{"id":1076,"date":"2009-06-15T13:06:24","date_gmt":"2009-06-15T18:06:24","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1076"},"modified":"2009-06-15T13:52:29","modified_gmt":"2009-06-15T18:52:29","slug":"trading-both-sides-rmbs","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/trading-both-sides-rmbs","title":{"rendered":"Trading Both Sides- RMBS"},"content":{"rendered":"<p>RMBS was In Play on Friday and we made some chops long on a slow summer day to its resistance, 17.80. \u00a017.80 was an important technical level. \u00a0RMBS collapsed from this level previously (see chart below). \u00a017.80 was an inflection point for us on Friday and on Monday. \u00a0And we made money on both sides using our trading skills. \u00a0Let&#8217;s discuss.<\/p>\n<p>Trading is not just about finding levels and then taking positions for most intraday traders. \u00a0If it were that easy you would not be reading this blog. \u00a0Trading skills enable the intraday trader to determine when some levels will be violated and when some levels will hold. \u00a0 We combine our tape reading skills, with our charting skills and our short term intraday fundamental analysis to determine which resistance levels will hold. \u00a0For example, on Friday we determined that the 17.80 RMBS level would hold.<\/p>\n<p>1) There was more selling on the offer as RMBS neared 17.80. \u00a02) There was a double intraday top at this level. \u00a0 3) The longer term chart showed significant resistance. \u00a04) The buyers were hesitant to pay as aggressively above 17.75. \u00a05) The news was not so important as to cause a violation of this significant resistance level on a first test. \u00a0 I lightened up with my intraday long position. \u00a0Steve got short and caught a 50c downmove.<\/p>\n<p>Today we saw the strength from the tape in RMBS. \u00a0The pullback was shallow on Friday from the important resistance level. \u00a0RMBS was heading towards the 17.80 resistance level again. \u00a0The buying near this level today was aggressive. \u00a0After 17.80 held the bid, we got long. \u00a0When the bid held 85c, we got longer. \u00a0When the bid held above 90c, we got even longer. \u00a0RMBS traded up another point. \u00a0Chop!<\/p>\n<p>We did not just rely on the charts to make decisions. \u00a0We watched the order flow, used some fundamental analysis to weigh the new news in RMBS from Friday, and read our charts. \u00a0Doing so allowed us to make chops on the short and long side trading RMBS on two seperate days.<\/p>\n<p>When I write about reading the tape and <a href=\"http:\/\/www.smbtraining.com\/\">learning how to trade<\/a> this is exactly what I mean. \u00a0When I discuss developing trading skills to profit in any market these are the skills that are necessary. \u00a0Trading is not about making calls. \u00a0Trading is not just about reading charts. \u00a0Trading is about skill development such that you can trade a Stock in Play on either side. \u00a0 Just check out the trading in RMBS the past two trading days.<\/p>\n<p>Best of luck with your trading.  Don&#8217;t forget to <a href=\"http:\/\/twitter.com\/smbcapital\">follow us on Twitter!<\/a>.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-1079\" title=\"RMBS 6-month 06-15-09\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/06\/RMBS-6-month-06-15-09.bmp\" alt=\"RMBS 6-month 06-15-09\" \/><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-full wp-image-1075\" title=\"RMBS 2-day 06-15-09\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/06\/RMBS-2-day-06-15-09.bmp\" alt=\"RMBS 2-day 06-15-09\" \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>RMBS was In Play on Friday and we made some chops long on a slow summer day to its resistance, 17.80. \u00a017.80 was an important technical level. \u00a0RMBS collapsed from this level previously (see chart below). \u00a017.80 was an inflection point for us on Friday and on Monday. \u00a0And we made money on both sides using our trading skills. \u00a0Let&#8217;s &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/trading-both-sides-rmbs\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":281,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1,10],"tags":[4676,30,314,18],"class_list":["post-1076","post","type-post","status-publish","format-standard","hentry","category-general-comments-2","category-mike-bellafiore-bellas-blogs","tag-day-trading","tag-prop-trading","tag-rmbs","tag-smb-capital","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>Trading Both Sides- RMBS | 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\/trading-both-sides-rmbs\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Trading Both Sides- RMBS | SMB Training\" \/>\n<meta property=\"og:description\" content=\"RMBS was In Play on Friday and we made some chops long on a slow summer day to its resistance, 17.80. \u00a017.80 was an important technical level. \u00a0RMBS collapsed from this level previously (see chart below). \u00a017.80 was an inflection point for us on Friday and on Monday. \u00a0And we made money on both sides using our trading skills. \u00a0Let&#8217;s ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/trading-both-sides-rmbs\" \/>\n<meta property=\"og:site_name\" content=\"SMB Training Blog\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/smbcap\/\" \/>\n<meta property=\"article:published_time\" content=\"2009-06-15T18:06:24+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2009-06-15T18:52:29+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/06\/RMBS-6-month-06-15-09.bmp\" \/>\n<meta name=\"author\" content=\"ajames\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:site\" content=\"@smbcapital\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"ajames\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" 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