Know Your Edge(s) and Thanks Joe P

The market has slowed down quite a bit recently.  Unless you are trading the most In Play stocks there is virtually no follow through.  At times like this it is even more important to refocus on your trading edge.  For myself I have identified four things that have allowed me to make money consistently over the years. 1) Previous day’s … Read More

Funky Psychology

I traded HES on the short side yesterday and came in with an overnight short expecting a crack through the $54 level. It was looking pretty good in premarket as some small dopey prints went off around $52.57 and $53.01. I was hoping for a pop near the 54.60 dream short level where I wanted to lay into the position. … Read More

Security in MFE

MFE made an all-time high today.  GMan was long seemingly all day.  And we were deciding whether to add some above 42 and then hold.  Let’s discuss. We did buy more since the stock was so strong.  This was an easy decision.  And then we had to decide whether to sell when it slowed above 42.  We held. 1) MFE … Read More

Heavy Lifting Not Required

Yesterday ACN was in play.  One of our new traders showed his trading tape of ACN.  He was doing the heavy lifting in this stock.  This was not necessary.  Let’s discuss how to find the easiest play in an ACN from yesterday’s action. Below is the news on ACN before the Open: Accenture beats by $0.04, reports revs in-line; guides … Read More

Second Day Play: BA

I got most of our desk in that play in BA yesterday. I traded it fairly well and managed to keep a significant core for most of the down move. However, watching back my tape and seeing how this is on my list of plays I have to load the boat in I really wussed out; this was a play … Read More

From the Mailbag: BA

Yesterday we blogged about a short in BA.  A reader posted this question in response. Daryn Says: June 24th, 2009 at 5:17 pm I was thrilled to see this post today… at least I knew I was looking for the right trades. What would you say to a trader who watched this trade setup and then somehow managed to walk … Read More

BA- A Good Chance to Trade Lower

Our desk did a nice job of trading BA today on the short side.  Below 42.75 BA offered an excellent risk/reward opportunity short.   Let’s discuss why this level was so likely to work. Often traders are in the wrong stock.  Or often traders determine levels in stocks that are not significant.  BA was not the wrong stock today.  42.75 … Read More

RIMM Revisited

The market has really beat the crap out of RIMM the past week or so. 86 to 68 without a significant intraday bounce. That is the definition of short term oversold. So today in our AM Meeting we discussed the possibility of a bounce. We were focused on a couple of key levels from the prior trading day. We noticed … Read More