March 11th, 2017 09:03
Before I move on to some exciting updates about our mobile stock stories, I’d like to share my weekly thoughts on the market as a whole.
The market felt heavy this week as investors considered the probability of an interest rate hike confirmation at next week’s meeting.
Jobs crushed it!
ADP non-farm payrolls were much higher than expected. That unexpected strength in U.S. employment, reported this morning, has market makers on their toes and caused some intra-day volatility.
The likelihood that the Fed will announce a more expeditious schedule for interest rate hikes on Wednesday is greater with those strong jobs numbers. While the hikes are a sign of an economy that no longer needs to be propped up by a dovish Fed, investors use the opportunity to price those hikes in while taking some profits.
Even with some weakness this week, SPY continues to look strong. Yesterday’s candle became a morning star doji and today’s close was near the high and above the 8 ema (exponential moving average.) The pattern also looks like a J-hook is setting up which could mean rate hikes are priced in and markets are ready to continue moving higher.
The weekly chart put in a doji this past week which of course is indecision, so next week’s market will us tell us if bulls will continue to hold the reigns or if a deeper correction is in order. Since there was no significant distribution, however, it’s likely this week’s action gave SPY a little pause and the steam it needs to rally on.
Below is the daily SPY chart.
As some of you know, we have been posting early stage mobile stock stories, each of which shows you bite-size details of trade ideas as well as trading plans right on your smartphone.
Builders FirstSource, Inc. $BLDR
One example we posted was BLDR. This story was posted after the market close on February 27 for an entry on February 28. This story had an easy entry within the recommended range and was up for the day. The following day, it jumped, reaching target and closing for a profit of 9.96%. Below is the current chart for BLDR showing where the story plan entered.
While our scan is finding some great opportunities, it’s not a crystal ball and not all stories perform as well BLDR. However, story trading plans are setup so that targets are at least twice the distance as they are to stop losses. This way, the winning trades make twice as much as the losing trades lose, keeping them in profits overall.
Canadian Natural Resources Limited $CNQ
One of our recent stories that stopped out for a loss was CNQ. Scan detected moves that suggested the stock was ready to reverse to the upside. The story was posted on 3/3 for an entry on 3/4. The stock opened within the entry range but put in a bearish harami. The next two days took the stock down to the stop for a loss of 4.61%.
One story we posted on 3/8 was entered yesterday and is still active. The ticker is MDT. The position is up 1.08% from entry so far. Here is that chart.
Burlington Stores Inc. $BURL
Another winning story was BURL. We posted it on 2/22 for an entry on 2/23. It hit target and closed on 3/2 with a gain of 11.53%. Here is that chart showing our entry and exit dates.
By now you’re wondering where you can find these mobile stories with all that wonderful bite size goodness. We are still in the early stages, but if you’d like to be one of our beta testers with early access, simply click this link AlpacaScan Mobile Stories | Alpaca.
Gearing up for the weekend!
On a personal note, this ski season in the Sierra Nevada is something like the SPY. It’s not showing any signs of slowing down. My daughter has been teaching skiing this season and Sunday is her last day on the job, so we will be driving up tomorrow morning. After that, any ski weekend will be just for fun! The weather is calling for some serious spring conditions this weekend with highs nearing 50 degrees. I hope you all have an excellent weekend and get outside to enjoy some activities. It’s good for the soul and good for your trading. See you next week everyone!
The author, Danielle Spandau is a seasoned trader/investor and educator also known as The Trading Wife.
All information and/or opinions contained herein are impersonal, for informational purposes only, and do not constitute a solicitation or offer to sell securities or investment advisory services. The views and opinions expressed in this article are those only of the author(s) and do not necessarily reflect the opinions of Alpaca. If you are considering making an investment, you should consult with an investment professional.