Today, the Market appears set to open higher after comments over the weekend from Chicago Fed Evans that interest rates will probably remain near zero into 2010. The weakness in the dollar is helping push gold to new highs, and also the catalyst for the strength in other commodities. The levels we are watching in the SPY are 110.50 (inflection) … Read More
Can You Just Play as a Trader?
If POT breaks 112 then I will get long. If RIMM hits 65 I will start a long term short. If MON gets above 70 then I will get long and try and stay long till 74. If AAPL breaks 205 I will whack the bids and play the downside momentum. All of these are example of excellent trading plans … Read More
SMB Setup for the Close for November 20, 2009
Today, the Market touched SPY 109 in the middle of the day the before making a modest attempt to rally later in the day. Into the Close we don’t expect a big move in the Market as the volume in fairly light. We are watching SPY 109.70 for resistance and 109 for support. Our best idea into the Close is … Read More
SMB Morning Rundown for November 20, 2009
Today, the Market appears set to open lower, continuing the weakness from yesterday. Overseas markets were down, adding to the pre-market weakness in the US. Commodities are also weighing on the Market due to strength in the dollar. The levels we are watching in the SPY are 109.60 for resistance on the upside and 108.80 for support on the downside. … Read More
Catching the Opening Drive
Trading the open is a high risk/ high reward game. The moves can be bigger and quicker, but if you are on the wrong side, the rip can really hurt. Whereas patience and conviction payoff on longer term trades, aggressiveness and flexibility are the skills that help short term traders capitalize on the volatility right on the open. Yesterday AM, … Read More
Pamela Anderson Could Make This Trade
I was involved in quite a few stocks this morning. Alerts were popping up left and right as the market was selling off. Part of my job as a trader is to quickly decide if an alert is important enough for me to stop watching my primary trading stock. At 9:51AM I received an alert that FCX had touched 82.54. … Read More
High Frequency Algorithms Tampering with the Tape & Chart Setups
Gman, head trader at SMB Capital, wrote an excellent article for Wall Street Cheat Sheet about how to make adjustments to your trading to avoid being shaken out of trades by the algorithms. You can read the full article here.
SMB Setup for the Close for November 19, 2009
Today, the weakness in the Market continued for much of the trading day. The Market easily took out the pre-market lows on the Open and has consolidated in a tight range for much of the trading day. If the Market can stay above 109.50, we may see a rally up to 110.00 into the Close. Our best idea into the … Read More