One advantage of trading experience is perspective. There are ebbs and flows to the market. There are natural periods where we slump. And there is a learning curve that the new trader must overcome. Let’s discuss. In the book that I am currently writing for Wiley, I start a chapter explaining that there are way too many people walking around … Read More
Ritholtz, 52 Week Highs, and Epic Battles
I received this question on a previous post that we should discuss from Damien Hoffman of Wall Street Cheat Sheet. Let’s tackle this question. Damien Hoffman Says: June 29th, 2009 at 10:43 pm 1) How do you deal with a gap against an overnight position which breaks your stop? 2) Do you favor 52-week and all-time high stocks? I have … Read More
Range Play on the Open: OSK
We have watched two excellent Range Plays on the Open with Stocks in Play recently in our Video Review Sessions. One was in LVS. One was in OSK today. Let’s walk you through this trade set up so you can add it to your quiver. OSK gapped up on the open after receiving a huge new contract from the government. … 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
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
US Open Flu?
I have missed the past two trading days because of the flu. I know what some of your are thinking. Hmmm. Bella loves watching golf. And he is always blogging about how much he loves that Phil Mickelson. And Phil made a run at the Open today. The US Open was just in Bethpage. Was this the US Open Flu? … Read More