Swing Trading: Larry Connors on Trading and The Business of Decision-Making
What do you do as a trader when the market falls by 200 points? What do you do when it rallies by more than 400?
As Larry Connors wrote in Short Term Trading Strategies That Work: A Quantified Guide To Trading Stocks and ETFs:
You may think you are in the business of trading. But in reality, you are in the business of decision-making! And the better you can make these decision ahead of time, the better your results will be – period.
Emphasis in the original. You can read “the original” in Chapter 14 of Short Term Trading Strategies That Work. If you don’t already own a copy, you can get one for free at the link below. Both digital download (pdf) and paperback versions of Short Term Trading Strategies That Work are available.
Here are 7 Stocks You Need to Know for Friday
Up nearly 16% and closing above its 5-day moving average for the first time since late July were shares of ^CSCO^ ahead of trading on Friday.
Leading the S&P 500 higher on Thursday, shares of ^NWSA^ rallied back above their 200-day moving average. NWSA finished up more than 18%.
Many of the biggest gains by sector were in the financials, with stocks like ^MS^ up more than 10% and ^BAC^, which closed higher by more than 6%.
Note that both stocks are trading below their 200-day moving averages, but are not yet back in overbought territory despite sizable gains on Thursday.
By comparison, credit card companies like ^MA^ and ^V^ gained more than 7% and 6% respectively to finish above their 5-day moving averages ahead of Friday’s session. Of the two, Visa had become more oversold during the recent sell-off. But both stocks remained above their 200-day moving averages.
Scheduled to announce quarterly earnings on Friday, shares of ^JCP^ rallied by nearly 6% in Thursday’s session. The retailer has been trading below its 200-day moving average consistently since early July.
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David Penn is Editor in Chief of TradingMarkets.com