Archive for April 2009

“V” Right on the Open – Where I Want to Be

Apr 30th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
We saw it again.  We have seen this in QCOM, MSFT, and now V.  Right on the Open V traded straight up. If I told you I had a three point trade in less than 15 minutes that reoccurs would you be interested?  As an intraday trader this is a trade you must add to your quiver.  Let's discuss. I hear it all the time. "Bella that stock was too scary." "Bella that stock was too steep." "I missed that move because I was trading PG." "Bella I do not like to trade on the Open." "Bella I like to wait 15 minutes until the market settles." These are all excuses to miss a great up move right on the Open in QCOM, MSFT , and today Read more [...]

SMB on CNBC’s Fast Money Tonight

Apr 30th, 2009 | By | Category: General Comments, Jeff Tomasulo's Blogs
Our very own Jeff Tomasulo, senior trader at SMB Capital, will be a guest on CNBC's Fast Money tonight from 5-6pm. Jeff will discuss which financials to watch with the upcoming bank stress test results. Jeff has been trading professionally for over thirteen years. We hope you catch Jeff on CNBC. Watch the clip here and feel free to ask him follow up questions about his appearance by leaving comments on this blog Best of luck with your trading! Don't forget to follow us on twitter. Read more [...]

The Advantage of In Play Stocks

Apr 29th, 2009 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
I have written extensively since our blog began regarding "In Play" stocks.  During earnings season there are many In Play stocks to choose from each day.  Traders should choose no more than two or three of these stocks each day to focus on.  This is the case because you can make a lot more money trading one or two stocks well than trading many stocks poorly. Prior to the start of earnings season I was trading FAZ almost every day.  But I made it clear to our desk that once earnings season began my focus would change to stocks with fresh news.  This is where a skilled trader's edge exists.  The increased order flow in stocks Read more [...]


Apr 29th, 2009 | By | Category: General Comments, Jeff Tomasulo's Blogs
Jeff Tomasulo, senior trader at SMB Capital, appeared today on CNBC's Fast Money Halftime Report. Watch the clip here and leave your comments on this blog. Best of luck with your trading! Don't forget to follow us on twitter. Read more [...]

My FOMC Game Plan

Apr 28th, 2009 | By | Category: General Comments
 Below are the last two FOMC statements: January 28, 2009 March 18, 2009 The most important part of the minutes will be the wording.  The rates won't be cut (we're already at our lowest rate) and they won't be raised (we're in the middle of a deflationary cycle where raising interest rates would kill any hope of a recovery and send us for sure into a second depression).  So that leaves the wording. If you look at the 3rd paragraph of the March 18th release, they discuss actual numbers for the programs they plan to implement.  Up until that point, we had no idea how big the programs were going to be.  They Read more [...]

The Market Does Not Have to Be Fair

Apr 28th, 2009 | By | Category: Mike Bellafiore's (Bella's) Blogs
I got caught in the DNDN downmove today. DNDN traded down 15 points in 40 seconds. Then DNDN was halted. We are waiting for it to reopen. I was long a core position in DNDN from 24.43. This was support. DNDN was trading strongly. It traded down from 24.75 to 24.32 where I bought some more. DNDN was not trading below 24.43. It traded quickly down to 24.15 where I bought some more. I was scaling into the 24 level. I did not think it could trade below 24 when I bought some more. Ripper. You must live to play another day. DNDN had no business trading below 24. But when it did I was too slow to exit. I should have Read more [...]

Learning From Other Traders

Apr 27th, 2009 | By | Category: Gilbert Mendez's (Gman's) Blogs
New traders at SMB can learn from themselves, their mentor and their peers. Here at SMB we have many guys that are obsessed with trading. Every chance we get, we talk about different plays, how we traded them, how much size we thought was reasonable, and how we could have traded that play differently. I want to highlight the importance of talking trading with your peers whether they are new to trading or have done this for a while. A new trader will find that a well executed play by a peer on their class is easily remembered compared to hearing about it from an experienced guy. Seriously, imagine watching a guy who just started Read more [...]

The Week That Was: April 20 – 24

Apr 26th, 2009 | By | Category: General Comments
Well what looked like was going to be a week for the bears ended up being a pretty good week for he bulls.  Let's keep an eye on that 88 level in the SPY, as it looks like it's going to come into play again this upcoming week. The dollar index looks like it is breaking down from a bear flag.  This is definitely something to keep an eye on, as a weaker dollar will lead to strength in commodities, particularly precious metals. More than half of the companies that have reported Q1 earnings have beat estimates.  After what started off looking like a dismal earnings season, may turn out to be not that bad after all.  We'll Read more [...]