I have written extensively since our blog began regarding “In Play” stocks. During earnings season there are many In Play stocks to choose from each day. Traders should choose no more than two or three of these stocks each day to focus on. This is the case because you can make a lot more money trading one or two stocks … Read More
My FOMC Game Plan
Below are the last two FOMC statements: January 28, 2009 March 18, 2009 The most important part of the minutes will be the wording. The rates won’t be cut (we’re already at our lowest rate) and they won’t be raised (we’re in the middle of a deflationary cycle where raising interest rates would kill any hope of a recovery and … Read More
The Market Does Not Have to Be Fair
I got caught in the DNDN downmove today. DNDN traded down 15 points in 40 seconds. Then DNDN was halted. We are waiting for it to reopen. I was long a core position in DNDN from 24.43. This was support. DNDN was trading strongly. It traded down from 24.75 to 24.32 where I bought some more. DNDN was not trading … Read More
Learning From Other Traders
New traders at SMB can learn from themselves, their mentor and their peers. Here at SMB we have many guys that are obsessed with trading. Every chance we get, we talk about different plays, how we traded them, how much size we thought was reasonable, and how we could have traded that play differently. I want to highlight the importance … Read More
The Week That Was: April 20 – 24
Well what looked like was going to be a week for the bears ended up being a pretty good week for he bulls. Let’s keep an eye on that 88 level in the SPY, as it looks like it’s going to come into play again this upcoming week. The dollar index looks like it is breaking down from a bear … Read More
Is Trading Really an Individual Sport?
We are all paid at the end of the month based upon OUR trading performance. It is easy to measure your pay based solely on YOUR production. This is a mistake. Let’s discuss. We have two excellent young traders on our desk Dov and DLE. Dov killed it in the fall and then struggled to start 09. DLE was consistent … Read More
Second Day Play
I like earnings season not only for the volatility that comes from the day a company reports. I also like it for the information that I am able to gain from trading and watching the price action of a particular stock. This information gives me an edge the next day, which gives me a higher probability that my next trade will … Read More
MS: A Great Second Day Play
The theme of the day is the “Second Day Play”. Jtoma talked about it on Fast Money and now I will review the best Second Day Play from today. Yesterday, MS released earnings and traded in a 2 point range for the day between 22.50 and 24.50. MS was behaving relatively weaker than the market yesterday afternoon. When the market … Read More