Good morning traders. Market is up slightly overnight following a very strong session yesterday. Typically after a trend day the following day tends to see consolidation in the morning session. On the open I will be much more inclined to take quick momentum profits than usual. I am also going to be looking to buy quick dropouts to afternoon support … Read More
Inside the World of Prop Trading: A Journey with the Disciplined Investor
Mike Bellafiore, author of One Good Trade: Inside the Highly Competitive World of Proprietary Trading, was featured on The Disciplined Investor. Mike talks with host, Andrew Horowitz, about the shift to high frequency trading (HFT) in the trading industry and the ways SMB has adapted to combat the adoption of HFT. Andrew does a weekly podcast, which can be found … Read More
Will the Real Level Please Stand Up? (Know Your Market)
Traders watching the S&P 500 have at least four possibilities for market proxies (and most other major indexes have similar issues), but they’re not always created equal. Some instruments do some things better than others and some are completely inappropriate for certain uses. Let’s start with looking at the pros and cons for each SPY proxy: SPY: An ETF that … Read More
SMB Trade of the Week – FDX
SMB Trade of the Week – FDX. A Return to a Technical Break Area Trade
SMB Morning Rundown – September 20, 2010
The SMB Morning Rundown highlights the key levels in the Market and the best trading setup that we have identified for the Open
The “Pin Play”
Expiration day can have a strong effect on a stock. This is known as “pinning the stock”. A stock that is stuck at strike on expiration day when the general market is moving will move away from strike after expiration day. Stocks with high open interest at a particular strike usually get pinned near the strike on expiration day. This … Read More
Traders Ask: What Bloggers Should I Follow?
Hi Mike In your book you mention several times that you ask potential traders what blogs a trader reads. Sadly when I thought about this (and prior to this blog) the answer for me was none. I read heaps, seek out videos, study my trades, would love a mentor etc. but no blogs). Why? When I started trading stocks I … Read More
Decoding Pullbacks: A Case Study in RIMM Post-Earnings (9/17/10)
Last week, a reader asked for an example of an easy technical play… a lay-up. Here is an example of One Good Trade in RIMM – a pullback short supported by multiple technical factors.