Each morning before the market opens we outline a series of trading ideas. There is a written “game plan” to make it easier to follow along. We identify the best stocks to trade before the opening bell as this puts us in a better position to execute in the heat of the moment. Here is a screen cap of the stocks and key levels discussed in the meeting with charts and comments posted below. First section lists stocks with a fresh news catalyst. Second section are ideas developed from prior trading days’ observations.

TWTR was “In Play” with four top executives departing. It was gapping lower on the news and we identified to key levels of potential support. When the market opened it was below 17 so the focus was on 16.50 to see if it would bounce.

TYC announced a merger with JCI. I had identified 33 as resistance and when it failed to hold above this level on the Open my focus was short down to the 32 support area.

SBUX had reported earnings last week and failed at 59.40 for the 4th day in a row. We had that level to work with on the short side and decent support at 58 the prior two trading days. For short term traders identifying key support and resistance levels makes it easier to set stops and no when we are wrong.

Tomorrow I’ll post the video from the morning meeting that explains why I was leaning short in MCD and how that trade played out.

Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading education in stocks, options, forex and futures. He has traded professionally for 19 years. His email address is: [email protected].

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