The Absurdity of MER

I really wanted to write this post after the market closed today.  But I have been literally working on other projects for our firm for the past seven hours (11:50pm EDT now).  So I’m going to share my thoughts on what I believe is a very good risk/reward trade in Merrill Lynch. MER issued a secondary about two weeks ago … Read More


Just read GMan’s blog about SMB’s Batman night.  I have to add a few thoughts.  1) Watch Batman on an IMax screen.  It is an incredible movie watching experience.  If you live close to NYC or in NYC don’t just go see it on a regular screen.  Go and find an IMax theatre.  If you have already seen in on … Read More

Enjoy the Company of your Fellow Coworkers

Last Friday we had a company outing. We stopped trading a bit earlier and headed up to watch the new Batman movie in the IMAX screen. The movie was great, I mean it is hard to dislike a movie when you are watching it on a huge screen with sound so loud your seat actually shakes during explosions. After the … Read More

Summer Trading

The slow part of the summer is upon us. Seasonally this is the best time to take time off to get ready for another exciting year of trading. August is typically a very slow month in trading, especially the last two weeks of the month. If the volume and volatility is not there, it is not the time to sling … Read More

Be in the Stock When It’s Moving

As we have mentioned previously in my blog some have emailed me with concerns that program trading will rule trading soon.  The market will never displace the disciplined independent trader.  What is certain is that programs mandate that you adjust your trading and more selectively choose your entry points.  Let’s take a look at ELN from yesterday to illustrate this … Read More

Is It Really That Bad?

Yesterday, ELN and WYE were massacred, by Wall Street standards, because of a drug that was being developed for Alzheimer’s disease and failed in phase II trials. The experimental drug was said to “only help half of patients and was linked with a brain-swelling side effect” by (You can read more about it here: In the aftermath, ELN … Read More

The Right Stocks

You are only as good as the stocks you trade. Let me repeat this. You are only as good as the stocks you trade! This is a major point of emphasis on our desk. It is taught to trainees during their first week of training. And stressed on a regular basis to all traders at SMB. It is the reason … Read More

Just Trade

There was a bunch of chatter on our desk before the Close about a dead market. DQ, a solid young trader, was complaining, “The energy stocks stopped moving. They don’t move that well after 2:30. Nothing is movin.” I remarked, “So take a look at some of the financials, young fella.” MER was sitting there at 25, bobbing and weaving … Read More