Friday was perfect for day trading…
How did you do? Many stocks were above the 20 period exponential moving average on the daily chart. The $VIX was trending down, the $TRIN was trending lower. The $TICKS were positive and hitting plus 1,000. The SPY was above the open and giving continuation patterns. Most stocks were above the open, with room to go (offering profit potential).
This is about as good as it gets for us.
Many traders complain about exiting good trades too soon. If you did not capitalize on Friday, it’s a symptom of a bigger problem, it means you are not clear on what a great trade looks like. It means everything looks the same to you.
At some point, when everything lines up, you should have about 6 days a month where you jump out of your seat and say, “here it is…”
If that didn’t happen for you on Friday, I suggest you join us for live trading and mentoring. click here to learn more.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
The $SPY produced high volume trend days on Thursday and Friday, in opposite directions. The story has not changed for me. The upside potential in the general market is limited by the 2015 highs unless the FED steps in. I still like make stocks long but not the $SPY.
(click the chart for a full view)
- Green across the board Friday. About as technically perfect of a day trade environment as you can get.
- Energy still weak.
Charts in Focus
CAT forming a short-term head and shoulders top. This pattern is technically a trend reversal from uptrend to downtrend but this is a good example of digging deeper into price action. We are looking at price action failing to make a move higher with the right shoulder. This means a break of the “neck line” should lead to a new move lower to re-test $63.
(click the chart for a full view)
Stocks to Trade 12-7-15 | SPY Volume Surges
Relative weakness yesterday compared to the SPY positive change from the open: cf, nbl, gmcr, wpz, paa, wmb, clr, oke, ete, kmi
> 20sma | positive week | closed 2% higher from the open: RLYP, FIT, AEM, SWKS, EA, LUV, LLY, DLTR, AAL, PNC, TEVA, ACE, AAPL, CRUS, NFLX, JPM, MSFT, C, CRM, PG, HD, PM, V, MCD
<20sma, negative last 5 days and closed 2% lower from the open: cf, nbl, wpz, paa, wmb, clr, oke, ete, kmi
Bullish Ideas ATR/Volume/Price: LLY, DLTR, PNC, TAP, TEVA, ACE, NFLX, ADBE, CRM, HD, MMM, NKE, BA, VLO, COST, GOOGL, AMZN,
Bearish Ideas ATR/Volume/Price: clr, sm, hp, cf, etp, apc, rrc, dvn, hes, oxy, cop, car, cmi, lng, apa, cat, gme, akam,
Weak Stock Weak Close: oke, clr, wmb, paa, sm, wpz, nbl, se, hp, twtr, cf, bkd, feye, exc
Strong Stock Weak Close:
Weak Stock Strong Close: akam, celg, gild, gps, hot, m, stx, tmus, ua, xon
Strong Stock Strong Close: AEM, SCHW, LUV, MAT, LLY, DLTR, NVDA, STI, PNC, TEVA, JBL, ACE, CRUS, NFLX, MSFT, ROST, T, ADBE, C, CRM, PG, HD, PM, MCD, JD, TXN
20 day Breakdown: kmi, ete, oke, clr, wmb, sm, paa, wpz, nbl, mur, etp, apc, nfx, mos,
20 Day Breakout: RYLP, AEM, SWKS, LUV, LLY, DLTR, YUM, PNC, TEVA, ACE, CRUS, MSFT, ROST, ACN, PM, MCD, DD, TXN, AVGO, COST, DG, TSN
2x Normal Volume: RLYP, KMI, AMBA, ETE, NSC, ETP, PAA, UNP
Watch List Longs: AMGN, BMY, PNC, JPM, HD, PM, PRU, MCD, HON, VLO, COST, LUV, MSFT, ADBE, C, DOW, HD, DD, LOW, TXN
Watch List Short: bby, cop, hal, slb, axp, adm, m, lvs, akam
Inside days: pfe, csco, twtr, yhoo, baba, mrk, jd, mdt, dis, gild, vrx, abbv, abt, jnpr, jblu, coh, axp, adm, celg, urbn, aet, wm, wm, tmus, ccl, hca, gs, afl, mar, bidu, ups, amtd, psx, scty, xlnx, azn, payx, googl, sndk, incy, hot, hot, biib, dks, mbly, nue, len