{"id":10585,"date":"2011-03-28T20:56:29","date_gmt":"2011-03-29T00:56:29","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=10585"},"modified":"2011-03-28T20:56:29","modified_gmt":"2011-03-29T00:56:29","slug":"a-lulu-lesson","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/a-lulu-lesson","title":{"rendered":"A LULU Lesson"},"content":{"rendered":"<p>There wasn\u2019t a lot of fresh news today so the focus of SMB\u2019s AM Meeting was Second Day Plays and Technical Setups.\u00a0 SDPs are setups in stocks that were In Play the prior trading day and tend to offer some well defined opportunities for a few more trading sessions.\u00a0 TSs are setups based on a longer time frame technical pattern that may trigger intraday.\u00a0 One of the toughest things for a less experienced trader is whether a TP is \u201cworking\u201d and worth their attention intraday.\u00a0 A good rule of thumb is to look for unusual volume in a stock prior to its reaching the longer term technical level.\u00a0 Often, the momentum players will start accumulating a position prior to a stock hitting the key level so that they are in a position of strength by the time others are jumping on the bandwagon.\u00a0 This is especially true for momentum type names like LULU, NFLX, DECK, and FOSL to name a few.<\/p>\n<p>In today\u2019s AM Meeting the first TS discussed was <a href=\"file:\/\/\/C:\/Documents%20and%20Settings\/Steve\/My%20Documents\/My%20Dropbox\/blog%20charts\/Gameplan3-28-11.pdf\">LULU<\/a>.\u00a0 If it were to have a strong opening drive that would be our clue that the technical setup, which was a break above 81.50, would bring a move towards the all time high near 86.\u00a0 On the Open I was watching my overnight RIMM short as well looking to get long POT into a pullback to 57.80.\u00a0 I missed LULU\u2019s opening drive to 81.50.\u00a0 I was a bit disappointed but not overly so as I believed both RIMM and POT had major potential for moves today.\u00a0 The experienced trader sitting to my right said \u201care you trading LULU?\u201d\u00a0 I grouchily replied \u201cNO\u201d.<\/p>\n<p>I started to watch LULU which by 9:50AM was a top several categories on the SMB Radar. \u00a0<a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/radar-march-28th.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-10586\" title=\"radar march 28th\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/radar-march-28th-300x217.jpg\" alt=\"\" width=\"240\" height=\"174\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/radar-march-28th-300x217.jpg 300w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/radar-march-28th.jpg 334w\" sizes=\"auto, (max-width: 240px) 100vw, 240px\" \/><\/a>I had missed the initial 3 point pop, but would I find a way to work my way into for the second leg.\u00a0 Truth be told I knew I wouldn\u2019t participate in the second leg as I was about to get up from the desk to work on firm business.\u00a0 But this was a scenario that should have any experienced day trader watering at the mouth.\u00a0 A momentum stock has shown you the strength on the Open.\u00a0 In case you doubt your own eyes just glance up at the Radar which confirms LULU\u2019s strength and high IPR (In Play Rank).\u00a0 This is a stock where you focus your attention.\u00a0 Start to do the math in your head.\u00a0 Is there a 1:5 risk\/reward trade to be made?\u00a0 Of course there is.\u00a0 Probably a 1:10 if it has a decent horizontal consolidation after putting in the morning high.<\/p>\n<p>There are very few people who consistently pull money out of the equities markets each day.\u00a0 If you are one of those who has already made it to that level and want to achieve a much higher level then start working on the following skill.\u00a0 Identify where the \u201cbig money\u201d is flowing (@TraderFlorida repeatedly and almost annoyingly discusses these names).\u00a0 Understand these are the stocks that can dramatically change your weekly, monthly and yearly performance.\u00a0 And I\u2019m not saying it will be easy.\u00a0 I can count the number of traders on one hand we have trained in the past 4 years who have shown the skill, balls, and mentality to crush this scenario in LULU or the other momo names mentioned above.<\/p>\n<p style=\"text-align: center;\"><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/lulu-march-28th.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-10587\" title=\"lulu march 28th\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/lulu-march-28th.png\" alt=\"\" width=\"520\" height=\"364\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/lulu-march-28th.png 650w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/03\/lulu-march-28th-300x210.png 300w\" sizes=\"auto, (max-width: 520px) 100vw, 520px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>There wasn\u2019t a lot of fresh news today so the focus of SMB\u2019s AM Meeting was Second Day Plays and Technical Setups.\u00a0 SDPs are setups in stocks that were In Play the prior trading day and tend to offer some well defined opportunities for a few more trading sessions.\u00a0 TSs are setups based on a longer time frame technical pattern &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/a-lulu-lesson\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":143,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8,3,456],"tags":[1377,1457],"class_list":["post-10585","post","type-post","status-publish","format-standard","hentry","category-steven_spencer_steves_blogs","category-technical_plays","category-trader_development","tag-l","tag-ll","no-post-thumbnail"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>A LULU Lesson | SMB Training<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.smbtraining.com\/blog\/a-lulu-lesson\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A LULU Lesson | SMB 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