The Priceline Group reports Q4 earnings February 27
Travel and restaurant reservation service provider The Priceline Group ( PCLN ) is scheduled to report its fourth-quarter numbers on February 27.
The company will report its quarterly results after the market close, with the consensus calling for $13.19 per share, up from $12.63 during the same period last year. The stock is up 10.3% on the year.
Priceline Stock Has a Lot to Prove on Monday
It’s time for Priceline Group (NASDAQ:PCLN) to observe the seatbelt sign and buckle up.
The online travel giant reports fresh financials after the market close on Monday, and at least one Wall Street pro is getting pumped about Priceline’s prospects.
Stocks Set To Open At Highs: Workday, Priceline In Buy Range With Earnings Due;
Trump Looms The Dow Jones industrial average eked out an 11th straight gain on Friday, its longest win streak in decades. The S&P 500 index starts at an all-time high this week while the Nasdaq composite is less than 1% from record levels, with Workday (WDAY) and Priceline (PCLN) reporting earnings late Monday.
Today’s Trading Lesson…
Chart Reading: The Problems and Limitations
Chart readers never fully grasp what they see which is why they never get past break-even. They go in circles for years looking for an answer that’s staring them in the face.
Chart reading is analysis. Tape reading is the money.
In the long-run, our edge is order flow but in the short-term stocks trade around saturation points. Areas where you can expect buying or selling to start or stop.
The closer your stock gets to a saturation point, you shouldn’t add more shares. The likelihood of follow through is lower, so you don’t add. It’s still a good long because you’re trading with the order flow, but it’s more of a cash flow play.
So we’re trading with the order flow, but trading around saturation points. I only add when my stocks are close to the value areas. If you can’t see these points on the tape, you’ll end up making too many break-even trades.. Break-even trades make break-even traders.
This is why a lower open in a strong stock is a great play. The opening price action is further from the saturation point, so your profit potential increases.
It sounds like you added to a stock later in the cycle… You shouldn’t have added. You need to know your saturation points to set the trade expectation. A good place to start is with your stock’s average true range.
The big picture was starting to get clear…
On the Tape Today | 2-27-17
KHC Kraft Heinz appears ready to bounce again after a wild six days of price action. With a newly formed swing low, planning for a $94 buy-stop and a target to sell of $97. Stop loss on a close below $93.
XOM Exxon Mobile continues to flirt with the $81 support level. Game planning a short sale at support, in a bullish stock market can be a tricky play, but that's why we use stop orders. If we don't get our price, we don't get in. Looking for an $79.75 sell-stop with a swing trade target to cover @ $74.25.
Tape Reading the SPY ETF
$SPY price action close near the highs proves that order flow is king. Market internals are basically neutral.
There remains no reason to look short. Yes, the profit-taking scenario continues to loom over the stock market, but that doesn’t mean to be a short-seller. Friday’s end of day price action was predictable.
What is your argument for a short? If you’re a student of trading history you know “it’s too high/gone too far,” is not a valid trading signal. It’s a recipe to get separated from your money.
If the stock market sees selling pressure, look for weak stocks, don’t short the strong ones.
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Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 2-27-17 | Monday Edition
Short-Term Trading Momentum
Bullish Momentum: RH, SRPT, JWN, KSS, NWL, STZ, BBY, DLTR, AKAO, LUV, FSLR, WDAY
Bearish Momentum: bidu, rrc, clr, oke
Quarterly Order Flow
Bullish Stocks to Trade: DISH, COST, HD, AMAT, ADKS, ABC, BA, CTSX, FB, IBM, AGN, SWKS, PRU, PNC
Bearish Stocks to Trade: rrc, clr, trip, pe, eqt, xom, yelp, kors, apa, gild
2x Normal Volume: RH, JWN, LOW, LB, PE, MBLY, BIDU, DLTR, FSLR, STZ
Inside days: csx, nem, kr, bby, abbv, bbt, apa, tjx, pep, mcd, hd, nflx, gsk, ntap, wba, pgr, hlt, googl