Short Term Trading Analysis – For June 14, 2016

Short Term Trading Analysis – For June 14, 2016

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I have decided to do short term trading. See my rational behind it:

Now comes the tricky part of identifying what securities I am going to pick for my trading.

If you are really interested in trading – you have to be willing to put in the time to understand the basics of how the markets work and what type of strategies are out there.  Otherwise, what you are doing is the same thing as what you would do at a Casino !

Some good introductory articles on day trading:

I did an analysis on the weekly outlook earlier:

Now, I want to see if there are any stocks I can pick for today.

  • I read a few before the bell summaries – I just read the 10 year yield on a German bond fell below zero for the first time. What does this mean? Keeping this aside for research latter.
  • Sunlife Financial – Seems to trade in a specific range. Always above $17 and under $45.
  • There are two technical indicators that are pointing to Brookfield Asset Management Inc being a good buy for short term trading. The price of BAM.A is currently $43.81. One Technical indicator is Engulfing Line ( Bullish) and the other one is an inside bar ( bullish).
  • I see that over the last three months the stock has not gone below $42.
  • The support line for the last 3 months is $43.36 and the resistance is $45.55. This is within the range I am looking to trade.
  • Now I am debating how much of my portfolio to put in. I am going to keep to a lower percentage since this is my first trade in some time and I want to keep my greed in check.
  • The market has been going down for 3 days now. Markets usually don’t go in one direction for many days in a row.
  • The stock (BAM.A) dropped about 3.86% yesterday.
  • I decided not to go ahead with this order today. Mainly because the more I read about its technical indicators the more bearish sentiments I see and I don’t fully understand all the technical indicators . Wanted to be on the safer side and not trade something I don’t fully understand ! Yay for maturity .
  • Conclusion : No stocks picked for trading for the 14th

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