Other than the jobs data today, it’s tough to make a case for trading stocks today.
Summer trading officially comes to a close today. This was a great summer to trade, especially August. Volatility was consistent and news was fresh.
Trading jobs data Labor Day weekend seems a fitting way to end it. Be careful with your risk after the first two hours today, volume can be very light.
Stock Market Today: Map of the S&P 500
(click the map for a full view)
The SPY filled the gap but traded a little higher than expected. The bears took control trading into the close. Today we have the official last summer Friday and are left with trading jobs data into Labor Day weekend. Expect volume to be light after the first two hours of trading.
(click the chart for a full view)
Stocks to Trade | Friday September 4, 2015
- The stock market seems to be trading into a nice flow of buying and selling order flow.
- The moving averages on the daily charts are still messed up when trying to run scans but if you dig deeper without the 20sma on the chart there are plenty of good trade setups.
- We have the potential for a volatile close but I don’t think it will be one with high probability trades. That is unless we are in a solid downtrend for the day and we accelerate into the close.
Charts in Focus
NFLX is poised to trade below $100 today (7am) despite the bulls best efforts to hold it above the last few days. Is the head and shoulders top pattern enough to begin a new trend lower? It will be tough to establish a solid reward potential because we are set to open at $96 which is close to a 50% fib level if you use the April low to August high.
(click the chart for a full view)
Earnings in play today > 1M avg shares:
Stocks that showed relative STRENGTH– contra to the SPY Negative change from the open on 9/3/15: VIAB, LVS, LB, TERP, WYNN, CF, QRVO, OIS, WDC, CRZO, SPWR, CCP
Above the 20sma and closed 2% higher from the open: (not necessarily all longs, but stocks to note for the price action of strong close from the open and above the 20sma) VIAB, LB, QRVO, OIS, WDC, CRZO
Bullish Ideas ATR/Volume/Price: TJX, HD, TWC, HFC, UA,
Bearish Ideas ATR/Volume/Price: gpro, amba, fit, wynn, juno, qihu, cybr, vtr, feye, adsk, lvs, dltr, bidu, myl, dvn, mjn, mdt, twx, mrk, lng, nbl, nee, pg, mur, slb, nsc, apc, hal, cvx, mon, duk, hp, clr, cat, apa, xom,
Weak Stock Weak Close: gpro, amba, jd, juno, cybr, feye, myl, mdt, lng,
Strong Stock Weak Close: DAL
Weak Stock Strong Close: antm, bbt, bx, cf, cl, coh, ctl, disca, lvs, hlt, mchp, mos, pot, terp, wynn, yhoo
Strong Stock Strong Close: TSN, CVC, TWC, CDNS, GIS, RAI,
20 day Breakdown: gpro
20 Day Breakout: bby
2x Normal Volume: CIEN, DOW, IR, DLTR, HRB, NBL
Watch List Longs: BBY, TJX, AKAM, HD
Watch List Short: kss, amgn, ms, met, wmt, mrk, bmy, adm, jnj, ko, slb, all, hal, cvx, xom, axp, wynn, lvs, m, qcom, emc, sndk, txn, dd, klac, lltc,
Inside days: hrb, dltr, nbl, fe, dg, cvx, nee, rost, stt, uri, jd, nov, ctr, fb, xlnx, hcn, duk, qihu, cop
Trading Jobs Data Labor Day Weekend | September 4
Here’s What Friday’s Jobs Data Could Do To Markets
On Friday, the United States is set to put out its August employment report, an economic release that markets will be watching closely.
The report itself is only a small piece of the overall picture of the U.S.’ health, but the report is likely to make waves in the markets as recent turmoil has made investors increasingly sensitive. Most are expecting to see positive figures, with employers adding 220,000 jobs and the unemployment rate falling from 5.3 percent to 5.2 percent.
One of the major reasons that traders are interested in this Friday’s report is because of the U.S. Federal Reserve. Estimates regarding the bank’s plans for a rate hike have been thrown off in recent weeks as markets wonder whether or not the slowdown in China and volatility in U.S. markets will cause the bank to push back its tightening plans.
Related Link: Indeed Chief Economist Tara Sinclair’s View Of Friday’s Jobs Report
Although many believe that the bank is no longer considering a September rate increase, some say that the jobs data could be enough to push the bank to move. A strong jobs report would add to the case for policy tightening, but most analysts believe that worries about inflation will keep the bank from raising rates until later in the year
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