The mentoring question of the day is… “To be long, or not to be long…”
Great traders, profitable day traders, trade with a longer-term bias. They don’t sweat the wiggles and juggles because they have learned joining the big money is the correct play, always.
However, we get a morning like today, where the short-sale has lower probability, but the long is not the right play (for most of the stocks you would normally trade.)
So what do you do?
The first thing is to game plan a list of stocks that are already in up trends. These are the first trades to consider today. Then we filter out stocks that closed strong yesterday in a weak market. They are showing relative strength. If they are above the 20 ema on the daily chart, all the better.
Last but not least you have you “go-to” day trading stocks. Such as FB, AMZN, TSLA, NFLX, AAPL, GS. If they are positive from the open, positive from the close, you can give them a look for a momentum type trade (exit do not add into momentum).
Be definite. We should have some good trades heading into the weekend.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
SPY is set for a higher open. This doesn’t mean you should be a buyer. classic tape reading says the first push lower off the higher open would be a short-term buy.
(click the chart for a full view)
- Oversold bounce. Many stocks showing capitulation at the close yesterday. If the first push off the higher open is lower, that sets up a better long than the higher open (7am).
- The jobs report this morning could give an extra boost to the aggressive bulls who bought the close last night.
Technical Analysis | Charts of Interest
ANF showing a clear head and shoulders bottom with a neckline break @ 22. This is the first pause after the momentum move confirming the new uptrend. a solid buying setup.
(click the chart for a full view)
Stocks to Trade 1-8-16 | Global Markets Oversold Bounce
> 20sma | positive the last 5 days | closed 2% higher from the open: AEM, BXLT, KSS, RRC, TMUS, TWX, VLO, WMT
< 20sma | negative last 5 days | closed 2% lower from the open: caiq, qunr, wmb, wynn, lvs, amba, apc, wpz, etp, gpro, feye, thc, dvn, yhoo, bwa, fit, car, lng, dlph, nxpi, tel, qcom, c, cyh, vrx, cf, ual, akam, stt, lenm aapl, jci, mos
Bullish Ideas ATR/Volume/Price: BXLT, FSLR, NEE, VLO,
Bearish Ideas ATR/Volume/Price: rlyp, wynn, lvs, apc, etp, thc, dvn, fit, lng, ilmn, cof, cf, ual, stt, nwl, aapl, ba, hot, yum, gs, swks, cop, mar, eog, bhi, pnc, kmx, mmm, unp, slb, psx, ups, ibm, wdc, cvs,
Weak Stock Weak Close: csiq, rlyp, qunr, wmb, wynn, lvs, amba, apc, etp, thc, dvn, yhoo, bwa, fit, car, lng, dlph, nxpi, qcom, aer, c, cyh, cf, ual, akam, stt, nwl, len, aapl, ba, jci, mos,
Strong Stock Weak Close: FSLR, HCN, WSH
Weak Stock Strong Close: mbly, dks, grub, bby, jwn, hfc
Strong Stock Strong Close: AEM, BXLT, ANF, VLO, TMUS, MAT
20 day Breakdown: rlyp, lvs, apc, dvn, fit, jd, bidu, dlph, mdlz, tel, aer, c, cof, fb, cf, akam, len, aapl, ba, met, pru, jpm, jci, amzn, cvx, msft, yum, txn, abc, gs, wfc, hd, crm, kmx
20 Day Breakout: AEM, AET, BXLT, KSS, TGT, TMUS, TWX, WMT
2x Normal Volume: WSH, C, WMT, TWX, MDLZ, M, FIT, MET, APC, LVS, HD, WBA, TGT, BXLT, MBLY, JWN, PAYX, KMX, MAR, RLYP, PSX, CRM, COF, NUE, PXD, BBY, CSIQ, DLPH
Watch List Longs: WMT, VLO, KSS, AET, TGT, PM, MO, MCD
Watch List Short: cof, ms, met, cvx, unh, cop, bhi, abt, all, slb, axp, dis, wynn, lvs, mgm, tol, ntap, c, akam, len, dow, jnpr,
Inside days: d, wm, rai, duk