Basic trading guidelines to help in your research:
Basic buying times: After buyers hype from 9:30 to 10:30 am EST (avoid Bull Trap). Some times it is best to pause (take a deep breath) before placing a buy order to avoid getting hurt by a spike up then sharp downturn. After a morning sell off the stocks generally bounce up between 11:00 and 12:30 am EST. In the morning asap if the overseas markets are trending up on good news. Make a note of sector news – bad news can drag every stock in the sector down creating buying opportunities. Watch for up trends and volume spikes in the afternoon – up trends will generally carry thru to the morning of the next day. Prior to earnings release on a bullish earning whisper or day before earnings release look at pivot to help your decision. Watch for peers or sector news for indications of earnings trends. Watch for bounce after earnings release drop.
Basic selling times: Between market open and 9:45 am EST on buyers hype. As soon as the markets open when there is bad news in the overseas markets and those indexes move down. Make a note of sector news – good news in a sector is a great time to sell a stock that rose on sector news. Watch for for drops in the market prior to close on an up trend day after 2:00 pm EST. Watch for down trends and volume spikes in the afternoon. Down trends will generally carry thru to the morning of the next day. Day of earnings beat results sell on am spike. Look for company earnings news change as it gets closer to earnings release to help avoid poor results drop in price because articles tend to be overly positive in weeks leading up to earnings date. Also check insider trading activity for recent selling activity which could signal a need for a cautious approach to earnings release. Any doubt take profits before earnings announcement. If big drop in price after earnings announcement look for possible bounce up in price. Look for company earnings news change as it gets closer to earnings release to help avoid poor results drop in price because articles tend to be overly positive in weeks leading up to earnings date. Also check insider trading activity for recent selling activity which could signal a need for a cautious approach to earnings release. Any doubt take profits before earnings announcement. If big drop in price after earnings announcement look for possible bounce up in price. Warning: Inexperienced traders will be less likely to lose on a trade due to volatility if they avoid trading in the morning or the afternoon. The middle of the day around 12:00 to 1:00 pm EST is the most stable time for prices. Check the risk rating of your stock. Be careful of volatile multiple price dips and rises – don’t wait to get caught by the big drop. Before close of trading day (especially in a volatile market) look at sources provided by your trading software or sources similar to Tradingday.com for a stock and its group trend. This may help you decide to hold, buy or sell your stock.
Daily Market Comment: Click button below for commentary from premarket to close of markets.
Summary of Week Ending 12/13/2024:
Markets ended the week mixed. The Dow closed down -814 points -1.8% for the week closing at 43,828 points. The Nasdaq closed up +67 points +0.3% for the week closing at 19,927 points. The S&P 500 closed down -39 points -0.6% for the week closing at 6,051 points.
Week Beginning 12/16/2024 Market Comments:
The US equities are under some pressure from continued uneven economic reports, US debt and trade issues. The continued financial and geopolitical instability in Ukraine, Middle East, Asia and Russia has caused volatility in the world markets. The markets will be watching for further U.S. economic events week beginning 12/16/2024: NY Empire State Manufacturing Index, SP Composite PMI, SP Manufacturing PMI, SP Service PMI, Retail Sales, Industrial Production, Business Inventories, NAHB HMI, Retail Inventories,Building Permits, Current Account, House starts, EIA Crude Oil Inventories, Fed Rate Decision, FOMC, Powell Speaks, GDP, Jobless Claims, Philadelphia Fed Manufacturing Index, Existing Home Sales, Net Long Term TIC Flows, PCE Price Index, Personal Spending and Consumer Sentiment.
