Today’s Trading Lesson…
Declining price action on the open can be seductive. You think “I got the top!” The only problem is we are in a bull market.
I made this mistake for years. If you eliminate counter trend trading, especially bottom and top picking, you quickly become a better trader.
Trade with the order flow. It’s easier.
On the Tape Today...
$MA bull flag after a gap and trend day. Buy stop above yesterday's high with a target of $96. (see chart)
$MS consecutive inside days. Look for a bid above $28, target is $29.
$STX daily swing low patter, Bid above $31.50 with a target of $33.75.
$AAPL continues to show bullish order flow. Bid above yesterday's high with an ultimate target of $109.
$MA 8-5-16 (Click to Enlarge)
U.S. stocks set for gains as traders brace for upbeat jobs report
Wall Street was gearing up for a mildly positive trading day on Friday, with stock futures tilting higher ahead of what is expected to be a fairly solid U.S. jobs report.
Jobs frenzy: In the two previous months, the nonfarm payrolls number has ranged from 11,000 jobs being added in May to 287,000 in June, but analysts are predicting a less dramatic reading in July. Economists polled by MarketWatch expect 185,000 new jobs last month.
“Today will represent a possible significant event when it comes to determining confidence in the U.S. interest rate policy outlook for 2016,” said Jameel Ahmad, market analyst at FXTM, in a note.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 8-5-16 | $FEYE New Boss
Priceline Stock Jumps On Beat; Investors Brace For Jobs Report
Stocks finished mixed Thursday, with a few notable earnings reports punctuating an otherwise sleepy day in the stock market today as investors braced for Friday morning’s jobs report.
Priceline (PCLN) jumped after hours. It reported Q2 EPS of $13.90 compared with estimates of $12.69. Revenue came in at $2.56 billion vs. estimates of $2.58 billion.
Monster Beverage (MNST) was volatile after hours, rising 2% after it missed on earnings and sales, but the company announced it would buy back $250 million in stock. Earnings were 99 cents a share vs. estimates of $1.03. Sales were $743.5 million compared with estimates of $804 million.
Activision Blizzard (ATVI) reported Q2 earnings of 45 cents, 3 cents above estimates, and revenue of $1.57 billion vs. estimates of $1.46 billion. It was up slightly after hours.
West Texas Intermediate oil rose 2.7% or $1.10 a barrel to $41.93.
Tesla Motors (TSLA) gained more than 1% in the regular session despite reporting a bigger-than-expected loss.Read More — >>
Tape Reading the SPY ETF
$SPY looking for a catalyst. Maybe today’s economic numbers will do the trick.
Earnings season did not give the market a post-Brexit push to new highs as expected. Oil isn’t helping either.
From a pure tape reading perspective, this is bearish. That does not mean to sell short.
Stocks in Play: $FEYEresearch on finviz.com
$FEYE NEWS: FireEye plans layoffs as new CEO takes the helm, stock plunges
Kevin Mandia plots restructuring to ‘balance growth with profitability’
In his first major move since taking over the top spot for FireEye Inc., Chief Executive Kevin Mandia plans to cut hundreds of jobs and chop spending in several areas in order to find profit at a security firm where growth is slowing down.
In his first media interview since taking over the CEO role from David DeWalt in June, Mandia detailed restructuring plans Thursday that seek to cut about $80 million in annual expenses. Specifically, FireEye FEYE, -17.73% hopes that $20 million in cuts in the fourth quarter will help the security-software firm achieve its stated goal of recording adjusted profit in that period.
“We always knew somewhere around 2016, we’d have to change this company as we got scale, and we want to maintain the timeline for achieving non-GAAP profitability,” he said from the company’s Milpitas, Calif., headquarters in a telephone interview. “I want to balance growth with profitability, and we’re serious about that path to profitability.”
FireEye (FEYE) Stock Plummets in After-Hours Trading on Q2 Revenue, Guidance
NEW YORK (TheStreet) — Shares of FireEye (FEYE) were tumbling 15.1% to $14.22 in after-hours trading on Thursday after the company reported weaker-than-anticipated revenue for the 2016 second quarter and gave a disappointing outlook.
After today’s closing bell, the Milpitas, CA-based cybersecurity solutions company posted revenue of $175 million, while analysts were looking for $181.7 million. Revenue rose 19% from last year.
Stocks to Trade 8-5-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: PE, RCL, RICE, EXAS, TEVA, CAR, HOG, NFX, EOG, DVN
Negative last 20 and 5 trading days | closed 2% lower from the open: cf, fslr, rh, apc
Quarterly Order Flow:
Bullish Stocks to Trade: CAR, HOG, SLCA, NFX, AVGO, FB, BABA, LRCX, AMZN, AEM, SHPG, ETP, AAPL, IBM, GRUB, CELG, VMW, UNH, CAT, AMGN, HD,
Bearish Stocks to Trade: fslr, gild, mcd, cf, nbl, dis, de, cop, skx, gild, do, mcd, luv
2x Normal Volume: CF, MET, FSLR, MYL, PE, TRIP, RCL
Inside days: pfe, wmb, ms, x, vlo, celg, pg, mrk, bk, nem, hlt, schw, ea, hbi, gis, wdc, sm, csx, pm, twx, mo, pep, cl, stt, unp, lly, gs, etfc