Archive for June 2009

SMB on StockTwits

Jun 23rd, 2009 | By | Category: General Comments
Mike Bellafiore and Steven Spencer, partners at SMB Capital, appeared today with StockTwits founder Howard Lindzon on StockTwits TV.  In the interview, they discuss the history of SMB Capital, characteristics of a successful prop trader, and the role of technology in training and communicating with traders.  Watch the clip here and feel free to leave your comments on this blog. Don't forget to follow us on Twitter! Read more [...]

US Open Flu?

Jun 22nd, 2009 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs
I have missed the past two trading days because of the flu. I know what some of your are thinking. Hmmm. Bella loves watching golf. And he is always blogging about how much he loves that Phil Mickelson. And Phil made a run at the Open today. The US Open was just in Bethpage. Was this the US Open Flu? Unfortunately it wasn't. But I am now officially better. And a little disappointed that I missed the action in RIMM and APPL the past few days. GMan wrote a great blog about hanging in there and grinding it out in RIMM. As an intraday trader I have learned information gained from watching my stocks print and trade Read more [...]

Paying For Information

Jun 22nd, 2009 | By | Category: Gilbert Mendez's (Gman's) Blogs
Last Friday most experienced guys in our desk traded RIMM on the open. The moves where fairly violent and most of us got ripped up at first. It seemed the stock was crowded with big traders and most levels didn't hold that cleanly. The risk in most plays ended up being about 2-3 times larger than one would have thought. All this slippage was adding up...and quickly! I want to discuss the role of active trading (not scalping) and how this helps us catch the big move with more size than usual when the setup is presented. As active traders we try to make the spread a few times while we clearly identify the direction of the stock Read more [...]

The Week That Was: June 15 – 21, 2009

Jun 21st, 2009 | By | Category: General Comments
The SPY was finally a little weaker this week, as the range moved down slightly, starting the week at 94, moving down to 91, and closing at 92. This coming week, the levels I will look at are 93 as resistance, and 90 as support. Some of this week's links: An interesting look at the possible moves the Fed will make in the upcoming months. Really good read, this could give you some insight on possible scenarios that could play out. A clip from 1994 regarding the Internet. It's funny to hear how it was regarded just 15 years ago. We've come a long way in a pretty short period of time. An interesting article on Bill Read more [...]

It’s Called Trading

Jun 19th, 2009 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
Each day into the Close our intern Krysten asks me to share a trading idea for our Twitter feed. Today I told her that I was short AAPL below 138 but would cover above 138.15. AAPL had failed at the 138 level earlier in the day and had a significant down move. I was risking 15 cents to make potentially $1. About fifteen minutes after I put on the short position AAPL began to hold the bid above 138.10. I covered my short and got long. I am somewhat reluctant to give Krysten a trading idea each afternoon for Twitter because I recognize that not everyone who follows our tweets is a professional trader who can capitalize on Read more [...]

From the Mailbag

Jun 19th, 2009 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs
I received this question the other day and thought we could discuss it. Ok so here goes...... Rusmin Says: Friday, June 19th, 2009 at 3:24 am I want to ask you a question. But before I ask you that, I want to tell you something. I had a similar day where i took a huge rip. I f**ked up fifteen times in a row. After that I was so depressive, i couldn’t sleep. I lost my self-confidence. The difference between me and you was, that I hadn’t so much experience like you. Things come to my mind like “I will never master the markets”. After I analyze all my trades, I came to the conclusion that I will only trade my best Read more [...]

RIMM For Tomorrow

Jun 18th, 2009 | By | Category: Steven Spencer (Steve's) Blogs
I traded RIMM in the aftermarket today.  It was a bit of a roller coaster ride.  Initially our "chirp guy" (person who reads breaking news over a speaker) said they beat their earnings estimate by around 20%.  I have a rule in the after hours when trading a momentum stock.  If they beat estimates by more than 10% I buy.  If they beat by 20% I buy and don't sell!  Unfortunately,  our "chirp guy" who is somewhat of a moron got the news wrong!  RIMM only beat the estimate by around 5%.  I went from being up $1.50 on the position to being down $3.00 very quickly.  But then the real trading began. While I was trading RIMM Read more [...]

I Am a Technical Trader

Jun 18th, 2009 | By | Category: Jeff Tomasulo's Blogs
This afternoon on CNBC’s Fast Money Halftime Report, Dennis Gartman (producer of the respected The Gartman Letter and former futures analyst for A.G. & Becker) and I seemed to dissent about how to play GS.  We didn't.  Let's discuss. About a week ago, I advocated shorting GS at 150 with a stop at 151.17 and a target of 140. For anyone who followed this trade, it worked out very well – GS trended down to just below 140 intraday yesterday and I closed my position (as it reversed and closed above 140). As a short term trader, I love trades like this with a risk to reward ratio of 10 to 1. On the show today, I talked Read more [...]