Momentum trading requires guts. Take a look at the two day chart of SRS. There is a ton of money trading the trend of SRS. But I am not gonna sit here and tell you it’s easy. But if you want to be a great momentum trader you must take advantage of opportunites like SRS. Often with momentum trading you … Read More
Light Volume
The volume was light on the Open. GS didn’t have many real orders. During our SMB AM Meeting we thought GS might find some real orders. FCX didn’t. ABX was pretty strong. AET was very strong. I traded AET on the Open. But even with AET the volume was very light for a stock in play. So what do … Read More
Getting Better
I read a lot of blogs. And lately a popular topic has been goals for 09. Personally I prefer to concentrate on finishing out the year strongly rather than spending any energy thinking about 09. I will do that when the month ends. Also, we don’t do a whole lot of big speeches at SMB. I don’t believe in that. … Read More
Know yourself!
Over the years I have found it extremely important to keep all kinds of information about my trading in journals. In these journals I have found out more about myself and the way I trade than any other trading tool out there. I use the journals to keep track of the obvious, my daily P&L and the volume I did … Read More
More Buyers than Sellers
HIG finished up 100 percent on Friday. At one point HIG was up 120 percent. At up 50 percent I heard the chirping. And chirping by very good traders. Chirp is an old school term defined as a trader definitively predicting the proper price of a stock. Chirp. Old school traders recognize that anything can happen at anytime. Old school … Read More
Things I Liked About Last Week’s Market Action
Volume stayed pretty consistent. The lowest volume day we experienced was on Monday, which was the sell off to the bottom of the range (82). Market rallied on bad economic news. After an initial sell off right to support, momentum began to build towards the upside. And we closed at the top of the range (88). We closed above the … Read More
Some Things I’ve Been Reading This Week
Monthly jobs number not that bad. Bond yields at lows. How low can things go? A few market anomalies.
Plays Not to Be In
Yesterday I got pretty heated at some guys on our desk for being in what I call “a good play in a sucker stock” in the middle of the day. Every day for the past 2 weeks I have noticed that some guys get in plays where the risk appears to be 1 cent and the reward about 5-10 cents, … Read More