Archive for May 2012

When The Price Action Changes–Facebook

May 31st, 2012 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Technical Plays, Trading Lesson
Facebook had been an great swing short since Tuesday morning when it made a new post IPO low. It continued to make lower highs and lower lows. The definition of a "downtrend". You were hard pressed to spot two consecutive green bars on the 15 minute chart and the few times that did occur there was very little volume and almost no upward momentum in price. So if you were short and continuing to short you had the wind at your back. As I looked at FB's action this morning it continued to behave very well as a short. The small gap up was sold aggressively on the Open and it made a new "all time" low. When I checked back in to see Read more [...]

New AAPL weekly ‘fly and SPXPM update

May 31st, 2012 | By | Category: General Comments
This post is another in a series tracking the hypothetical performance of broken wing butterfly trades selected by Greg Loehr of The hypothetical butterfly on the SPXPM is progressing nicely. You'll recall that this was instituted as a "longer-term" trade compared to the weekly broken wing butterflies that I had been tracking on AAPL and SPX. So for now there's nothing to do but kick back and wait for the time decay to set in. Sometimes watching the time decay trickle in is a bit like watching grass grow, so to keep things interesting I'm tracking another AAPL broken wing butterfly, on the weekly options Read more [...]

Jack Schwager Hedge Fund Market Wizards Video Interview

May 30th, 2012 | By | Category: General Comments
Michael Martin, author of The Inner Voice of Trading, recently did an amazing interview with Jack Schwager where they discuss his new book Hedge Fund Market Wizards. We hope you enjoy it. Read more [...]

Midday Review – May 25th 2012

May 25th, 2012 | By | Category: General Comments
On this review, Steve reviews PAY and explains why we focus on trading stocks with this pattern. Also references GMCR, NTAP and FB. * No relevant positions To watch these midday ideas live through SMB Real Time, sign up below 1 week trial of SMB Scanner, Stocks in Play and SMB Real Time Read more [...]

The Trading Show Chicago

May 25th, 2012 | By | Category: General Comments
Mike Bellafiore, author of the "trading classic" One Good Trade will be speaking on The Trading Show Chicago 2012 on June 25-27, 2012. The Trading Show Chicago brings together the leaders in North America's trading community, to explore new advances in trading strategy, quant models and technology. Mike will be presenting a seminar session in one of the on-floor theatres in the exhibit hall. He will be speaking on the topic, "How to develop models without complex programming". Register now for FREE to hear him speak! Read more [...]

A sad anecdote of a failed trader

May 24th, 2012 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs
I received this email from a trader this week: Hey Mike, We talked awhile ago, about how your book "One Good Trade" has helped me and my 5 friends on the trading desk at our prop trading firm($$$$ Capital).  I have been trading for about 12 months total and about 6 months live.  I have found that your website blogs and tweets during the day have really helped me excel my trading curve.  My prop trading firm is more of a "Do it yourself" type of firm, and I feel in trading to succeed you need a mentor to guide you through all the ups and downs of the market. Therefore, I came to realized that you, your blog, and SMB Read more [...]

Steve Spencer on Bloomberg TV – SMB’s Spencer on Short Selling Facebook stock

May 24th, 2012 | By | Category: General Comments

* No relevant positions

Longer-Term Broken Wing on SPXPM

May 24th, 2012 | By | Category: General Comments
This post is another in a series tracking the hypothetical performance of broken wing butterfly trades selected by Greg Loehr of Over the past several weeks I've been selecting and tracking hypothetical broken wing butterfly trades, in real time, using the weekly options. I was using AAPL, SPX and most recently SPXPM, and all six trades produced simulated profits ranging from 1% to 31% over those weekly time frames. Not bad at all. But now I'm going to track a trade on SPXPM using the regular expiration June options, which have 22 days until expiration.  The trade I'm following is the 1250-1240-1220 Read more [...]