Today’s Trading Lesson…
As the stock market churns, your stock-picking ability must accelerate.
If you can pick stocks, and the market picks a direction, you are golden. But the market trends 40% of the month (on average), so unless you learn to find stocks in play, you are screwed.
The problem for most struggling traders boils down to structure, they don’t have any. Today’s trading education gives you my template and criteria for running your trading scans. Some of which you see every day on the bottom of the blog.
Enjoy and take plenty of notes. If you have any questions, drop a comment I always reply the same day.
On the Tape Today...
$CVS below $89 triggers a short sale today. Buy to cover @ $86.50 (see chart)
$NKE bearish pause sell-stop @ $54.55 cover to buy at $52.
$MON "fuel" energy type candlestick called two days ago still a valid short sale. Cover to buy @ $99.30.
$HD bear flag $126 sell-stop, initial target to cover @ $124, then $116.50
$CVS 9-20-16 (Click to Enlarge)
U.S. stocks set for small bounce ahead of Fed, BOJ meetings
Investors are in waiting position until “Super Wednesday” when the Fed and BOJ decide on rates
Wall Street was set for a slightly higher open on Tuesday, but with stock futures trading in tight ranges as investors remained cautious ahead of two major central bank decisions.
“It isn’t unusual for traders to adopt a more cautious approach ahead of these events, particularly when we have two on the same day, both of which have the potential to create huge amounts of volatility in the markets,” said Craig Erlam, senior market analyst at Oanda, in a note.
The Fed kicks off its two-day meeting on Tuesday and will release its rate decision at 2 p.m. Eastern Time on Wednesday. Investors are widely expecting the central bank to stand pat on monetary policy, so attention is instead turning to the BOJ, where policy surprises are seen as more likely.
Continue reading on marketwatch.com
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-20-16 | $CHK Carl Icahn Sells
Carl Icahn Slashes Chesapeake Energy Corp ($CHK) Stake In Half
Billionaire Carl Icahn‘s Icahn Capital LP recently filed an amended Form 13D with the SEC on Chesapeake Energy Corp (NYSE:CHK), in which it reported significantly lowering its stake in the company.
Icahn Capital now holds 35.34 million common shares of the stock, which account for 4.55% of the outstanding shares
Nasdaq Fades After Strong Start; Apple Slumps, Small Caps Hold Up
Early gains faded for the major averages Monday as Wall Street prepped for the start of the two-day Fed meeting.
After a strong showing last week, Apple (AAPL) reversed lower in the Dow after JPMorgan came out with a note saying that reports last week of strong demand for the iPhone 7 are premature.
The Fed’s two-day policy meeting on Tuesday and Wednesday looms large. So does the Bank of Japan’s policy meeting, which is being held at the same time.
Continue reading on investors.com
Tape Reading the SPY ETF
$SPY volume gets 50% haircut.
A trading range, FOMC and BOJ tomorrow. Trade smart. $SPY gapped lower, held lower and has a ton of room to go lower.
Actively trading a tape like this ends careers and trading accounts die. When the stock market picks the next direction, and it will, be prepared for five days of momentum.
In the meantime, don’t accept risk, unless you see a perfect trade.
Could the market trade higher after the rate decision? Yes of course, but the upside potential to accept risk is lower for the $SPY (unless we trade to new all-time highs.)
The current trading environment calls for sector specific scanning.
Stocks in Play: $CHK research on finviz.com
$CHK NEWS: Chesapeake Energy slips as Icahn cuts stake to under 5%
Shares of Chesapeake Energy Corp. CHK, -6.02% declined in the extended session Monday after billionaire investor Carl Icahn cut his stake in the gas and oil exploration and production company.
Chesapeake Energy shares slipped 2.1% to $6.67 after hours. Icahn and associated partners reduced their stake in Chesapeake to 35.3 million shares, or 4.6% of outstanding shares, according to a Monday filing with the Securities and Exchange Commission.
Carl Icahn slashes Chesapeake Energy stake
Billionaire investor Carl Icahn has reduced his stake in Chesapeake Energy to 4.6 percent, according to a Monday filing.
Prior to the filing, the chairman of Icahn Enterprises had a 9.4 percent stake in the company.
“We believe that over the last few years Doug Lawler and his team have done an admirable job, especially in light of the circumstances. We reduced our position to recognize a capital loss for tax planning purposes,” Icahn said in a statement on his site.
Stocks to Trade 9-20-16 | Tuesday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: KORS, WNR, SRPT
Negative last 20 and 5 trading days | closed 2% lower from the open: mbly, khc, mur, juno, yelp, mon, epe, nov, cop, rcl, hes, rrc
Quarterly Order Flow:
Bullish Stocks to Trade: REN, TRGP, TSO, NVDA, FB, WDC, AAPL, BABA, WYNN, CLVS, FL,
Bearish Stocks to Trade: expe, cop<39, fslr, dltr, esrx, myl, tgt, crm, cost, xom, dg, ctsh, dis, low, vfc
2x Normal Volume: SRPT, EXPE
Inside days: xom, qcom, rrc, nem, stx, mo, cog, lgf, utx, fslr, ren