{"id":13110,"date":"2011-07-11T14:53:16","date_gmt":"2011-07-11T18:53:16","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=13110"},"modified":"2011-07-12T15:11:01","modified_gmt":"2011-07-12T19:11:01","slug":"inside-a-traders-brain-spy","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/inside-a-traders-brain-spy","title":{"rendered":"Inside a Trader&#8217;s Brain (SPY)"},"content":{"rendered":"<p><a href=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/07\/SPY.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-13112\" title=\"SPY\" src=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/07\/SPY.png\" alt=\"\" width=\"590\" height=\"560\" srcset=\"\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/07\/SPY.png 590w, \/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2011\/07\/SPY-300x284.png 300w\" sizes=\"auto, (max-width: 590px) 100vw, 590px\" \/><\/a><\/p>\n<p>1) Short.\u00a0 Aggressively Short.\u00a0 Europe was down across the board 1 percent.\u00a0 We had new specific breaking bad news in Italy.\u00a0 Our markets have climbed very quickly of late.\u00a0 The next support level in SPY is 132-132.20.\u00a0 Or much lower.<\/p>\n<p>For the intraday trader fading below this level on the long side is poor trading.\u00a0 There are some traders with so much trading skill they can get away with fading below this 132.72 SPY.\u00a0 But this is still poor trading.<\/p>\n<p>Look trading is hard.\u00a0 I am sure some faded the move below SPY 132.75 and do not need this writer to beat them down.\u00a0 There are not many instances where I will state one point of view is the only point of view.\u00a0 But long below these levels is stepping in front of the train waiting to get run over.\u00a0 If you are getting long below this level you are wrong!<\/p>\n<p>2) Lighten up and manage your shorts.\u00a0 This is now a nice downmove from the open.\u00a0 And we are at our important support level.\u00a0 I am not flat.\u00a0 Steve in my office after the open was an advocate of flat here.\u00a0 I am slow to cover in a market with this much potential downside today.\u00a0 I am down to 1\/3 of my short positions and waiting.\u00a0 I want to short more into a pop.<\/p>\n<p>I exchanged this gchat with one of our traders during this downmove:<\/p>\n<blockquote>\n<div>10:19 AM\u00a0Alex:  think im going to lock in my morning here. was in good plays, should  have had more size so I could still be in them, but dont want to chase<\/div>\n<div>10:20 AM\u00a02 plays short SWC and shor RIG<\/div>\n<div>me: what is the next support in those stocks and the mkt?<\/div>\n<div>10:21 AM\u00a0Alex: I didnt think SWC could go this far&#8230;now it looks like $20<\/div>\n<div>RIG 60.00<\/div>\n<div>10:22 AM\u00a0SPY 132 is support<\/div>\n<div>definitely still opportunity if I wait for things to develop<\/div>\n<div>me: ok up to you.  just think thru things the right way and make a decision that makes sense to you<\/div>\n<table cellspacing=\"1\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td>\n<hr size=\"1\" noshade=\"noshade\" \/><\/td>\n<td>57 minutes<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<div>11:20 AM\u00a0Alex: RIG went to 60, SWC went to 20, SPY to 132 hah<\/div>\n<\/blockquote>\n<div>After the open I spoke with our newest trainees.\u00a0\u00a0 I emphatically made a point using this exchange above.\u00a0 With the intraday fundamentals today you must give your shorts some room to work.\u00a0 There must be a Reason2Cover.\u00a0 The most likely reason in SWC was 20 or when SPY touch 132.\u00a0 This was not a day to cover too early.\u00a0 Too much risk to do so.<\/div>\n<p>3) Short into the pop.\u00a0 I do not care if we get taken out higher.\u00a0 What is the right thing to do?\u00a0 Short into the upmove and hold for a move back to 132 and perhaps below.<\/p>\n<p>4) I did not add this on the chart.\u00a0 But below 132 SPY and I want to short more for another potentially big downmove.\u00a0 I am not sure we can get this next huge downmove today.\u00a0 I would prefer if we can cleanly hold below the 132 SPY and move away from this price confirming another down-leg.<\/p>\n<p><a href=\"http:\/\/twitter.com\/smbcapital\"><img decoding=\"async\" src=\"http:\/\/twitter-badges.s3.amazonaws.com\/follow_me-c.png\" alt=\"\" \/><\/a><br \/>\nMike Bellafiore<\/p>\n<p>Author, <a href=\"http:\/\/www.amazon.com\/gp\/product\/0470529407\/ref=s9_simh_gw_p14_d2_i1?pf_rd_m=ATVPDKIKX0DER&amp;pf_rd_s=center-3&amp;pf_rd_r=1AKEC2RSWP089J7W507X&amp;pf_rd_t=101&amp;pf_rd_p=470938811&amp;pf_rd_i=507846\">One Good Trade<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>1) Short.\u00a0 Aggressively Short.\u00a0 Europe was down across the board 1 percent.\u00a0 We had new specific breaking bad news in Italy.\u00a0 Our markets have climbed very quickly of late.\u00a0 The next support level in SPY is 132-132.20.\u00a0 Or much lower. For the intraday trader fading below this level on the long side is poor trading.\u00a0 There are some traders with &#8230; <a href=\"https:\/\/www.smbtraining.com\/blog\/inside-a-traders-brain-spy\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":144,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[10],"tags":[81,1193,653,1354,1349],"class_list":["post-13110","post","type-post","status-publish","format-standard","hentry","category-mike-bellafiore-bellas-blogs","tag-smb-training","tag-trader-education","tag-trader-training","tag-trading-coach","tag-trading-mentor","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>Inside a Trader&#039;s Brain (SPY) | 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\/inside-a-traders-brain-spy\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Inside a Trader&#039;s Brain (SPY) | SMB Training\" \/>\n<meta property=\"og:description\" content=\"1) Short.\u00a0 Aggressively Short.\u00a0 Europe was down across the board 1 percent.\u00a0 We had new specific breaking bad news in Italy.\u00a0 Our markets have climbed very quickly of late.\u00a0 The next support level in SPY is 132-132.20.\u00a0 Or much lower. For the intraday trader fading below this level on the long side is poor trading.\u00a0 There are some traders with ... 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