Today’s Trading Lesson…
Discipline is good, discipline is smart, discipline nearly drained my account.
Get a plan! You need a trading plan! My trading plan was a recipe for getting stopped out of every trade. I
guess this is what a punching bag feels like. I’m following the “rules,” but I’m still losing money.
My friend Bobby who was a NASDAQ market maker for First Boston gave me a clue.
He said “Learn to work the order a little but be disciplined in your risk management.
Never lose more than you planned, but don’t be stubborn with your entries or you’ll drive yourself crazy and get stopped out of every trade.
As long as the tape is obvious, work the order. My institutional clients scale in and scale out, learn to do the same “
On the Tape Today...
$ROST solid bullish day on Friday. No obvious trend but we can look for one more day of buying (see chart)
$DIS below $95 has room to go, $91.15 the first target for a short sale.
$GS, $C, JPM, take your pick for a short sale
$ED, AEP, XEL utilities aren't a sexy, but if you don't like to short they are worth a look.
$ROST6-27-16 (Click to Enlarge)
U.S. stocks set for losses as Brexit backlash continues
Wall Street was set for another downbeat session on Monday, as shock waves from the U.K.’s Brexit vote last week continued to chill the investing mood in global financial markets.
The losses follow a major selloff on Friday, when investors shunned anything considered a risky asset. The selloff came after the U.K. unexpectedly voted to leave the European Union, which it has been a member of for 43 years.
“There is little doubt that global monetary policy will have to adjust to this historic decision, and with markets now pricing in a 50% chance of a July rate cut from the [Bank of England], the idea of a [Federal Reserve] rate hike appears dead in the water,” said Joshua Mahony, market analyst at IG, in a note.
Fed Chairwoman Janet Yellen said ahead of Thursday’s historic referendum in the U.K. that a Brexit was one of the risks facing the global economy that could justify a cautious approach to raising interest rates. According to the CME Fed Watch tool, there’s currently a 0% probability of a Fed rate hike in July.
Continue Reading on MarketWatch.com
Stock Market Today: Heatmap of the S&P 500
Stocks to Trade 6-27-16 | $MO Bullish Breakout
Shocking Brexit Outcome Roils Stocks; Apple, Boeing, Banks Slam Dow
U.S. stocks followed overseas markets sharply lower Friday in reaction to Britain’s shocking decision to exit the European Union. Apple (AAPL), Goldman Sachs (GS) and JPMorgan (JPM) sold off hard in the Dow industrials.
The Nasdaq led the sell-off with a 4.1% drop, while the S&P 500 tumbled 3.6%, and the Dow Jones industrial average shed 3.4%. All three indexes were showed weekly losses of nearly 2%. Volume for the session swelled across the board vs. Thursday, according to preliminary data.
Losers swamped winners by about a 5-1 margin on the NYSE and by 6-to-1 on the Nasdaq. The Dow was a sea of red, with losses of about 7% apiece from Goldman Sachs, JPMorgan and Caterpillar (CAT). American Express (AXP), Boeing (BA), Cisco Systems (CSCO) and IBM (IBM) sank over 5% each. Apple weighed heavily on all three indexes as it gapped down to sink 3% in brisk trade.
West Texas Intermediate crude sank 5% to $47.60 a barrel, while gold prices soared nearly 5% to $1,321.70 an ounce. The 10-year Treasury yield fell 18 basis points to 1.57%.
Continue reading on investors.com
Tape Reading the SPY ETF
$SPY continuing lower pre market (7 am). The open below the important 200 sma ($202.13) and below Friday’s lows puts traders in a position to look for a spot to bid after the first push lower.
If the first push off the open price is higher, be careful bidding, we want a push lower off the open to exhaust the sellers.
** A quick software tip: most charts and watch lists have the capability to put the open price or change form the open as an indicator or column. I recommend you start using this immediately, especially today when we are looking for today’s order flow. This tool gives you a quick reading for stocks showing relative strength or weakness. The change from yesterday’s close is not what day traders should be looking for today.
Stocks in Play: $MO research on finviz.com
$MO NEWS: Here’s Why Altria (MO) Stock Is Higher Today
NEW YORK (TheStreet) — Altria (MO) stock is gaining 2.19% to $67.76 on heavy trading volume on Friday afternoon amid an overall market selloff as tobacco companies attract investors seeking a safe haven after the U.K. decided to exit the European Union.
“With Brexit potentially delaying an (interest) rate hike in the U.S., this move likely favors our higher-yielding names, and in particular U.S. tobacco,” Cowen & Co analysts said in a note, Reuters reports. “We expect that investors will view global tobacco as a relatively safe haven in a risk-off environment.”
Shares of Winston-Salem, NC-based Reynolds American (RAI) are rising 1.67% to $51.69 this afternoon, but shares of Phillip Morris (PM) are down 3.73% to $98.10 because of the company’s international exposure.
Continue reading on thestreet.com
Stocks to Trade 6-27-16 | Monday Edition
Short-Term Trading Momentum:
Positive the last 20 and 5 trading days | closed 2% higher from the open: ED, SWHC, ROST, DG, CCI, CNC, OKE, WPZ, NFX, CNQ, SLCA
Negative last 20 and 5 trading days | closed 2% lower from the open: lnc, dlph, wynn, rcl, ual, vrx, swks, gpn, hes, avgo, viab, ibm, lyb
Quarterly Order Flow:
Bullish Stocks to Trade: AEM, DG, DLTR, CNC, UNH, LULU, CLR
Bearish Stocks to Trade: lnc, dlph, rcl, ual, nxpi, expe, gs, cof, lyb, alk, amgn, gild, bidu, aapl, ctrp, tsla, kmx
2x Normal Volume: unp, ual, cat, nxpi, wba, acad, ba, gs, ibm, ma, cof, amzn, lyb, acn, pru, avgo
Inside days: bbby, lgf, qihu