Today’s Trading Lesson…
Can a strategy that doesn’t exist anymore help us improve our trading plan today?
I say yes.
Core principles of stock trading are the DNA of success. The only thing that changes is your objective.
Stock scalping is often confused with momentum trading today. Pure scalping was level 2 trading. It later evolved into momentum trading.
On the Tape Today...
$KR relative weakness in a strong tape and selling order flow . (see chart)
$VLO buy-stop @ $56 still in play. Day trade or swing trade, target is $62.50.
$ATVI bullish engulfing candle nears 52 week highs. Buy-stop > $43.50 add on a pause @ $44.25.
$MS $32.75 buy-stop. Minor resistance at $34, ultimate target to sell $35.50
$KR 9-13-16 (Click to Enlarge)
Dow futures slump more than 100 points as traders digest Fed hints
Wall Street was set to open with sharp losses on Tuesday, with stock futures pulling back after a solid rally as investors digested the latest Federal Reserve comments.
A drop in oil prices further hampered sentiment after the International Energy Agency warned of slowing growth in demand.
Brainard said the Fed should be cautious in tightening policy to avoid getting trapped in a low-growth, low-inflation environment.
Hawkish comments from Boston Fed President Eric Rosengren last week spurred expectations for a move by Fed policy makers at their Sept. 20-21 meeting. However, after Brainard’s remarks, the probability of a rate hike next week fell to 15% from around 24%, according to the CME FedWatch Tool.
The conflicting messages have left traders struggling to assess just where the Fed stands.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-13-16 | $WYNN Momentum
Stocks Close Higher After Erasing Early Losses; NetEase Shines
The stock market reversed higher Monday, a positive turn after Friday’s selling left investors shaken. Wal-Mart Stores (WMT) had the day’s best gain on the Dow. The stock rose after Cowen raised the stock to outperform from market perform and boosted its price target to 83 from 76.
In a good day for technology shares, NetEase (NTES) stood out. Shares soared 8% in heavy trading, as they found support in a pullback to the 10-week moving average. WATCH VIDEO on investors.com
3 Reasons $Wynn Resorts Stock Could Rise
Casino giant Wynn Resorts (NASDAQ:WYNN) has faced tumultuous times over the past couple of years.
The company rode the wave of growth in the Asian gaming capital of Macau, making that market even more important to Wynn’s overall success than its landmark properties on the Las Vegas Strip.
Let’s take a closer look at three reasons Wynn Resorts stock might rise further. CONTINUE READING — >>fool.com
Tape Reading the SPY ETF
$SPY bounced back, but not exactly a shock.
Yesterday’s trading gives you a good trading lesson to print out and put in your journal. Order flow is always your first consideration.
I don’t care if you are scalping or holding for three weeks. The easiest trades happen when you trade with the institutions.
So what do you watch for now? Smart traders pay attention to the churn. Do we continue to trade with increased volume without price advancing?
If the $SPY creates a grinding tape, look for the market to start a down trend. The type of price action/volume just described is classic distribution.
So what is the trade? The short side of the market is low probability. Most short sales are cash flow type scenarios, which means you would not be as aggressive with your share size and leverage.
So what about the longs? You can find a few stocks breaking out with room to go, but I hesitate to bid for stock trading below the open. Yesterday’s $SPY trade opened lower but was above the open the entire day.
Pay attention for that type of scenario today and trade accordingly.
Stocks in Play: $WYNN research on finviz.com
$WYNN NEWS: Wynn Resorts Bucks the Broad Market Decline — Here’s How to Trade It Now
There were very few stocks not taken down in Friday’s broad market decline. The number of stocks above their 50-day moving average dropped from over 60% to under 35%, a breadth indicator that reflects a high degree of participation in the pullback.
One stock that was seemingly unaffected was Wynn Resorts (WYNN) . Wynn saw a 2.75% advance in the Friday session and was up 6.5% on the week.
$Wynn Helps Macau Break 26 Month Losing Streak (Maybe)
Macau ended its 26-month casino revenue losing streak in August.
The long awaited, often predicted gain follows the current wave of Cotai openings’ most anticipated event so far, the debut of Wynn Palace on August 22. Previous openings of Galaxy Macau’s second phase and Melco Crown’s Studio City were expected to provide upticks in gaming revenue and tourist arrivals, but didn’t.
Now analysts are divided on whether Steve Wynn’s new $4.2 billion Palace – watch this space for an eyewitness report –is the catalyst for a turnaround and whether this glimmer of good times will last.
Stocks to Trade 9-13-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: PRGO, WYNN, ACAD, LN, AMGN, TSO, NFLX, UAL, GS, WDC, REN, FB, BABA, BIDU
Negative last 20 and 5 trading days | closed 2% lower from the open:etp
Quarterly Order Flow: Bullish Stocks to Trade: MOMO, WYNN, LRCX, MPC, PG, LVS, SRPT, MA, CHTR, URBN, UAL, GS, SE, PXD, STT, REN, STX, FB, COF, BABA, BIDU, PNC, PRU, EOG, TRGP, CLR
Bearish Stocks to Trade: hes, crm ,tgt, m, cvs, dltr, low, gild, bmy, dis, tsla, dg, nclh,
2x Normal Volume: JCI, ETP, WYNN, MOMO, PRGO, HDS
Inside days: ko, ggp, vmw, xel, d, rost, brx, wwav, ln