MON had been consolidating in a tight range for the past three days between 68.70 and 70.30. Today it finally moved. How would you have traded it? Take a look at the two charts below to better understand the context of the move. How will you trade it tomorrow? I will offer my thoughts in the AM…
Important Market and Stock Level Pattern
We have been waiting for GS to hold above 173.50. I quick check of the 5 day in GS will so confirm. 108.10 SPY is an important technical level. A hold above and our next important level is SPY 110. Before the open you should have had these thoughts as an intraday trader: Imagine if GS can hold above 173.50 … Read More
Sunday Thoughts From the Shark Tank
Times are hard for active traders these days. The ridiculous growth of HFT algos with their noise is starting to weed out the unable to adjust, overly frustrated and under capitalized traders in the industry. Last week I heard on the squawk box that Goldman’s HFT operation lost money only one day last quarter. That is just ridiculous. Talk about … Read More
Being Prepared for the Easy Money
GMan did a great job of preparing our desk for today’s open. Here were his top three intraday ideas: 1) Buy PG at 60 2) Buy WFMI if it holds above 27 3) Buy CVS if it holds above 29.11 1, 3 were important intraday levels learned yesterday. 2 was a longer term technical play. None of these plays … Read More
A Short Term and A Long Term
WFMI was In Play today. It gapped down in the premarket on disappointing earnings results. My first instinct was to look for a good level to get short as WFMI usually follows through on the direction of its gaps. I had a downside target of 27 based on a longer term level. What I needed was a safe entry point. … Read More
Sharing Information
When we started SMB Capital not even four years ago we set out to do four things: 1) provide the best intraday training on the Street. 2) offer a payout that was fairer than I had received to our traders. 3) create a culture of perpetual learning, where we all learned from each other. 4) share valuable trading information. Many … Read More
HFT and the Effects on the Markets
I am writing an article for SFO magazine on HFT (High Frequency Trading) and its effects on the markets. For me the most glaring change are the plays that no longer work. Specifically paying for a new high in a stock and playing for upside momentum. Too often the result of paying for the new high is a seller sticking … Read More
Taking Advantage of Choppy Fed Day Trading
Every time Bernanke and the Feds are set to make a rate announcement, we have a brief meeting within our firm to discussing how we are going to trade. Whereas last fall we saw some huge directional moves on rate decisions, on several of the recent Fed days we’ve experienced extremely choppy action. The market will appear to be breaking … Read More