Archive for May 2010

Ten Mistakes by BP a Trader Should Never Make

May 30th, 2010 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs
1. No Exit Plan.  There was no exit plan for if the rig (RIG?) exploded.  Before every trade we must decide where and how we will exit BEFORE entering the trade. 2. Live to Play Another Day.  It is not definitive that BP is a viable company going forward even with 6.08 Billion in quarterly profits.  1) When will the spill stop? 2) They have a larger rig whose safety was questioned on 60 minutes. 3) What will be the economic penalties imposed on them by the surrounding states whose ecology and local economy they have ruined? Will they pay tens of billions in economic penalties under federal law?  The workers who lost their Read more [...]

Intraday Reversals Indicate What?

May 29th, 2010 | By | Category: General Comments
In the final 3.5 hours of trading Friday we touched 109 three times on the SPY and 110.30 twice. Generally, this type of up down action does not instill much confidence in market participants, and many believe it is a sign of lower prices to come. I'm not in that camp. Someone definitely was dumping a couple of billion dollars worth of stock right at the end of the day, and caused the SPY to close right at the key 109.40 level. But I don't think that means we trade much lower. Show me a close below 108 and I will reconsider. Next week I will continue to watch the market leaders and other momentum names to see how they hold Read more [...]

Traders Ask: What is the Proper Exit on a Swing Trade?

May 29th, 2010 | By | Category: Mike Bellafiore's (Bella's) Blogs, Trader Development
Reader Alex asked: My name is Alex and I've been swing trading for two years. I've been reading SMB's blog for a while, and really enjoy the posts on trader development. I have recently journaled a question that emerged during two of my recent short trades. I believe that this question relates to intraday trading as well. Depending on conditions and the setup I'm trading, I like to take profits on 1/2 of my position when my first profit target is hit, move my initial stop loss to break-even, and hold the remaining 1/2 for a second profit target. The issue I ran into with two of my recent swing trades was that my break-even price Read more [...]

Going “Old School”: the Value of Keeping Charts by Hand

May 29th, 2010 | By | Category: Adam Grimes's blogs, General Comments, Technical Plays, Trader Development
Keeping price charts by hand can shorten your learning curve. Read more [...]

SMB on StockTwitsTV

May 28th, 2010 | By | Category: SMB on TV
Steve appeared on StockTwitsTV to discuss the Market and the stocks in play for the day. Read more [...]

SMB Trade of the Week: Visa

May 28th, 2010 | By | Category: Trade of the Week
Watch SMB Trade of the Week, a Resistance Trade in V from Mike Bellafiore. Read more [...]

SMB Morning Rundown – May 28, 2010

May 28th, 2010 | By | Category: Trading Ideas
The SMB Morning Rundown highlights the key levels in the Market and the best trading setup that we have identified for the Open. Read more [...]

Maximizing My Weaknesses

May 27th, 2010 | By | Category: General Comments
Today I maximized my weaknesses.  I found the set up that is a trading weakness for my system, traded it with size, and now sit with a P&L that represents the worst of my trading.  In one sense this is quite impressive.  I did not just underperform this open.  I did as poorly as I possible could. Fresh news hit that BP is close to sealing their oil leak and it gapped up on the open.  A bullish flag pattern was forming at 45.  Before the open I thought: a) If it trades cleanly and strongly then I will get aggressive. b) If it shows me it will tick at every price I will move on or trade with very small size. What Read more [...]