Today, the Market appears set to open lower, continuing the weakness from yesterday. Overseas markets were down, adding to the pre-market weakness in the US. Commodities are also weighing on the Market due to strength in the dollar. The levels we are watching in the SPY are 109.60 for resistance on the upside and 108.80 for support on the downside. … Read More
Catching the Opening Drive
Trading the open is a high risk/ high reward game. The moves can be bigger and quicker, but if you are on the wrong side, the rip can really hurt. Whereas patience and conviction payoff on longer term trades, aggressiveness and flexibility are the skills that help short term traders capitalize on the volatility right on the open. Yesterday AM, … Read More
Pamela Anderson Could Make This Trade
I was involved in quite a few stocks this morning. Alerts were popping up left and right as the market was selling off. Part of my job as a trader is to quickly decide if an alert is important enough for me to stop watching my primary trading stock. At 9:51AM I received an alert that FCX had touched 82.54. … Read More
High Frequency Algorithms Tampering with the Tape & Chart Setups
Gman, head trader at SMB Capital, wrote an excellent article for Wall Street Cheat Sheet about how to make adjustments to your trading to avoid being shaken out of trades by the algorithms. You can read the full article here.
SMB Setup for the Close for November 19, 2009
Today, the weakness in the Market continued for much of the trading day. The Market easily took out the pre-market lows on the Open and has consolidated in a tight range for much of the trading day. If the Market can stay above 109.50, we may see a rally up to 110.00 into the Close. Our best idea into the … Read More
SMB Morning Rundown for November 19, 2009
Today, the Market appears set to open lower after a negative reaction to the in-line initial jobless claims number. The levels we are watching in the SPY are 110.50 (inflection point), and 111.00 as potential resistance. The next resistance level above 111.00 is 111.50. On the downside we are watching the pre-market low, 110.25. Our best AM Idea for today, … Read More
What a Strong Stock Looks Like
DE was a strong stock this AM. I blog this point besides DE being at its 52 week high. And save that DE was up over 2 1/2 points. There was a telling movement on the open from 51.50 to 51 which foreshadowed a new intraday high to visit. Let’s discuss. SPY 111.50 is an important intraday level. We … Read More
SMB Morning Rundown for November 18, 2009
Today, the Market appears set to open slightly lower after the weaker than expected Housing Starts and Building Permits numbers. The levels we are watching in the SPY are 110.80 on the downside and 111.80 on the upside. Our best AM Idea for today, which we highlighted in our AM Meeting is: HAL – Long if it holds above 32.00 … Read More