Tesla Reports Another Big Loss
Stocks rebounded modestly Wednesday following Tuesday’s sell-off, but Tesla Motors (TSLA) reported a bigger-than-expected loss after the close.
West Texas intermediate oil prices surged 4% or $1.56 a barrel to $41.07. It was the biggest daily gain in three weeks. It was attributed to futures players closing out bearish positions.
Tesla was volatile after hours, but little changed. It reported a loss of $1.06 a share for the second quarter compared with estimates of a loss of 52 cents. Revenue came in at $1.56 billion vs. estimates of $1.62 billion. It reported deliveries of 14,402 cars in the quarter compared with estimates of 14,307. It said year-over-year orders rose 67%.Read More — >>
Tape Reading the SPY ETF
$SPY inside day would normally set up a trend day.
The problem with making that call today is the larger range. Price action is smack in the middle of a three week range. I am not making a call on the $SPY until we see a large candle with volume outside of this window (@$215.31-217.35)
The $SPY showed buyers aren’t gone but clearly new money is not ready to step up. The best trades today are second day earnings momentum.
Stocks in Play: $TSLA research on finviz.com
$TSLA NEWS: Elon Musk: Tesla is not really a ‘money-losing business’
After quarterly loss of nearly $300 million, Musk touts growth at expense of profit
To Elon Musk, Tesla Motors Inc. isn’t really a “money-losing business,” despite losing lots of money.
After announcing a quarterly loss of $293.2 million — or $149.5 million without pesky things like stock paid out to employees and interest paid on the electric-car maker’s massive pile of debt — the Tesla TSLA, -0.90% chief executive said that his company’s growth negates its lack of profitability.
“The real question on profitability is, where do we set the dial on growth?” Musk said.
After a drawn-out discussion of all of Tesla’s growth initiatives and their prospective value propositions, Musk busted out the money line, literally.
“When all of that’s lumped together, (it) can be confusing. And then they would think Tesla’s a money-losing company but, well, not really. Not if you’re growing at like 100% a year,” Musk said.
Actually, Tesla is a money-losing business, really, in the fact that it brings in much less money than it spends and appears to be on that same path for the foreseeable future.Continue Reading — >>
Stocks to Trade 8-4-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: EA, PRGO, PRU, PSX, FTV, CNC, VLO, CLR, DVN, MPC, NFX, ETP, SM
Negative last 20 and 5 trading days | closed 2% lower from the open: dlr
Quarterly Order Flow:
Bullish Stocks to Trade: ETP, NFX, MPC, CAR, UNP, CELG, AAPL, LRCX, CAT, AVGO, CHTR, VMW, HLF, IBM, AEM, HD, UNH, AMZN, GRUB,
Bearish Stocks to Trade: skx, do, luv, gild, cop, mcd, lvlt, de, dis, dri, lyb, sig, cf
2x Normal Volume: DISH, ETP, EA, NFX, BIIB, SM, TRGP, DLPH
Inside days: aapl, fb, csco, dish, kr, ms, schw, nvda, ebay, luv, nem, qcom, abbv, mos, cvs, yhoo, amat, baba, phm, txn, mcd, apc, wba, tsla, adm, axp, utx, ba, unh, yum, cost, dd