Archive for June 2012

The Trade That Never Happened

Jun 27th, 2012 | By | Category: Steven Spencer (Steve's) Blogs, Trading Lesson
This morning I was reviewing Tuesday's price action in APOL and found a long setup that I liked. On Tuesday while trading APOL I became somewhat enamored with the 35 level as it worked twice for me during the first 15 minutes of trading. But the truth is after 9:45 34.80 established itself as a much more important level for support on the tape. Each time APOL traded to the 34.80s there was a significant amount of buying. So today I planned to get long APOL as it approached 34.80 and not before. I set an alert for 34.90 and it was triggered after APOL sold off hard from 36. It appeared 34.80 would be hit shortly. I entered my Read more [...]

You Got Me $APOL

Jun 26th, 2012 | By | Category: Steven Spencer (Steve's) Blogs, Trading Theory
I lost money trading APOL today. During my post trade review it became apparent to me that even with a few tweeks I still would have lost money day trading it. Sometimes stocks do not behave well. Perhaps APOL is better suited for swing and position trading? It has a history of trading erratically intraday. During the past few years I have passed on it many times when it has been In Play for this very reason. But today with very few names In Play I was tempted to get long after its positive earnings number and confirmatory price action. I thought I set some fairly stringent criteria for myself before getting involved to avoid Read more [...]

Tape Reading Was Money For This Play

Jun 24th, 2012 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Trading Lesson
On Thursday I was short MCP because it was trading below its two day support of 22.20. The market was having a trend down day and I was very comfortable holding the position until the close. But then something changed on the tape. There was a 100 share bid on ARCA at 21.20 that was being hit and continued to refresh its order. Very quickly it absorbed about 20K shares. There were offers at 21.21 so I covered my short position. When I am in a position that is "working" for me and it is trending with the direction of the market I am very reluctant to close that position. But if something unusual happens on the tape I will take notice Read more [...]

The Truth About Our Economy

Jun 21st, 2012 | By | Category: General Comments
It has been almost 4 years since the US fell into the Great Recession and we have yet to see a strong recovery. One of the after-effects of the Great Recession has been the increased attentiveness to monetary policy. Attentiveness to monetary policy existed before the Great Recession but not to the degree seen today; since the Federal Reserve took unconventional steps in 2008 to fight the recession, it now seems like every single word or action coming of the Federal Reserve (Fed) is a do or die moment for the markets and the economy. Well, I got bad news for all those who think monetary policy is the “Holy Grail” to our Read more [...]

Yesterday’s Option tribe:May and June Bearish Butterfly Strategies.

Jun 21st, 2012 | By | Category: General Comments, Options Education, Seth Freudberg's Blogs
May and June Bearish Butterfly Strategies - 06.19.12 from SMB on Vimeo. SMB’s Options Tribe is an online community of options traders dedicated to sharing successful options trading ideas with all of our members worldwide. Each week the community will meet online for the primary purpose of watching live presentations made by veteran options traders and experts in the world of options trading.This week, John Locke would walk you through May and June Bearish Butterfly Strategies. If you couldn't make it to the live webinar, here's your chance to watch the recording. Make sure to look out for the invitation to next week's Read more [...]

Trade Execution

Jun 19th, 2012 | By | Category: General Comments
Hey Mike, I had a quick question with regard to order execution style and what orders you use.  I know that on our keyboard, we have presets for ARCABidTier and ARCAOfferTier that are limit orders and the custom SWEEP keys that are market orders that process 3c through the bid or the offer.  Although I'm working on my keyboarding skills and know I need to get faster, and although the SDOT Stop keys don't work on the demo, I was wondering from your perspective whether a market order hitting the bids or taking the offers should be used in order to exit a position immediately, both from a rip and a chop standpoint. Example: Read more [...]

Traders Ask: What is a Competitive Trader?

Jun 19th, 2012 | By | Category: General Comments
Question: I hear a lot about the value of a competitiveness in trading success. Analogies are made with the striving for peak performance seen in athletes and entrepreneurs. One thing about this puzzles me, and I'd appreciate the thoughts of others with more experience and success. When I trade I am trying to get better: to make good trades and, inhibit the tendencies to make bad ones. So, I am competing but it is only with myself. Looking at trading as a game, like a sport,  there is the mental and physical preparation: watching the market, identifying levels, getting a feel for the price action. But unlike sport when Read more [...]

Gameplan review – June 18th, 2012

Jun 18th, 2012 | By | Category: General Comments
Steve reviews how these pre-market ideas played out today. DSW, BKS, UNG, FB, NFLX, NAV Game Plan Review June 18th Steven Spencer is the co-founder of SMB Capital and SMB Training and has traded professionally for over 15 years. His email is [email protected] No relevant positions Try all our trading tools for 2 months *SMB Radar not included Read more [...]