It seems that we are finally starting to turn. The overly talked pullback may be on its way. It started with the SPYs gaping down Monday with a failed attempt at filling the gap. Yesterday we closed below the trading range we had established for a while. Today we got confirmation by cleanly taking out yesterdays low and holding for … Read More
Letting the Play Unfold
We started a down trend in the last couple days and as long as SPY is below 93.60, I will try and stay short. It is not hard to make money as an intra-day trader during these type of market days. The key I am finding with my trading lately is that I have to let the play unfold. Lately, … Read More
Trading Both Sides- RMBS
RMBS was In Play on Friday and we made some chops long on a slow summer day to its resistance, 17.80. 17.80 was an important technical level. RMBS collapsed from this level previously (see chart below). 17.80 was an inflection point for us on Friday and on Monday. And we made money on both sides using our trading skills. Let’s … Read More
The Week That Was: June 8 – 15, 2009
Action in the SPY this week was pretty tight. The lowest we traded was 93, and never really traded above 96, failing at the same spot we failed last Friday in the pre-market. The range has really tightened over the last 2 weeks. We were not able to close above 95 on the SPY until Friday, when we climbed above … Read More
Taking A Look Under The Hood
In the world of day trading we like to say that earnings season is our “playoffs”. It only occurs four times per year and is a time where trading opportunities abound. The most difficult thing during earnings season for traders is remaining focused on their best ideas and not attempting to bite off more than they can chew. If a … Read More
Algorithmic Programs That Will Be Eliminated
Yesterday I wrote about secondary plays, and a program we call Buying the New Low. When a stock makes a new intraday low algorithmic programs buy this new low because they know that short term traders will get short. These programs are betting that only light volume will enter the market when a stock makes a new low. They buy … Read More
Seconday Price Pattern: AMP, JLL
We spotted a trading pattern in AMP and JLL this week. Both traded below important support, their secondary price offering, and had a decent downmove below. Let’s discuss how to trade a Secondary Price, and the pattern we discovered. Trading a secondary is a simple trade. Above the secondary price we are long. Below the secondary price we flip our … Read More
From the Mailbag- RIMM
I received this question last night about a recent Tweet where we suggested an excellent entry for RIMM. Let’s read the question and then discuss. Dear Mike, I have been following SMB via Twitter and your blogs for some time now and have got a lot out of the posts. So thank you and all at SMB for that. I … Read More