One of the challenges unique to trading on days where you’ve had a big news event – like the Non-Farm Payroll report for June today – and then you have a significant “reaction” move in most stocks.
For today, most stocks I follow were RED out of the gate so I went into a specific mode where I begin noting stocks that are holding up well (this could mean they are RED, but down less than .5%). I usually let the reaction wave do its thing while I build this list, and then I will start making decisions on what stocks I want to trade – if any.
For today I noted the following looked to be holding up well out of the gate:
AAPL (Apple Inc)
V (Visa Inc)
CMG (Chipotle Mexican Grill)
I did trade AAPL for a long position and had it stop on a pullback through 358.
Another list I build on days like today is a list of stocks that get “extra” beaten up or show a lot worse selling pressure than I would expect. GOOG (Google) was one such stock and continues to be under selling pressure as we move into lunch time on the East coast.
A real surprise today was a trigger in PCYC (Pharmacyclics) that allowed me to add to a swing position. This stock had been putting in a new base (as noted here) and today has worked its way up through the 11 level on strong volume:
Notable strength at the moment are the casino stocks LVS WYNN as well the ag stocks like POT MOS MON.