Trade on the Open: MCD

We teach our desk not to fade weak stocks.  But there are plays on the Open that look like the stock is weak.  Actually they are not.  And these plays are given the green light to fade.  We had such a setup in MCD on the Open.  Let’s discuss. MCD opened near 58.33, could not hold and traded lower.  MCD … Read More

The Week That Was: June 1 – 7, 2009

The SPY traded in a pretty tight range this week, not trading much below 93 or above 95.50.  Again, we were looking for that catalyst to push us one way or the other, and I thought we were going to get it Friday morning with the much better than expected non-farm payroll number.  We’ll see this week if Friday’s weakness … Read More

Where is the Next 50c Trade?

We are in the office watching tape on this Saturday.   We just ended Part I one of our review session.  An interesting trading topic emerged: when to forgo a scalp.  Let’s discuss. There is this notion that day traders just scalp.  Wrong.  But there is also this elitist belief that scalping is somehow beneath some traders.  Not me.   … Read More

Trading A Secondary Level

JPM priced a secondary a couple of days ago at $35.25.  JPM showed nice strength in the morning and traded up from around $34.40 to $35.25.  One of the younger traders on the desk called out “JPM at the high of the day”.  Rosie, the trainee who sits to my left immediately responded that JPM was approaching its secondary price … Read More

SMB on CNBC Halftime Report

This afternoon I appeared on CNBC’s Fast Money Halftime Report for the second consecutive day, commenting on the market’s direction, the retail sector, and GS. Yesterday afternoon we saw SPY briefly breach its $93 support level but rise back above it into the close, which is a sign of strength (just because SPY momentarily failed at $93 breaks doesn’t mean … Read More

What Would you Do?

Today our best morning idea was to play $VLO off the $18 secondary offering price. From the daily chart you can see that the stock had just came off about 20% in the last 2 days and figured the underwriters of the offering would help support the beaten up stock down at this level. The play was to buy at … Read More


Jeff Tomasulo, senior trader at SMB Capital, appeared today on CNBC’s Fast Money Halftime Report. Watch the clip here and leave your comments on this blog. Best of luck with your trading! Don’t forget to follow us on Twitter!.

SMB on CNBC Halftime Report

This afternoon I appeared on CNBC’s Fast Money Halftime Report. During the show, I offered my opinion on oil, AAPL, and MCD. Oil collapsed off recent highs based on increasing inventories and seemed to struggle at the $68 level. I took sales in my positions around $68 and am looking for a pullback to the low $60’s or high $50’s … Read More