Last night a few of us from our desk went to a movie short premiere, “$ Game,” written by Maureen Holohan and directed by Tom Cavanaugh. Great time and excellent short. At the after party many who I did not know but who either found out what I did or recognized me from “Wall Street Warriors” approached me to talk … Read More
Super Bowl of Trading
Tomorrow is our Super Bowl. LEH may file for bankputcy. MER may be bought. Oil is below $100. AIG is seeking capital. We not gonna get all those funny commercials, chips, pizza and cheap beer. But we are gonna get some serious price action tomorrow. Can we just go to the office and start trading now? OK so what do … Read More
May You Live in Interesting Times
My partner has been highlighting the weakness in LEH for weeks. And a few days ago this blog suggested to watch for weakness in LEH when it was 17. As I write LEH is 4.24 bid. LEH did have trouble trading below 4 premarket. It is time to start wondering if LEH will receive a bid. Make sure your are … Read More
Lehman Support
Just wanted to write a quick note that LEH has been showing support around 7.50 all day. It spiked down there a few minutes ago and I got hit for 1,000 shares. I have a stop order below 7.45. If sellers come down aggressively below 7.40 I will change my bias to the short side again. Above 8.15 I will … Read More
LEH, Financials, and Oil
LEH was crushed yesterday. The price action screams that the market has lost confidence in LEH. We saw foreshadowing of this as my partner, Steve Spencer, has been highlighting during our AM meetings. And today LEH preannounced. LEH traded above 10 and then went negative. They are on a conference call as I write. What a great trading opportunity. So … Read More
Insanity
One of our new traders got ripped by a Senior Trader on our desk in the email below. I thought all of this was awesome. I loved that the new trader sought some extra help. And the advice given was spot on. As a mentor it is our job to tell the new trader the truth. Further, there are a … Read More
Modeling Career
I would like to take this opportunity to officially announce my retirement from modeling. Well let me modify that statement. I will not model another day unless I get paid 10k. Ok now that makes more sense. So Steve and I were asked by Trader Monthly to do a shoot for an article they are writing about SMB Capital. The … Read More
Tier Size
The last few days have been a bit slow after the Open. We must adjust. One adjustment I make on such trading days is to lower my tier size after the Open. I traded HPQ on the Open (chart below). It held 45 and made a nice upmove to 45.25 where it was met with resistance. After a struggle at … Read More