Trade: 8/10/2010 WHR $86.07 Buy 2 August 85/90 call spread limit price $ 1.65 target 3.00/ by August 17th stop 1.10/or a stock close below 83 Reasoning: WHR- looks like it found some support in the 85 level the past few weeks. A move above the 87.31 level should see the $90 level quickly (same day or with a … Read More
Traders Ask- Now What?
Question: What do traders do for the rest of the day after they have been stopped out especially when it happens early in the day? Answer: Thank you for the excellent question. You trade on the demo. You make details notes in your trading journal about the set ups that ended as losers. You talk to others on the … Read More
Shorted HPQ But Not For Size
I shorted HPQ on the Open at 43.70 but no for size. It is more than a point lower and I am reviewing whether I was a wuss, my intuition not to short with size was appropriate, or something else. At SMB we make trading decisions based upon three factors: Reading the Tape, Intraday Fundamentals, and Technical Analysis. HPQ had … Read More
3…2…1…Live
I know of no more encouraging fact than the unquestioned ability of a man to elevate his life by conscious endeavor. — Henry David Thoreau Our June class will go live on Tuesday. Home of an interesting cast of characters like: 100 Push Ups, Everyone’s Best Friend, Iron Mike Mike, Trend Line, the Air Canada boys featuring 1000 Questions, The Staten Island … Read More
Scenes from an Italian Restaurant
A bottle of red, a bottle of white, Whatever kind of mood you’re in tonight I’ll meet you anytime you want In our Italian Restaurant. Billy Joel A twenty something professional trader enters Zagat’s highest rated Italian restaurant in Soho for a free dinner with a founding partner of his firm. It’s Soho so all this was preceded by four … Read More
A Conversation on a Prop Desk
Trader Casey,”Bella what do you think of my OCR short at 22.50 today?” “What was your plan?” I asked. “I wanted to catch the move from 22.50 to 22.10, the next level.” “What was your stop?” “Bella it was 22.52.” “You probably would have needed a stop of 22.66 for that play to work consistently. So you would have had … Read More
On the Wrong Side of These Health Care Trades
Just got back from a 5AM run. It occurred to me as I evaded a two foot rat, dodged the lightening, and got soaked with my morning run in Central Park that I am on the wrong side of a few health care trades. Picked up a Passion Iced Tea at SBUX after my run. How come Stevia is not … Read More
DNDN- A Replay
Before the Open I asked SMB Trader CST, “What are you looking at?” “I am thinking of trading DNDN Bella. I am looking for an opening drive.” I checked briefing.com: Dendreon: Provenge launch is on track The market reacted positively to this news as DNDN was gapping up. On our long term charts 37.50 and 40 were the next important … Read More