Today’s Trading Lesson…
There’s nothing worse than making easy money…
The easy money is coming soon. Quiet price action always leads to an increase in volatility. The general indices are about to give some lovin, history is on the side of this prediction.
The unanswered question is; “Will you be happy or pissed off when it arrives?”
There is nothing worse for us than making easy money after over trading. Instead of being net positive, we simply earn what we lost. We claw our way back to break-even. Instead of getting paid we remain frustrated.
Which is it going to be for you? Be patient now, get paid later.
Making money is easy when the market is obvious. Anyone with basic chart reading skills knows that. The problem is we trade too much when it’s not clear.
That’s on us, not the market.
On the Tape Today...
$HFC showing signs of accumulation. Increased volume in a trading range. (see chart)
$JWN buy-stop above $45 breaks a five month downtrend. Profit target is $50
$GS on the radar. looking for a breakout-pretty much range-bound 2016. Need to see volume and a clean pause above $165 to trust the bullish side
$XOM bear flag sets up a short sale with a target of $85.50. A higher open would be optimal.
$HFC 8-9-16 (Click to Enlarge)
Dow poised for a win as sunny mood refuses to fade
U.S. stocks were set to take another stab at a record closing high on Tuesday, with futures inching up as investors stayed optimistic ahead of productivity figures and other fresh economic data.
“Markets have managed to hold on to the dollar strength/risk positive mood following on from the strong nonfarm-payrolls report on Friday,” said Richard Perry, analyst at Hantec Markets, in a note. “This mood of optimism has seen a recovery in not only the dollar, but also risk appetite, that has pulled equities and commodities such as oil higher.
But can these moves continue with a stronger dollar?” he asked.
Ahead of the bell, Valeant Pharmaceuticals International Inc. VRX, +7.80% and luxury retailer Coach Inc. COH, -1.38% are slated to report earnings. Valeant shares rose 0.9% in after hours trade on Monday after the drugmaker relaunched a bacterial ear infection treatment that had been discontinued last year.
After the markets close on Tuesday, Walt Disney Co. DIS, -0.08% , Fossil Group Inc. FOSL, +0.62% and Yelp Inc. YELP, -1.86% are slated to report.Read More — >>
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 8-9-16 | $DIS Earnings
Stocks End Mildly Lower; MaxLinear Plunges After Hours; Inphi Rises
What To Expect From Disney Earnings On Tuesday: READ ABOUT $DIS EARNINGS — >>
Stocks ended slightly lower Monday, taking a breather after the S&P 500 and the Nasdaq hit new highs Friday on a strong jobs report.
The Nasdaq slipped 0.2%, while the S&P 500 and the Dow Jones industrial average each lost 0.1%. Volume in the stock market today was lower across the board compared to Friday, according to preliminary data.
After the close, chip designer MaxLinear (MXL) was down 15% after a weak Q3 outlook marred its Q2 earnings report. The stock ended the regular session in buying range from an entry at 21.08.
Inphi (IPHI) was up 3% following its quarterly earnings report. The stock edged up less than 1% during the regular session and was extended past a 33.69 buy point of a double-bottom base.
Drugmakers were among the worst performers during the regular session. Bristol-Myers Squibb (BMY) dropped 5%, adding to Friday’s 16% plunge, after Jefferies Group slashed its price target on the stock to 69 from 80.Read More — >>
Tape Reading the SPY ETF
$SPY volume and short-term clarity non-existent, but that’s not a bad thing.
The longer the market coils during a light volume trading range, the greater the odds of a significant move. A huge key for traders right now is patience. Do not over trade!
I have committed, and witnessed this mistake, thousands of times… We feel the need to trade because “that’s what traders do when the market is open.” But when we trade without an edge, we throw money away.
Then when the market picks a direction, we simply make back the money we threw away.
Be patient and be stock specific. 39 million shares in the $SPY yesterday is practically closed.
Pick your spots and be ready for the next big move. It’s coming soon.
Stocks in Play: $DIS research on finviz.com
$DIS Earnings NEWS: Disney Q3 Earnings: What to Expect ($DIS)
The Walt Disney Company (DIS) will report third quarter fiscal 2016 earnings results after the market close Tuesday. Wall Street expects the media conglomerate to deliver year-over-year increases in both revenue and profits.
But a beat on either or both measures would be seen as a disappointment unless Disney can show improvements in its sports network, ESPN.
For the three months that ended in June, analysts expect Disney to earn $1.61 per share on revenue of $14.15 billion, according to Thomson Reuters.
This compares to the year-ago quarter when earnings were $1.45 per share on revenue of $13.1 billion. For the fiscal year, the company is expected to earn $5.81 per share, while revenue of $56.3 billion is expected to rise 7.3% year over year.
What to expect from Disney earnings
Disney missed EPS estimates last quarter to snap a 13-quarter streak of beating expectations
Walt Disney Co. is set to report earnings for its fiscal third-quarter after the market closes on Tuesday.
The media and entertainment company has enjoyed massive box office success thanks to films such as “The Jungle Book,” “Captain America: Civil War” and “Finding Dory.” The House of Mouse also opened its $5.5 billion Shanghai theme park and resort.
Here’s what investors can expect:
Earnings: Disney DIS, -0.08% is expected to report earnings of $1.61 per share, according to the average estimate of analysts surveyed by FactSet. That would be an 11% increase from the $1.45 per-share earnings the company reported during the same quarter a year ago. Disney missed the FactSet EPS consensus for its second quarter, snapping a streak of 13-straight quarters that it beat expectations
Stocks to Trade 8-9-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: SM, JUNO, MOS, HFC, NOV, JWN, WYNN
Negative last 20 and 5 trading days | closed 2% lower from the open: viab, bmy
Quarterly Order Flow:
Bullish Stocks to Trade: TWLO, CLR, NFX, DVN, SLB, PXD, BLL, HOG, AAPL, EOG, FB, AMZN, MPC, UNP, IBM, LMT, SLCA, LRCX, BIIB, AMGN, AVGO, AEM, CELG
Bearish Stocks to Trade: skx, gpor, gild, luv, cf, fslr
2x Normal Volume: BMY, MRK, CRC, LMT, SM
Inside days: mrk, msft, cnp, nflx, atvi, ctsh, wba, lgf, wy, ibm, ccl, syy, cag, aet, scty, anf, kmx