Archive for December 2013

A Consolidation Trade ($TDC)

Dec 23rd, 2013 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs, Reading the Tape, SMB Video Blogs, Trading Lesson
During SMB’s most recent The PlayBook Checkup with Bella we discuss: A Consolidation Trade ($TDC). This is a basic intraday technical analysis pattern that every developing trader should learn. We discuss: Who cares what $MS thinks about $TDC and how this should affect your trading? A 52-week high is more important than an intraday high in $SPY A news pattern that can lead to a gap fill on the Open How to put together an important longer-term technical level with a short-term technical level to improve your win rate See the slide show of this trade in Power Point SMB PlayBook Template form here. Watch the video Read more [...]


Trading Lesson: Fade Trade—$TSLA

Dec 22nd, 2013 | By | Category: General Comments, Reading the Tape, Steven Spencer (Steve's) Blogs, Trading Lesson
Tesla has demonstrated itself to be one of the very best short term trading vehicles in 2013 (no pun intended). After putting in an all time high above 190 it has presented numerous setups on both the long and short side. READING THE TAPE This trade began as a “pattern recognition” trade but morphed into a “tape trade” as there was a clear seller on the tape. Traders who develop this skill are able to better manage risk and improve their results. I initiated my short position just below 155 based partly on a pattern I saw developing on the 30 minute chart, and eventually adjusted my “trade management” to account Read more [...]


Stock Manipulation: Profit From Others’ Duplicity

Dec 21st, 2013 | By | Category: General Comments, Reading the Tape, Steven Spencer (Steve's) Blogs, Trading Lesson
A common refrain I hear from various commentators is the “market is rigged” and therefore it is hopeless to make a living actively trading or investing. In this video I discuss two recent situations where I suspected there was trading activity based on “insider information” or advance knowledge of potential large moves and how to trade these scenarios as a short term trader focused solely on price action. If you find this video helpful please share via one of the social sharing buttons at the top of the post. Thank you! Steven Spencer is the co-founder of SMB Capital and SMB University which provides trading Read more [...]


Trading Lesson: 2nd Day Trade—$ADBE

Dec 21st, 2013 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Technical Plays, Trading Lesson
Adobe (ADBE) announced their earnings recently and the stock had a big change in price the following day. The stock had heavy volume, which is something I look for to setup a trade for the next trading session. This is one of the easier trades we teach in our training program and it’s called “2nd Day Plays”. After a stock has some type of catalyst, it attracts many large market participants who take positions on the first day. As short term traders we are trained to analyze that price action and then develop a plan of action for Day 2. TRADE MANAGEMENT I like to see the stock pull back from the previous day’s highs Read more [...]


Can You Momentum Trade Oil Like Our Trainee?

Dec 21st, 2013 | By | Category: General Comments
Our trainee Petr takes a momentum trade in the WTI cdf and makes 5:1 RR. Can you trade like this? Subscribe: http://bit.ly/utraderyt Help me write my book: http://www.unconventionaltrader.com Training Info: http://www.bit.ly/smbhome My analysis on TradingView.com: http://bit.ly/tviewprfle Twitter: http://www.twitter.com/marcpmarkets Webinar and Trade Review Archive: http://bit.ly/archpge Marc Principato, CMT Risk Disclaimer *No Relevant Positions Read more [...]


The VWAP Trade ($AFSI)

Dec 20th, 2013 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs, SMB Video Blogs, Trading Lesson
During SMBU’s most recent The PlayBook Checkup with Bella we discussed: Consolidation Below VWAP-Oversold Stock with Morning Pop. This trade will introduce you to VWAP as an indicator for short-term trading. We discuss how to determine your risk for A+, B, and feeler traders. The principle of The Uncertainty Trade is explained. We hope you enjoy the video of this trade discussion below. NOTE: Download the slides at the end of the video. You can be better tomorrow than you are today! Mike Bellafiore One Good Trade The PlayBook No relevant positions Find Your Trading Confidence in Just Ten Weeks Discover Read more [...]


All Hedging is Not Created Equal

Dec 19th, 2013 | By | Category: General Comments, Systems Trading, Trading Lesson, Trading Theory
In this post I will show you a strategy that can be long and short financials at the same time and end profitably. The concept is based on pairing instruments that have different natures. The nature of leveraged instruments is to increase the impact of one-way movements. The nature of unlevered broad-based indexes/funds tends to have more reversion and overlapping price movement. In order to eliminate any curve fitting or algorithmic voodoo, I’m going to simply apply a long/short signal using a 20-period exponential average on both instruments. The signals are to buy a new 60-minute high above the 20 EMA and short a new Read more [...]


The Breakout Trade ($HIMX)

Dec 19th, 2013 | By | Category: General Comments, Mike Bellafiore's (Bella's) Blogs, Seminar Videos, SMB Video Blogs, Trading Lesson
During our latest edition of The PlayBook Checkup with Bella, we discussed a Breakout Trade. This is a wonderful trade to add to your trading PlayBook. The key for this trade is to make sure you are trading off of important technical levels and not levels you “made up” as significant. With this trade, we show a truly significant technical level in HIMX. With this trade, you will learn how to develop breakout trades with a fundamentally strong method. Watch the video below to work on your trading game for breakout trades. You can be better tomorrow than you are today! Mike Bellafiore One Good Trade The Read more [...]