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
WoW!!
Occasionally, I give a shout out to one of the less experienced traders on the desk for sharing great trading information. I am definitely not the type of person who offers faint praise. In fact, if you talk to those who are closest to me they probably would say that I am somewhat parsimonious with my compliments. So when I … Read More
Opening Drive (HGSI)
Opening Drive? Mike is that some football term describing a team’s first possession? No. The Opening Drive is a play that momentum traders crush, leaving a huge grin on their face. These traders in the first 15 minutes can make enough to ensure an awesome trading day. We saw one today in HGSI on the Open. I walked onto … Read More
The Shark Tank Risk Management System
Let’s start by talking about the shark tank. It all started with one of the traders – JP – calling himself a shark in some non-trading conversation. Unfortunately for him his mentee who sits next to him – RB – heard the silly comment and lost it. Over the next few days RB would just not let it go. Quickly … Read More