Today’s Trading Education…
“The true risk in a trade in the quality of your idea…
Great traders aren’t smarter than you, they simple make better decisions with the same information. If you’re struggling to get past break-even… and stay there… you most likely have a problem with structure and discipline.
Traders need structure and rules, you must know what a Perfect Trade looks like, otherwise every trade looks the same. How can you possibly know when to get aggressive, when to trade for cash flow and when to do nothing, if every trade looks the same?
Today’s video shows you three crucial components for success. Learn the foundation for spotting high probability trades.
On the Tape Today...
$NFLX weak close and heavy volume shows a fuel candlestick. Sell-short below $95 with a target to over @ $91. (see chart)
$DIS bear flag & heavy volume implies a short-term bottom. Short with a tight stop, don't get stuck in a short-covering rally.
$FDX gap and go on earnings. Remain long if above $173.50. Below that profit taking come in.
$WDC $56.50 buy-stop with a target to sell @ $61. Good for multiple day trades or a swing trade.
$NFLX 9-22-16 (Click to Enlarge)
U.S. stocks set to rise for a third straight day as Fed seen cheering traders
U.S. stock futures inched higher early Thursday, putting markets on track to build on the prior day’s gains, which came after the Federal Reserve’s latest update on monetary policy.
The Fed stood pat on interest rates on Wednesday, but Chairwoman Janet Yellen indicated an interest rate hike is likely by year’s end as she expressed confidence in the U.S. economy.
”The fact we saw no change [in U.S. interest rates] certainly gave equity markets something to cheer,” said Jamieson Blake, retail sales manager at ADS Securities, in note. A low-rate environment has been boosting stocks and other riskier assets for years.
Continue reading on marketwatch.com
Bed Bath & Beyond shares fall on company’s EPS miss
Bed Bath & Beyond Inc. BBBY, +0.14% shares fell 2.9% late Wednesday after the retailer reported second-quarter per-share earnings below expectations.
Bed Bath & Beyond said it earned $167.3 million, or $1.11 a share, compared with $201.7 million, or $1.21 a share, in the year-ago period. READ MORE BBY
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-22-16 | $YHOO Data Breach
Nasdaq Hits High As Fed Stays Low; FedEx, Adobe Soar On Earnings
The major market indexes closed near session highs after the Federal Reserve left interest rates unchanged despite a pickup in the U.S. economy.
Oil surged, while earnings beats fueled big moves by FedEx (FDX) and Adobe Systems (ADBE).
FedEx gapped up and soared 6.9% to a 52-week high in fast turnover. After the close Tuesday, the package shipper delivered fiscal Q1 results that topped views on both the top and bottom lines.
Adobe gapped up and surged 7.1% to a record best. It’s now extended from a pullback to the 50-day moving average. The desktop software maker reported quarterly results late Tuesday that beat views and boosted its Q4 EPS guidance above Street forecasts.
Netflix (NFLX) tumbled 3.4%, falling below its 50-day line in heavy trade. The media streaming company will likely miss Q3 subscriber targets as churn rises, according to an M Science report. Shares are also below the 200-day line and are 29% off their 52-week high.
Yahoo | $YHOO is expected to confirm massive data breach, impacting hundreds of millions of users.
A hacker named “Peace” is bringing chaos to the Internet giant just as its sale to Verizon is pending.
Yahoo is poised to confirm a massive data breach of its service, according to several sources close to the situation, hacking that has exposed several hundred million user accounts.
While sources were unspecific about the extent of the incursion, since there is the likelihood of government investigations and legal action related to the breach, they noted that it is widespread and serious. READ MORE– >>
Tape Reading the SPY ETF
$SPY bounce off FOMC announcement doesn’t have much room to go. We remain stock specific. The $217 area remains the level to watch. NASDAQ broke to new all-time highs, but the $SPY and $DJIA did not.
So we also have non-confirmation, based on Down Theory. I want to be clear on my recent calls for distribution. A heavy volume pause is a change of trend. A change of trend takes time, smart traders can make the distinction between momentum and order flow.
If you’re swing trading or day trading, our short-term edge is minimal at best from the market. Great traders understand when to push leverage and when to hold longer. Great traders know when to trade for cash flow.
We are in cash flow mode.
Stocks in Play: $YHOO research on finviz.com
$YHOO NEWS: Yahoo to admit to data breach
Yahoo Inc. this week is expected to confirm a data breach that exposed several hundred million user accounts, according to a Recode report citing unnamed sources.
The confirmation would come after a hacker known as “Peace” claimed last month to have details for about 200 million Yahoo accounts.
Stocks to Trade 9-22-16 | Thursday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: TWLO, APA, BIDU, APC, BABA, TRGP, PXD, CHTR, EOG, WDC, NVDA, NEE, DUK, CCI
Negative last 20 and 5 trading days | closed 2% lower from the open: nflx
Quarterly Order Flow:
Bullish Stocks to Trade: TWLO, ADBE, APA, BIDU, APC, BABA, TRGP, CHTR, WDC, NVDA, AMZN, FB, AAPL
Bearish Stocks to Trade: aal, dis, lulu, viab, len, cbs, dltr, cvs, cost, hain, dg, xom, bmy, ctsh, low, hes
2x Normal Volume: PG, MAR, CLVS, HOG, VIAB, ADBE, SRPT, RRC, APA, BIDU, KMX, LEN
Inside days: mar, gild, bmy, mpc, dks, dfs, axp, ntap, lvs, dg, fslr, vmw, tjx, mbly, de, kors, gme