Today’s Trading Lesson…
Accepting Losses Like Pro
Successful traders understand the importance of taking losses while minimizing them. When trades don’t follow through, I exit my position with as little damage as possible.
No ego here. Wrong is wrong!
No trader makes money all the time, and the best traders in the world are successful because they know the importance of accepting and taking trading losses.
On the Tape Today...
$SWKS showing solid relative strength and order flow. Inside day breakout-buy stop above yesterday's high, target of $78. (see chart)
$GS-keep it in your watch list every day. Has a lot of room to go ($184) $MS and $JPM too.
$NKE retraces to a confirmed uptrend line. Bid if above the open price with a profit target to the previous swing high of $60.50
$CRM smashed after earnings announcement, a solid sell short today after the first half hour.
$SWKS 9-1-16 (Click to Enlarge)
U.S. stocks on track to gain as their weakest month historically starts
September is historically the S&P’s worst month; Salesforce sinks
U.S. stock futures on Thursday pointed to an upbeat start to the new month, as investors braced for a raft of economic data and didn’t seem fazed by September’s weak track record. The S&P has dropped in September 57% of the time, and it’s the month with the weakest average performance, said Sam Stovall, U.S. equity strategist at S&P Global Market Intelligence, in a note.
“Monthly price declines and frequencies of negative returns were even greater during presidential election years without an incumbent candidate,” Stovall said. Economic news: A report on weekly jobless claims is slated to hit at 8:30 a.m. Eastern Time, with economists polled by MarketWatch forecasting 265,000 claims.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-1-16 | $LULU Earnings
Stocks End With Mild Losses; Salesforce.com Slumps Late On Earnings
The last trading day in August saw modest losses for the major averages, but it closed near session highs. All in all, indexes held up fairly well despite a weak session in the oil patch. Murphy Oil (MUR), Apache (APA) and Anadarko (APC) weighed on the S&P 500 with losses ranging from 4% to 6%.
Benchmark WTI crude oil futures for October delivery slumped nearly 4% to $44.70 a barrel after the Energy Department said domestic crude stockpiles rose last week. Despite the softness, oil still clocked a 7.5% gain in August.
Among the day’s movers, Salesforce.com (CRM) notched its fourth straight loss and 13th straight close below its 50-day moving average. Shares dipped 0.5% during the regular session and lost another 6% in after-hours trading after its earnings report.
$LULU Lululemon Finally Engineering An Earnings ‘Turnaround’
Nike (NKE) and Under Armour (UA) may be the dominant names in the sports apparel industry, but Lululemon Athletica (LULU) is seen finally engineering a turnaround as activewear remains trendy. WATCH VIDEO — >>
Tape Reading the SPY ETF
$SPY $217 support continues to hold.
I wouldn’t make too much of it. The general market is still nowhere. For us to get excited price action needs to break the 217-219 range with volume. Dipping above or below does nothing but runs stops.
On a positive note, classic technical analysis interprets a light volume pause for the last six weeks. That implies a continuation of the up trend.
Stocks in Play: $LULU research on finviz.com
$LULU Earnings NEWS: How to Trade Lululemon Athletica Inc. (LULU) Ahead of Earnings
Lululemon met expectations in its Q1 2016 earnings report, posting an EPS that was equal to the Zacks Consensus Estimate.
LULU has an average EPS surprise of 0.21% for the last four quarters. In Q2, the company met our consensus estimate, posting EPS of $0.34. In Q3, LULU missed earnings expectations by 5.4%. In Q4 of 2015, Lululemon beat the Zacks Consensus Estimate by 6.25%.
What to Watch Thursday: Lululemon Earnings, Jobless Claims
On Thursday, Sept. 1, investors await earnings from Lululemon Athletica (LULU) and weekly jobless claims. After the markets close, analysts expect the athletic retailer to post earnings of $0.38 a share on sales of $515.5 million.
During the same quarter a year ago, the company posted profits of $0.34 a share with revenue of $453 million. Investors will be looking for updates on the company’s strategy to broaden its customer base, especially with its lineup of men’s clothing.
Stocks to Trade 9-1-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open:
Negative last 20 and 5 trading days | closed 2% lower from the open: juno, apa, dg, rrc
Quarterly Order Flow:
Bullish Stocks to Trade: KHC, MBLY, BABA. SWKS, LRCX, DLPH, ADBE, FB, AMZN, YELP, GS, YUM, UNP, UNC, NVDA, EA, TIF, DD, SM, BBY, PXD, CLR
Bearish Stocks to Trade: fslr, myl, nclh, mcd, bmy, gild, cvs, sig
2x Normal Volume: M, DG, CRM, HAIN, IONS, DLTR
Inside days: aal, mos, cfg, ual, gis, gme, dhi, tol, swks, hca