Today’s Trading Lesson…
Most of us begin trading for the image, the idealized image of entrepreneur and freedom.
Once we tackle the task, our desire switches to consistency. We simply want to get paid. The fear of a “real job” looms and it sucks.
The thought of heading back to a cubicle turns our stomach. We just want to earn a living and then learn how to trade bigger.
But where does trading consistency come from? How does a steady trading paycheck happen?
Professional trader have a plan. They know exactly what to do. They don’t know the future price but they know their next move.
Like it or not, you need to devote time to a trading plan. Consistency comes from structure.
Use this trading plan template and get your completed in 7 days or less.
I don’t make guarantees, but in this case I will make an exception. Without a plan you have no chance.
Spend a half hour a day. Think hard and long, and realistically about your answers.
Get your strategy on paper.
On the Tape Today...
$WDC and $STX attempting to breakout again on Friday. Both remain longs but don't get caught, force the trade to be above the open before entry. (see chart)
$UNH momentum breakout worth a look for one more day of follow through. Cash flow trade only, minor resistance at $140.
$SBUX swing trade triggers on a sell-stop <$53. Target to cover is $42.25
$CRM continues to produce lower highs, swing trade sell-short with a buy to cover in the $68 area.
$WDC 9-19-16 (Click to Enlarge)
U.S. stocks set for gains as oil rallies
U.S. stock futures on Monday pointed to a higher market open, joining in global gains that have come as oil futures rally.
The U.S. oil benchmark CLV6, +1.42% traded 1.5% higher, with credit for the jump going in part to news that military conflicts in Libya had affected that country’s crude exports.
Another supportive factor was Venezuelan President Nicolas Maduro saying on Sunday that members of the Organization of the Petroleum Exporting Countries and non-OPEC nations were nearing an agreement that would stabilize oil markets.
Asian markets “began the week on a moderately positive tack for equity markets, as the oil price rebounded slightly on reports over the weekend of a potential OPEC deal,” said Ian Williams, a Peel Hunt strategist, in a note.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-19-16 | $WFC Aftermath
Stocks Fall But Nasdaq Up 2% For The Week; Apple, Glaukos Finish Strong
Stocks mounted a late-hour rebound but still finished in the red Friday. However, breakouts by megacap tech Apple and small-cap medical innovator Glaukos proved that investors are still hungry for growth companies.
The Nasdaq outperformed thanks to heavy buying in the chip sector, courtesy of bullish third-quarter sales guidance from Intel (INTC).
In the small cap world, glaucoma treatment firm Glaukos (GKOS) was one of this week’s stars, bolting more than 16% higher for the week and surging past a 36.60 cup-base buy point.
On the big-cap side of the fence, Apple (AAPL) edged back only 0.6% to 114.92. While volume surged more than double its 50-day average, Friday’s turnover was lighter than both Wednesday and Thursday’s sessions, in which shares bolted nearly 7% and burst past a 110.33 cup-with-handle pivot point. Apple’s iPhone 7 officially went on sale Friday.
WATCH VIDEO on investors.com
Wells Fargo’s CEO Defends His Main Street Legacy to Congress
John Stumpf tried to quit Washington’s Wall Street club.
Last year the long-time leader of Wells Fargo & Co., who sees himself as the quintessential banker to Main Street, wanted to underscore his firm’s distance from the Goldmans and Morgans of global finance, according to people familiar with his thinking.
So he resigned from the Financial Services Forum, the industry’s exclusive inside-the-Beltway lobbying association made up of the largest bank CEOs.
Despite that effort, Stumpf is ending up in a place familiar to some of his Wall Street brethren — being summoned to Capitol Hill to account for a scandal. CONTINUE READING on bloomberg.comMindset
Tape Reading the SPY ETF
$SPY futures point higher, but I am sticking to my tape reading analysis. Last week’s price action showed us distribution.
A heavy volume trading range is a change of trend. The FOMC rate decision this week gives more indecision to an already sloppy stock market.
If you want to trade long-term, recognize when to push and when to trade for cash flow.
This is for cash flow. Stocks may be near all-time highs, but don’t kid yourself, we are staring at a neutral order flow for almost eight weeks.
Maybe the FED will change that this week.
Stocks in Play: $WFC research on finviz.com
$WFC NEWS: Wells Fargo faces scrutiny over lack of sales scandal disclosure
A phantom account scandal at Wells Fargo & Co has put the U.S. bank’s disclosure policies under a harsh spotlight. Despite press reports that a federal regulator and the Los Angeles prosecutor were investigating sales practices at retail branches of the San Francisco-based lender, the bank, which agreed to a $190 million settlement, gave investors no indication of the scale of the problem.
The surprise spooked investors and has lopped roughly $19 billion off its market value since the probe disclosed last week that Wells employees had created roughly 2 million accounts for customers without their knowledge in order to meet internal sales targets.
The bank has fired 5,300 people over the scandal. READ MORE on reuters.com
Stocks to Trade 9-19-16 | Monday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: CAR, CLVS, NFLX, WNR, TRGP
Negative last 20 and 5 trading days | closed 2% lower from the open: expe, ln, utx, aal
Quarterly Order Flow:
Bullish Stocks to Trade: CLVS, WDC>$55.50, MOMO, AMZN, WNR, TRGP, FB, BABA, DKS, WYNN, MA>$100, CHTR, STX>$37, LVS, AAPL, SRPT
Bearish Stocks to Trade: rcl, fslr, ctsh, crm, viabm bmy, low, hes, esrx, cvs, tgt, dis,
2x Normal Volume: aapl, nvda, rrc, dg, avgo, ba, unh, expe, clvs
Inside days: wfc, atvi, pg, yhoo, ko, cncsa, bsx, pypl, nke, abbv, fitb, ebay, mdlz, dis, ual, gild, m, usb, dg, avgo, dhr, psx, schw, met, dow, cat, low, ibm lov, pm ,wfm, swks, ntap, teva, hig, ma, jwn, cf, wynn, ea, skx, tjx, tol rost