Today was a true selling day in the stock market coming on the heels of some suspect price action over the last couple weeks. It appears that for now, the easier money may be made by day traders who focus on shorting opportunities. Keep in mind, this can all change on a dime, and it is always good to pay attention to the tape during the trading day.
Later this week we have an all important employment report, which could put the market back on firmer footing. However, a weak report will likely lead to significantly more selling pressure.
Stay tuned!
www.bestdaytradingstocks.com
Showing posts with label Stocks. Show all posts
Showing posts with label Stocks. Show all posts
Tuesday, March 6, 2012
Monday, January 23, 2012
Top Day Trading Stock of the day
While the overall stock market went nowhere today, there were some good day trading opportunities. The best stock to day trade today, though, based on how we like to trade, was Noble Energy (NBL). This is a classic opening range breakout stock that never looked back.
www.bestdaytradingstocks.com
www.bestdaytradingstocks.com
Tuesday, January 3, 2012
Best Daytrading Stock - January 3, 2012
U.S. Stocks opened strongly to start the new trading year, but failed to build onto these gains, and closed a bit off the highs. As a result, the best performing daytrading stocks were highly focused in the oil and gas industry due to the strength in energy prices today, as crude oil closed up over $3 per barrel.
There were a number of stocks with gains in the 8 to 10% range today. Based upon our basic daytrading strategy, the one candidate that stood out is Nabors Industries, which closed with a nearly 10% gain. The intraday chart of this stock may be seen below. Our strategy would provide you with a gain of about $1 per share....not bad for a stock priced under $20!
www.bestdaytradingstocks.com
Wednesday, February 23, 2011
Stock Market Commentary
Yesterday was a true selling day for the market, with all of the averages down at least 1.5%. The reasons for the decline are of no matter. It is simply a warning shot that the market is due for a correction. I found it interesting that the futures pointed to a rebound early this morning, but slowly declined into the open, and now the market is down as I write this about 11 am. If there is follow through today, then yesterday's action suggests a correction is at hand. If another true selling day occurs within the next week, then the easier money will likely be made on the short side. For now, it is a good idea to consider both long and short trades when daytrading to hedge your bets.
Scott Cole
www.bestdaytradingstocks.com
Scott Cole
www.bestdaytradingstocks.com
Sunday, January 9, 2011
Weekly Stock Market Commentary
U.S. Stocks continued their march upward this week as the S&P 500 closed with a 1.1% gain on the week. Historically, as far as records have been kept, a 1% up move in the first week of the year has a 100% correlation to the market ending the year with a gain. This is according to CNBC. Of course, this is utterly worthless information. However, since this is also the third year in the presidential cycle, odds are in favor of a positive year as well.
In any event, all this suggests is that the current trend is up, and for daytraders, it makes most sense to stay on the side of the trend. I've seen over and over again in recent weeks how the market opens lower and closes higher than the open. Even if it is just a small gain or a small loss, the short sellers are getting grinded to death. At some point there will be a correction, however, at this point, it is not yet on the horizon.
One of the big trades on Friday was RBN. This is the kind of move that many daytraders miss. The stock gapped significantly at the open, and many daytraders simply like to fade this kind of gap. However, a more experienced trader would look at the daily chart and see a favorable set up for a big up move.
After the stock gapped higher, it moved significantly in the first five minutes. It is virtually impossible to try and scalp such a move. In fact, it would be foolish, because you would be leaving a lot on the table. Better daytraders and short term traders would look for a bigger move.
Based on our strategy, an entry point would have been somewhere just under $40. The stock closed at $41.18. The chart is below
Scott Cole
www.bestdaytradingstocks.com
In any event, all this suggests is that the current trend is up, and for daytraders, it makes most sense to stay on the side of the trend. I've seen over and over again in recent weeks how the market opens lower and closes higher than the open. Even if it is just a small gain or a small loss, the short sellers are getting grinded to death. At some point there will be a correction, however, at this point, it is not yet on the horizon.
One of the big trades on Friday was RBN. This is the kind of move that many daytraders miss. The stock gapped significantly at the open, and many daytraders simply like to fade this kind of gap. However, a more experienced trader would look at the daily chart and see a favorable set up for a big up move.
After the stock gapped higher, it moved significantly in the first five minutes. It is virtually impossible to try and scalp such a move. In fact, it would be foolish, because you would be leaving a lot on the table. Better daytraders and short term traders would look for a bigger move.
Based on our strategy, an entry point would have been somewhere just under $40. The stock closed at $41.18. The chart is below
Scott Cole
www.bestdaytradingstocks.com
Wednesday, July 7, 2010
Stocks Explode to the Upside
U.S. Stocks posted very strong gains today, with no particular reason for the move. Volume was slightly ahead of yesterday, and therefore I give this move some credibility. Stocks rose about 3% across the board today in the major market averages.
Stock index futures were initially suggesting a lower open, but as the market progressed, leading up to the open, they picked up some steam, and the train seemed to gain significant momentum throughout the day. This is the kind of trading day that suggests the possibility of a change in character for the market.
A check of the leading industry groups today indicates that real estate was the big winner on the day. Five of the top twenty groups were real estate related. Other strong performers included banks, technology and casinos.
Going forward, the market still has a big hill to climb to negate the recent downside breakout completely. If the market can push to a close above 1131 on the S&P, then you have a head and shoulders continuation pattern, which is bullish. Ultimately though, I still see a trading range market, but the range just got a bit wider.
Retail sales will be reported tomorrow for June, and that could put a damper on the market. An upside surprise will add to today's momentum.
For daytraders, the pickins could not have been easier. Opening range breakout systems worked beautifully during this move to the upside, since there was not a major upside gap in the major averages. The single best stock from the standpoint of its move for the day, and its volume was Omnivision Technologies. It rose over 11% on the day, and is a nice liquid stock. Check out the chart below.
Scott Cole
www.bestdaytradingstocks.com
Stock index futures were initially suggesting a lower open, but as the market progressed, leading up to the open, they picked up some steam, and the train seemed to gain significant momentum throughout the day. This is the kind of trading day that suggests the possibility of a change in character for the market.
A check of the leading industry groups today indicates that real estate was the big winner on the day. Five of the top twenty groups were real estate related. Other strong performers included banks, technology and casinos.
Going forward, the market still has a big hill to climb to negate the recent downside breakout completely. If the market can push to a close above 1131 on the S&P, then you have a head and shoulders continuation pattern, which is bullish. Ultimately though, I still see a trading range market, but the range just got a bit wider.
Retail sales will be reported tomorrow for June, and that could put a damper on the market. An upside surprise will add to today's momentum.
For daytraders, the pickins could not have been easier. Opening range breakout systems worked beautifully during this move to the upside, since there was not a major upside gap in the major averages. The single best stock from the standpoint of its move for the day, and its volume was Omnivision Technologies. It rose over 11% on the day, and is a nice liquid stock. Check out the chart below.
Scott Cole
www.bestdaytradingstocks.com
Tuesday, June 29, 2010
Stocks Get Hammered as Economic Worries Mount
U.S. Stocks fell sharply today as traders worried about the prospects of a double dip recession. The major averages closed anywhere from down 2.65% for the Dow Industrials to over 4% for the Dow Transports. Tech stocks really took it on the chin. The charts for the S&P 500 and Nasdaq averages look quite ominous, with large breakaway gaps appearing, and the lows of the day penetrating the June and February lows on the S&P 500. In fact, the S&P closed at its lowest level since last November.
This says to me that we have broken out to the downside. In all the other cases where the S&P tested the 1040 area this year, it actually closed above 1060 each time. Today, it closed at 1041 after trading as low as 1035. As such, the neckline is broken in my view, and the next major support area is 950. The only thing that can turn this around is a major upside surprise in the jobs data this week. If it comes in weak, look out below.
Scott Cole
www.bestdaytradingstocks.com
This says to me that we have broken out to the downside. In all the other cases where the S&P tested the 1040 area this year, it actually closed above 1060 each time. Today, it closed at 1041 after trading as low as 1035. As such, the neckline is broken in my view, and the next major support area is 950. The only thing that can turn this around is a major upside surprise in the jobs data this week. If it comes in weak, look out below.
Scott Cole
www.bestdaytradingstocks.com
Stocks To Open Sharply Lower Tuesday
U.S. Stocks are set to open significantly lower Tuesday morning after China reported slower economic growth than previously estimated. Dow Jones Industrial futures are lower by over 110 points as of 8:45 ET, while S&P 500 futures are lower by 14. This equates to 1% losses across the board.
China has been one of the bright spots in the global economy in the last year, but its stock market has plunged sharply, suggesting that the Chinese economy is set for a more significant slowdown. This would put a big dent in the global economic recovery prospects.
For daytraders, this lower open will signify a breakout from the trading range of the last two trading days. This could imply a significant move to the downside, so the easier money should be made on short positions.
Scott Cole
www.bestdaytradingstocks.com
China has been one of the bright spots in the global economy in the last year, but its stock market has plunged sharply, suggesting that the Chinese economy is set for a more significant slowdown. This would put a big dent in the global economic recovery prospects.
For daytraders, this lower open will signify a breakout from the trading range of the last two trading days. This could imply a significant move to the downside, so the easier money should be made on short positions.
Scott Cole
www.bestdaytradingstocks.com
Sunday, June 20, 2010
Weekly Stock Market Review
U.S. stocks closed modestly higher on Friday, but up nicely for the week overall. The major averages posted gains on the week ranging from about 2.3% to over 3% for the Nasdaq Composite. This was in spite of some weak economic data, particulary in housing. It is clear though that stocks are trading in line with the performance of the Euro, which was higher on the week. The Euro futures ended the week just under 1.24, after trading last week under 1.20. For now, the correlation is very strong, so be aware of any major weakness in the Euro.
Due to the strong performance of stocks over the last two weeks, many stocks have broken out to new highs. In fact, my list of high momentum stocks, based upon my current filters, has expanded quite a bit. This is an indication of a market that has some strength.
In the week ahead, we'll see some more important economic data, but the bottom line is that stocks will be most impacted by issues in Europe and the performance of the Euro.
As the market has generally been to the upside for a few days, the best daytrading opportunities are likely to the short side over the next couple of days.
Scott Cole
www.bestdaytradingstocks.com
Due to the strong performance of stocks over the last two weeks, many stocks have broken out to new highs. In fact, my list of high momentum stocks, based upon my current filters, has expanded quite a bit. This is an indication of a market that has some strength.
In the week ahead, we'll see some more important economic data, but the bottom line is that stocks will be most impacted by issues in Europe and the performance of the Euro.
As the market has generally been to the upside for a few days, the best daytrading opportunities are likely to the short side over the next couple of days.
Scott Cole
www.bestdaytradingstocks.com
Monday, June 14, 2010
Stocks end Monday Mixed
U.S. stocks closed mixed on Monday after trading higher early in the morning. The S&P 500 ran into resistance at about 1105, and subsequently pulled back to close modestly lower. Financial stocks apparently started heading lower midway through the trading day, and they ultimately lead the market off of its highs. While Dow Industrials and S&P 500 closed modestly lower, the Russell 2000 and Dow Transports managed decent gains on the session. The Nasdaq brothers were essentially flat on the session.
One issue affecting financials may have been another downgrade for Greek debt, which is now viewed as junk status.
Today's top industry groups included consumer services, textiles, sporting goods stores, music and video stores and recreational vehicles. I would say those are primarily economically sensitive groups, so more money is being bet on a recovery.
Important economic data such as new home sales, PPI and CPI are due out this week, and this is options and futures expiration this week, so watch for volatility.
Scott Cole
www.bestdaytradingstocks.com
One issue affecting financials may have been another downgrade for Greek debt, which is now viewed as junk status.
Today's top industry groups included consumer services, textiles, sporting goods stores, music and video stores and recreational vehicles. I would say those are primarily economically sensitive groups, so more money is being bet on a recovery.
Important economic data such as new home sales, PPI and CPI are due out this week, and this is options and futures expiration this week, so watch for volatility.
Scott Cole
www.bestdaytradingstocks.com
Sunday, June 13, 2010
Weekly Market Review
U.S. Stocks managed to close with modest gains on Friday, which allowed the market to have a positive close for the week. Among the major averages, the Dow Transports lead the way with a weekly gain of almost 4%. This compares to a gain of only 1.1% for the Nasdaq Composite. The Dow Industrials and S&P 500 were both up over 2% for the week.
Among the best performing industry groups for the week were the REITs as well as copper and silver mining stocks. All of these groups are a pure bet on economic recovery. With that in mind, it is a good idea to pay attention to these groups going forward.
This week we have a few important economic reports such as new home sales and the inflation data. This is also options and futures expiration week, so be aware of the potential for volatility.
Scott Cole
www.bestdaytradingstocks.com
Among the best performing industry groups for the week were the REITs as well as copper and silver mining stocks. All of these groups are a pure bet on economic recovery. With that in mind, it is a good idea to pay attention to these groups going forward.
This week we have a few important economic reports such as new home sales and the inflation data. This is also options and futures expiration week, so be aware of the potential for volatility.
Scott Cole
www.bestdaytradingstocks.com
Tuesday, June 1, 2010
Stock Market Commentary
U.S. Stocks closed lower on Tuesday after a volatile session that involved a 200 point range in the Dow. In actuality, the Dow Jones was the best performer of the major averages, which is not usually a good sign. While the Dow Jones sold off by a mere 1.1%, the Russell 2000 was down over 3%. Tech stocks helped the bigger averages, as Apple closed higher by $3.95 per share.
Energy stocks were the big losers of the day, especially the oil and gas drillers. Anything to do with energy that is pulled from the earth took it on the chin today, due to the news that BP's top kill strategy failed to slow the oil leak in the Gulf over the weekend. As a result, the oil and gas drillers as well as mining stocks were taken out to the woodshed. Many of these stocks have lost nearly 50% of their value since the oil rig explosion over a month ago. For day traders that look for short selling opportunities, these stocks and related ETFs have provided big gains in recent days.
Based upon today's action, it looks like the market will likely test the May 25 lows. This may take another week, but a less than stellar employment report on Friday could be the catalyst.
I noted on CNBC today that Art Cashin indicated that mutual fund cash levels are extremely low. As such, any mutual fund redemptions by investors will result in more stock selling.
Scott Cole
www.bestdaytradingstocks.com
Energy stocks were the big losers of the day, especially the oil and gas drillers. Anything to do with energy that is pulled from the earth took it on the chin today, due to the news that BP's top kill strategy failed to slow the oil leak in the Gulf over the weekend. As a result, the oil and gas drillers as well as mining stocks were taken out to the woodshed. Many of these stocks have lost nearly 50% of their value since the oil rig explosion over a month ago. For day traders that look for short selling opportunities, these stocks and related ETFs have provided big gains in recent days.
Based upon today's action, it looks like the market will likely test the May 25 lows. This may take another week, but a less than stellar employment report on Friday could be the catalyst.
I noted on CNBC today that Art Cashin indicated that mutual fund cash levels are extremely low. As such, any mutual fund redemptions by investors will result in more stock selling.
Scott Cole
www.bestdaytradingstocks.com
Tuesday, May 25, 2010
U.S. Stocks Set to Plunge at Open
U.S. stock markets are indicated over 2% lower this morning on concerns that North Korea is flexing its muscles in the east and fears that Europe is not getting its financial house in order. While North Korea is likely just playing games again, the 3-month LIBOR has been spiking higher in the last couple weeks, and is presently trading at 13 month highs. The S&P 500 looks to be breaking through more important levels on the downside this morning, which suggests there is more downside to come.
So, is this a correction in a new bull market dating to last year, or the resumption of a secular Bear Market that began in 2000? I believe it is the latter, which does not bode well for the economy.
Scott Cole
bestdaytradingstocks.com
So, is this a correction in a new bull market dating to last year, or the resumption of a secular Bear Market that began in 2000? I believe it is the latter, which does not bode well for the economy.
Scott Cole
bestdaytradingstocks.com
Thursday, May 20, 2010
Stocks to Open Sharply Lower
Stocks are set to open sharply lower this morning...more confusion out of Europe initiated the selling and now a weekly jobless claims number that rose 25,000 to 471,000 claims.
Scott Cole
Best Daytrading Stocks
Scott Cole
Best Daytrading Stocks
Wednesday, May 19, 2010
Shorts Still in Charge
Short sellers are still in charge of this stock market, but we may be due for a modest bounce here, before we test that freak low from two weeks ago. If you have to trade, be very careful with your long trades at this point. When the market is in a downtrend, it is best to take profits at the close in long positions.
Scott Cole
www.bestdaytradingstocks.com
Scott Cole
www.bestdaytradingstocks.com
Tuesday, December 1, 2009
Dollar Falls, Stocks Up, Again
Our favorite trade showed up again today as a weak Dollar led to solid gains in the U.S. Stock market. As usual, Gold was up sharply as well. All of the major averages posted nice gains today. However, most of the gains occurred in the first 30 minutes of trading, and the market was essentially range bound there after. Nonetheless, there were plenty of opportunities for day traders today. There were plenty of gap openings, plus, with Gold up, there were obvious opportunities in the gold stocks.
One interesting divergence in the marke though... Apple was down today. After opening up with the market, it closed much lower, and formed an outside trading day, a somewhat bearish configuration. It appears now that AMZN has clearly taken over the leadership of the Nasdaq.
Scott Cole www.bestdaytradingstocks.com
One interesting divergence in the marke though... Apple was down today. After opening up with the market, it closed much lower, and formed an outside trading day, a somewhat bearish configuration. It appears now that AMZN has clearly taken over the leadership of the Nasdaq.
Scott Cole www.bestdaytradingstocks.com
Sunday, November 29, 2009
Weekly Stock Market Review
Well, last week proved to be quite an interesting week for stocks. Normally, since it is a holiday week, there is seasonal favorability. The market got off to a good start on Monday, but failed to build on its gains over the next two sessions. Then, while we were enjoying the Thanksgiving holiday, turmoil erupted in the Middle East, as news out of Dubai suggested there may still be some hangover from the global real estate problems. Global stock markets were down sharply on Thursday, and opened lower on Friday. In the U.S., our markets needed to play a little catch up, and we opened down significantly, trading over 200 points to the down side on the Dow. But, it was a holiday shortened session with light volume, and the markets closed a bit off the lows.
We have a big week ahead. Early in the week we will see if there is any further fallout to the Dubai situation. Retailers will report how the official start to the holiday shopping season went. Then on Friday, there will be a new unemployment report, ahead of which President Obama is convening a jobs summit in an act of desperation to help out Democrats heading into the 2010 election cycle.
As usual, pay close attention to the Dollar. The strong correlation between Dollar weakness and stock market strength is still in place.
Scott Cole www.bestdaytradingstocks.com
We have a big week ahead. Early in the week we will see if there is any further fallout to the Dubai situation. Retailers will report how the official start to the holiday shopping season went. Then on Friday, there will be a new unemployment report, ahead of which President Obama is convening a jobs summit in an act of desperation to help out Democrats heading into the 2010 election cycle.
As usual, pay close attention to the Dollar. The strong correlation between Dollar weakness and stock market strength is still in place.
Scott Cole www.bestdaytradingstocks.com
Wednesday, November 25, 2009
Dollar Plunges, Stocks Barely Move
U.S. stocks ended the day barely to the upside, even as the Dollar was routed in Forex trading. The Dollar closed at 14 year lows against the Yen. The so called Yen carry trade has been fueling the rise in stocks since March, but they barely moved today. Commodities, on the other hand, enjoyed big gains...particularly in energies and precious metals. Gold was up $25 on the day at last check, trading at $1,191 in the cash market.
Sooner or later, stocks will start to not like such a weak dollar. It is also noted that there is tremendous correlation among most markets. As the dollar falls, stocks, bonds and gold have risen. Just imagine what will happen if there is any sort of spike in the Dollar caused by a potential geopolitical crisis, or if the Fed suddenly sees that it is time to start raising rates.
In my view, this is just another asset bubble. Even when stocks rise off of bear market lows, they never move as high, and as quickly as this market has.
Happy Thanksgiving!
Scott Cole www.bestdaytradingstocks.com
Sooner or later, stocks will start to not like such a weak dollar. It is also noted that there is tremendous correlation among most markets. As the dollar falls, stocks, bonds and gold have risen. Just imagine what will happen if there is any sort of spike in the Dollar caused by a potential geopolitical crisis, or if the Fed suddenly sees that it is time to start raising rates.
In my view, this is just another asset bubble. Even when stocks rise off of bear market lows, they never move as high, and as quickly as this market has.
Happy Thanksgiving!
Scott Cole www.bestdaytradingstocks.com
Monday, November 23, 2009
Dollar Falls, Stocks Rally, As Usual
U.S. Stocks opened strongly to the upside this morning, and held up all day, as the Dollar declined in Forex trading. Someone keeps on forgetting to turn off this broken record!
Another "as usual" though; volume was light. In fact, considering the size of the price move, volume was downright abysmal. Less money is going into these up days, and that can't be good. Volume will continue to lighten up the rest of this holiday week, and that can lead to increased volatility. As usual, pay attention to the Dollar.
The day proved to not be easy for daytraders, except very short term scalpers. Most of the big moves in individual stocks occurred in the first 30 minutes. After that, many stocks that traded nicely to the upside in the first half hour simply flattened out the rest of the day.
Scott Cole www.bestdaytradingstocks.com
Another "as usual" though; volume was light. In fact, considering the size of the price move, volume was downright abysmal. Less money is going into these up days, and that can't be good. Volume will continue to lighten up the rest of this holiday week, and that can lead to increased volatility. As usual, pay attention to the Dollar.
The day proved to not be easy for daytraders, except very short term scalpers. Most of the big moves in individual stocks occurred in the first 30 minutes. After that, many stocks that traded nicely to the upside in the first half hour simply flattened out the rest of the day.
Scott Cole www.bestdaytradingstocks.com
Sunday, November 22, 2009
Weekly Stock Market Review
As mentioned in my previous post this weekend, the U.S. stock market ended a quiet week on a quiet note on Friday. However, as we head into the holidays, we enter a pretty strong time frame for the stock market on a seasonal basis. Since we have had such as strong rally from the March lows, the market is actually significantly higher on the year. As a result, many fund managers have been left on the sidelines, missing much of this rally. You can bet that these fund managers will try to pile into stocks that have been leading the rally.
I suspect that many of the trends that have been in place during the bulk of this rally, such as a declining Dollar and rising commodity prices, will continue into the rest of the year. The leading industry groups continue to be Silver, Gold, metals/mining, and catalog businesses.
Heading into the Thanksgiving week, the market looks poised to make a move higher after a modest pullback over the last several trading days. I like the patterns I see on the major averages and many stocks in terms of setting up for a decent two or three day rally in the coming week. When you add to this that this is a seasonally favorable week, daytraders and short term swing traders should consider that the odds are likely in favor of the long side over the next several trading days.
There is one caveat to this little forecast, if you could call it that. If there is any significant weakness on Monday that carries the S&P 500 down below 1080, then I would anticipate further weakness.
Scott Cole www.bestdaytradingstocks.com
I suspect that many of the trends that have been in place during the bulk of this rally, such as a declining Dollar and rising commodity prices, will continue into the rest of the year. The leading industry groups continue to be Silver, Gold, metals/mining, and catalog businesses.
Heading into the Thanksgiving week, the market looks poised to make a move higher after a modest pullback over the last several trading days. I like the patterns I see on the major averages and many stocks in terms of setting up for a decent two or three day rally in the coming week. When you add to this that this is a seasonally favorable week, daytraders and short term swing traders should consider that the odds are likely in favor of the long side over the next several trading days.
There is one caveat to this little forecast, if you could call it that. If there is any significant weakness on Monday that carries the S&P 500 down below 1080, then I would anticipate further weakness.
Scott Cole www.bestdaytradingstocks.com
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