Today’s Trading Lesson…
Tight market conditions can lead to frustration.
Experienced traders understand stock picking is the key to profitably trading a tough tape. I am defining “tough tape” as one without clear order flow. We don’t have a clear answer to the question, “Are buyers or sellers clearly in charge?”
The importance of strict criteria cannot be emphasized enough. This short video [7:16] shows you how to define criteria before you runs scans. Good market or tough market, this skill will carry you for years.
If you have any questions drop me a line in the comments.
On the Tape Today...
$PYPL consecutive bullish days a positive sign. Needs to close over $41 before a new long. (see chart)
$LOW short-sale sell-stop below $70.88 has room to go, initial cover target is $68.
$V solid buying order flow despite the previous market action. Trade the inside day breakout long today. Ignore if the stock trades below the open price.
$NCLH short-sale in play with a three day pause. Look for an intraday trigger and $34 target.
$PYPL 9-14-16 (Click to Enlarge)
U.S. stocks set to rebound after oil-fueled selloff
Wall Street was set to recover slightly Wednesday from the prior session’s brutal selloff, with a rally in oil prices helping to send U.S. stock futures higher The Energy Information Administration later on Wednesday releases its weekly inventory data, forecast to show a rebound in stockpiles.
Fed watching: However, traders were still hesitant of dipping their toes too deep into stocks ahead of the closely watched Federal Reserve meeting on Sept. 20-21.
“With the U.S. central bank now in blackout period ahead of the decision next Wednesday, there is little in the way of positive drivers helping underpin the market at this time,” said Michael Hewson chief market analyst at CMC Markets, in a note.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-14-16 | $AAPL Gaps Higher
Bears Strangle Stocks Again; PayPal Rises, 10-Year Yield Up Again
The market showed its split personality again Tuesday as sharp gains Monday in lower volume were followed up by big losses in higher volume.
Apple (AAPL) was the sole gainer in the Dow, rising just over 2%, after U.S. wireless carriers Sprint (S) and T-Mobile (TMUS) said pre-orders were strong for the iPhone 7. Netflix (NFLX) was a weak performer in the Nasdaq 100, falling 3% to 96.09, after Macquarie analyst Tim Nollen lowered his rating on Netflix stock to underperform from neutral, with a 12-month price target of 85.
PayPal (PYPL) outperformed in the Nasdaq 100, rising for the sixth time in seven sessions. Shares gained 3% to 39.86. Earlier this month, PayPal announced a strategic partnership with MasterCard (MA) that will put PayPal in more stores. PayPal is near the top of a long consolidation with a 41.85 buy point.
Continue reading on investors.com
Tape Reading the SPY ETF
$SPY churning now with a significant increase in volume.
The opposite of the price action/volume we received in August. Traders hoped for volume after Labor Day, we got it. The market brought distribution, not what we wanted.
Active traders welcome the increase in volatility, but we still need a direction in order flow. This means your trades should be cash flow right now.
Back-and-forth price action calls for smart trading, not aggressive trading. Pay the bills and be patient.
Stocks in Play: $AAPL research on finviz.com
$AAPL NEWS: Apple Shares Rise on iPhone Reviews, Early Preorder Indications Some wireless carriers suggest strong consumer interest in the new phones Shares of Apple Inc. rose as much as 3.2% Tuesday following generally positive reviews of its latest iPhone and indications of consumer interest from the wireless carriers.
The stock, which traded as high as $108.79, increased 2.4% to $107.95, making it the lone gainer in the Dow Jones Industrial Average and the second-largest riser in the S&P 500 index. Last week, Apple unveiled the iPhone 7 and iPhone 7 Plus, which offer a longer battery life, more storage and brighter screens than their predecessors, but eliminate the traditional headphone jack.
On Tuesday, many media outlets, including The Wall Street Journal, released their reviews for the new iPhones. The Wall Street Journal, in its review, said the new smartphones were worth the upgrade and showed that Apple was “improving features that actually matter.”
Stocks to Trade 9-14-16 | Wednesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: APC
Negative last 20 and 5 trading days | closed 2% lower from the open: mur, x, etp, nbl, nfx, dvn, slw, hes, mbly, nue, huno, nem, oxy, hlf, ctrp, cvx, cci, vfc
Quarterly Order Flow:
Bullish Stocks to Trade: WYNN, LNC, APC, BABA, LVS, MA, PNC, STX, FB, REN, CHTR, COF, TRGP, UAL
Bearish Stocks to Trade: hes, juno, viab, fslr, dltr, ctsh, ua, cah, low, vfc, dg, crm, eqr, m, bmy, cvs, tsla, dis, cost, nclh
2x Normal Volume: APC, PG, ETP, JCI, APA, MON, HDS, MOMO, NVO
Inside days: c, pg, jom, fb, kmi, ms, ko, bsx, yhoo, dal, bmy, ebay, qcom, jnj, dis, abbv, wmt, nke, so, aig, mgm, hlt, myl, low, mdt, ma, stx, ual, vlo, ba, pm, mcd, ibm, utx, dish, bidu, lmt