Today’s Trading Lesson…
Trading Psychology is NOT Mumbo Jumbo
Trading psychology or mind games that shape your beliefs?
Once money and ego are involved, all well laid plans are rendered mute…
Trust me, you are not the exception. We all have an inner voice that can help us or lead us to doubt what we see.
We must do our best to recognize when our self-talk is in control and swaying us from our perfectly designed trading plan.
I have yet to meet a trader who hasn’t canceled a stop-loss as it was about to get hit. The fear of exiting a losing trade or avoiding the ego bruise of “being wrong” makes us do strange things.
In spite of the grip these demons have on us, I have developed some solid techniques to wake myself up when I am making poor decisions.CONTINUE READING — >>
On the Tape Today...
$COST gap and go sets up a short sale with a $153 target. Must remain below yesterday's low to validate the trade. (see chart)
$ADP buy stop @ $91. Target is $93. Do not jump the gun early, the trading range will eat your P&L.
$TIF gap fill and saturation point sets up a high probability buy today. Yesterday's low is a perfect entry to bid support.
$DIS sell stop < $94 with a swing trade target of $88.
$COST 9-2-16 (Click to Enlarge)
Wall Street poised for small gains with key jobs report ahead
Lululemon slides premarket after earnings U.S. stock futures inched higher Friday, but investors were still cautious ahead of the much-anticipated jobs report, which could set the stage for an interest-rate increase as soon as this month.
The muted moves mirror the trading action for most of this week, when investors have been looking toward one key data set: the nonfarm payrolls number. Federal Reserve Chairwoman Janet Yellen last Friday indicated at least one rate hike is on the cards this year.
Traders hope the August jobs report will provide clues as to whether the first tightening could come at the Fed’s September meeting.
“It may take an extreme anomaly in Friday’s NFP report to abruptly cool the heated expectations over the Fed raising rates at least once this year,” said Lukman Otunuga, research analyst at FXTM, in a note.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-2-16 | $WMT Job Cuts
Stocks Resilient Again; Double Whammy For Tesla CEO Elon Musk
Major averages turned in another solid performance on the first trading day of September, recovering well off session lows after some volatile action early in the session. Wal-Mart (WMT) and Nike (NKE) outperformed in the Dow, while Tesla (TSLA) was a noteworthy laggard in the Nasdaq 100.
Shares of Wal-Mart rose 2% on news it’s relocating 7,000 back-office workers in an effort to make its stores more efficient.
Shares of Tesla slumped 5% after the Wall Street Journal cited CEO Elon Musk’s growing need for cash. His other company, SpaceX, suffered a setback when one of its rockets exploded at a launch site in Cape Canaveral, Fla.
Tape Reading the SPY ETF
$SPY price action doing exactly what you would expect in front of Labor Day weekend-driving everyone crazy…
But wait, something changed. We see volume!
Almost 94 million shares traded is significant. Could we be seeing the first day of distribution?
** Accumulation or distribution type days possess many shares trading without an increase or decrease in price.
I have trumpeted a light volume pause for most of August, this made me sit up in my seat.
Stocks in Play: $WMT research on finviz.com
$WMT NEWS: Wal-Mart to Cut 7,000 Back-Office Store Jobs
Positions are some of the best compensated; aim is partly to put more staff in contact with shoppers.
Wal-Mart Stores Inc. plans to cut thousands of back-office positions around the country, a sign that the retailer’s effort to make its cavernous stores more efficient is also changing the face of its workforce.
The largest private employer in the U.S. is eliminating about 7,000 store accounting and invoicing positions over the next several months. The jobs are mostly held by long-term employees, often some of the highest paid hourly workers in stores.
The retailer wants those employees working with shoppers, not in backrooms, say company executives. Centralizing or automating most of their current tasks is more efficient, they say.
The jobs are coveted as a rare desk job in retail. “You are not running around the store on your feet all day” and receive decent pay, said a Wal-Mart store accounting employee who earns about $13 an hour, or $27,000 a year.
Stocks to Trade 9-2-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: LVS, BIDU, NVDA
Negative last 20 and 5 trading days | closed 2% lower from the open: tsla, tso, exas, hain
Quarterly Order Flow:
Bullish Stocks to Trade: CLR, LRCX, JWN, PXD, AVGO, BABA, AMZN, TAP, FB, SM, TIF
Bearish Stocks to Trade: tso, sig, gild, bmy, juno, mcd, fslr
2x Normal Volume: CRM, LVS, WYNN, COST
Inside days: ko, dal, aal, dvn, tgt, abbv, hrb, luv, stx, stj, mbly, mdt, wfm, jwn, coh, sm, mon, khc, swks, kors