Earnings Season Pattern Emerges?

Each earnings season I look for discernible intraday patterns to emerge.  As earnings season begins in about two weeks I’m already on the lookout.  Two stocks reported numbers last week that may have given me a clue as to what to expect in the coming weeks. The first stock to report that I traded was Nike.  It gapped up several … Read More

Questions from a New Trader

We are at the office going over our trading on this Saturday. Steve, GMan, and I are reviewing some of the work of our new traders. It is a good sign for these new traders who acknowledge that they need some help and are working to get better. I know at the start of my trading career that I should … Read More

Road Map

As I write I am debating whether to trade RIMM or GS. GS is in play because of the news that the bailout may not happen. RIMM reported last night and showed unusual weakness. SMB traded RIMM in afterhours yesterday and chopped it up. So I have a feel for what to look for this AM from RIMM. But we … Read More

Fading Financials and Gold

During the range bound market we experienced from 04-06 I learned how to fade stocks.  Today I used that technique to make some good money in MS and JPM.  As a trader you want as many arrows in your quiver as possible.  This is one skill you should develop to become a well rounded trader.  We can’t short the financials … Read More

Making the Adjustment

One of the things that I spoke to the desk about this past week was being prepared to make the necessary adjustments in their trading as market conditions change. Last week presented the greatest intraday volatility in US equity markets in about a decade. Our very young desk took incredible advantage of the opportunities that were presented to them. I … Read More

Bottom in Place?

This last week was out of control. I wish there was a better way to describe it. The volatility seen in the financials, specifically GS and MS was just absolutely silly. I remember I jokingly said on our morning meeting last Monday that GS could go as low as $80 and MS to $10 (they were trading at $140 and … Read More

Comfort Zone

In this market you must get outside of your comfort zone. We preach this at this time to the traders on our prop desk. And anecdotally, Steve and I were at dinner the other night and one of the best day traders from another firm made this same point. You must get into the financials if you do not regularly … Read More


One of our new traders asked me whether yesterday was like trading “Back in the Day” (think Internet boom). I quickly said no and explained that spreads were wider and programs were unborn. But I thought about his question some more that night and recognized that yesterday did offer the trading opportunities that we often saw during the late 1990s. … Read More