Today’s Trading Lesson…
You know everyone thinks we’re crazy, right?
To most of the world, trading is a joke.
Trading isn’t a career. It isn’t a real job. It isn’t a way to have security.
Trading is a hobby, a diversion, a phase that’ll come and go. Sure, you can get licensed, but don’t count on that to make you any money. That’s no guarantee.
Try telling your family or friends or coworkers you want to quit your job and make money trading.
They’ll smile politely and ask, “Does anybody really make money from that?”
Yes, they want you to have dreams. Yes, they want you to chase them. Yes, they want you to succeed.
But they also want you to be “realistic.”
On the Tape Today...
$AAPL no surprise, sell the news. Especially because it was underwhelming (see chart)
$HD change of trend has confirmed. Sell-stop below $134 swing trade target is $125.
$NKE broke the up trend that started in June. I prefer to short a higher open today, preferable with a stop above $57. Target to cover is $55.
$GS a must watch, along with other financials. They are hovering near overdue breakouts. $GS has room to go to the $184 level.
$AAPL 9-9-16 (Click to Enlarge)
U.S. Futures Little Changed With S&P 500 Stuck in Two-Month Lull
U.S. index futures were little changed, with the S&P 500 Index heading for a ninth week of little movement. American shares slipped from near-record levels Thursday after European Central Bank President Mario Draghi downplayed the need for more stimulus measures to bolster growth.
The S&P 500 hasn’t posted a gain or loss of at least 1 percent since July 8, a streak of 43 consecutive days. It’s up just 0.1 percent in the holiday-shortened week.
The S&P 500 has been stuck in a tight range for most of the past two months, hovering near a record that it reached on Aug. 15 amid mixed economic data and speculation about the Federal Reserve’s policy on interest rates.
Stock Market Today: Heatmap of the S&P 500
Stock Trading Today 9-9-16 | $RH Earnings Beat
Stocks End Lower As Oil Rallies 5%; Apache Soars 14% In Two Sessions
Sellers dictated the action Friday, but the selling wasn’t intense after the European Central Bank, as expected, opted to leave interest rates unchanged.
The U.S. dollar reversed higher after a soft start and the euro faded from its early gains after Mario Draghi acknowledged the ECB did not discuss an extension of the bank’s current bond-buying program. Apple (AAPL) and Nike (NKE) lagged in the Dow, hurt by downgrades.
Shares of Apple slumped nearly 3% after Wells Fargo downgraded shares to market perform. Nike also gave up close to 3% on a Piper Jaffray downgrade to neutral. Retailers, miners, automakers and steel stocks lagged. Coal and oil/gas names outperformed. Oil prices soared after the Energy Information Administration reported that U.S. crude inventories fell by a huge 14.5 million barrels.
October WTI crude oil futures jumped $2.12, or 4.7%, to $47.60 a barrel.
Restoration Hardware (RH) reported better-than-expected second-quarter earnings and sales late Thursday, lifting shares of the upscale furnishings retailer and other stores after a bad day for many consumer stocks.
Restoration Hardware earned 44 cents a share, crushing views for 29 cents. Sales were $543.3 million vs. views for $511.1 million.
Tape Reading the SPY ETF
$SPY indecision candlesticks continue…
Song remains the same, but, the volume is on the rise. Not a good sign for the bulls.
If the market was pounding higher on increased volume the bulls would be in a good place. But that’s not what we see.
Higher volume trading ranges are accumulation or distribution. Money changing from smart hands to “others.”
I am not calling a top but this price/volume is different. You certainly do not want to be bidding every decline with aggressive share size. THe stock market needs to break out before we sift back into that type of trade management.
Stocks in Play: $RH research on finviz.com
$RH NEWS: Restoration Hardware Celebrates Solid Sales Gains
Home furnishings can be a lucrative niche in the retail business, but as Restoration Hardware (NYSE:RH) has found recently, it can be highly dependent on overall economic conditions.
Over the past year, Restoration Hardware has seen its stock plunge on concerns that its customer base has lost its ability to help drive the company’s future growth. Coming into Thursday’s fiscal second-quarter financial report, Restoration Hardware investors were prepared for another steep drop in earnings, but they hoped that sales would hold up relatively well.
The retailer actually did better than most had expected on its top line, and although it has more work to do before it can claim victory, many shareholders believe that Restoration Hardware is on track. Let’s take a closer look at the latest from Restoration Hardware, and what it means about its future.
Stocks to Trade 9-9-16 | Friday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: UAL, LN, MOMO, LNG, BHI, RRC, TRGP, SE, MUR, APA
Negative last 20 and 5 trading days | closed 2% lower from the open: ctsh, aet
Quarterly Order Flow:
Bullish Stocks to Trade: SM, BABA, APA, CLR, BIDU, APC, PXD, SE, YELP, UAL, EOG, GS, CHTR, FB, AMZN, COF, MPC, ADBE, KMX
Bearish Stocks to Trade: tsla, dg, cost, rcl, dltr
2x Normal Volume: SE, JCI, APA, CHTR
Inside days: jci, wfm, wdc, aal, wy, ual, nflx, stx, gps, twlo, dhi, utx, unp, jwn