{"id":1588,"date":"2009-07-28T20:56:34","date_gmt":"2009-07-29T01:56:34","guid":{"rendered":"http:\/\/www.smbtraining.com\/blog\/?p=1588"},"modified":"2009-07-29T07:42:34","modified_gmt":"2009-07-29T12:42:34","slug":"the-pattern","status":"publish","type":"post","link":"https:\/\/www.smbtraining.com\/blog\/the-pattern","title":{"rendered":"The Pattern"},"content":{"rendered":"

As traders we are always looking for patterns.\u00a0 If we can spot a trading pattern that repeats itself (at least for awhile) we have an edge<\/a>.\u00a0 When people hear the word “pattern” they usually think of a visual pattern.\u00a0 For traders this would typically be represented as a particular chart pattern.\u00a0 For those of us who read the tape it might be a pattern we recognize on the Level II.\u00a0 But the pattern I want to discuss today is a behavioral pattern.<\/p>\n

In the two weeks since earnings season began it is VERY clear that the easiest money is made the second trading day AFTER a company reports their numbers.\u00a0 It started with GS, then AAPL, then AMZN and today AET.\u00a0 To be totally frank I haven’t capitalized on these great moves.<\/p>\n

The following very simple setups occurred in the above stocks<\/p>\n

1) GS after reporting great numbers traded in a tight range on heavy volume.\u00a0 The following day when it went above the previous day’s high it ran 5 points.\u00a0 By the way, this level had been highlighted by our own Jtoma on Fast Money about a month ago.<\/p>\n

2) AAPL traded down to 155.55 the day after its earnings before having a 3 point up move.\u00a0 This level had been previously identified by Gman in after hours trading as major support after AAPL released its numbers.\u00a0 He shared it on our AM Ideas sheet for all traders on the desk.\u00a0 I think he may have tweeted it as well.\u00a0 I actually had an alert for this level but when it was triggered I had a large ebay position and I was too slow to set a stop order on my position before flipping over to AAPL.<\/p>\n

3) AMZN traded below its 85.70 support from the prior afternoon and dropped over one point rather quickly.\u00a0 Just a simple follow through to the downside on a stock that traded weakly after reporting so so numbers.<\/p>\n

4) AET traded in a very small range yesterday after reporting numbers that the Street initially seemed not to like.\u00a0 But AET was actually STRONG yesterday despite finishing negative on the day.\u00a0 At 8:00AM yesterday I bought at $23 per share when the bid held.\u00a0 The stock rallied very easily in the pre market and right on the Open to above $25 per share.\u00a0 It closed in the upper 10% of its trading range.\u00a0 So you should be on the alert for upside follow through today.\u00a0 And we were.\u00a0 We discussed a great entry point at 25.25 in the AM Meeting.\u00a0 But we didn’t discuss WHERE to buy it on an upside breakout.\u00a0 Not to hard to figure that one out.\u00a0 After it filled the previous day’s gap to 26.50 you pay above that level.\u00a0 Guess what happened?\u00a0 2.5 point up move above 26.50.<\/p>\n

Honestly, as I write these words I’m pretty angry, disappointed and frustrated with my lack of capitalizing on these moves.\u00a0 It would be easy to say to myself well Steve you haven’t been trading the entire day for the past two weeks (other firm projects) so you are gonna miss some good moves.\u00a0 Or you found better fresh In Play stocks so it is understandable that you missed some of those moves.\u00a0 That would be nonsense.\u00a0 It was clear over one week ago that this pattern was developing: good follow through in both strong and week earnings stocks.\u00a0 This is a characteristic of a strong and healthy trading market.\u00a0 As a professional trader it is my JOB to capitalize.<\/p>\n

If you have been professionally day trading for more than one year and you trade stocks such as GS, AMZN, and AAPL then there really is no excuse for you not to have chopped it up in these names the past two weeks.<\/p>\n

There are no excuses in TRADING (right Tom Hanks).<\/p>\n

\"GS<\/p>\n

\"AAPL<\/p>\n

\"AMZN<\/p>\n

\"AET<\/p>\n","protected":false},"excerpt":{"rendered":"

As traders we are always looking for patterns.\u00a0 If we can spot a trading pattern that repeats itself (at least for awhile) we have an edge.\u00a0 When people hear the word “pattern” they usually think of a visual pattern.\u00a0 For traders this would typically be represented as a particular chart pattern.\u00a0 For those of us who read the tape it … 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":[8,15],"tags":[],"class_list":["post-1588","post","type-post","status-publish","format-standard","hentry","category-steven_spencer_steves_blogs","category-trading_theory","no-post-thumbnail"],"yoast_head":"\nThe Pattern | 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\/the-pattern\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Pattern | SMB Training\" \/>\n<meta property=\"og:description\" content=\"As traders we are always looking for patterns.\u00a0 If we can spot a trading pattern that repeats itself (at least for awhile) we have an edge.\u00a0 When people hear the word “pattern” they usually think of a visual pattern.\u00a0 For traders this would typically be represented as a particular chart pattern.\u00a0 For those of us who read the tape it ... Read More\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.smbtraining.com\/blog\/the-pattern\" \/>\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=\"2009-07-29T01:56:34+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2009-07-29T12:42:34+00:00\" \/>\n<meta property=\"og:image\" content=\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp\" \/>\n<meta name=\"author\" content=\"sspencer\" \/>\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=\"sspencer\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern\"},\"author\":{\"name\":\"sspencer\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27\"},\"headline\":\"The Pattern\",\"datePublished\":\"2009-07-29T01:56:34+00:00\",\"dateModified\":\"2009-07-29T12:42:34+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern\"},\"wordCount\":633,\"commentCount\":3,\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp\",\"articleSection\":[\"Steven Spencer (Steve's) Blogs\",\"Trading Theory\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/the-pattern#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern\",\"name\":\"The Pattern | SMB Training\",\"isPartOf\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage\"},\"thumbnailUrl\":\"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp\",\"datePublished\":\"2009-07-29T01:56:34+00:00\",\"dateModified\":\"2009-07-29T12:42:34+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.smbtraining.com\/blog\/the-pattern\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/the-pattern#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.smbtraining.com\/blog\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"The Pattern\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#website\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"name\":\"SMB Training Blog\",\"description\":\"Lessons from the trading desk\",\"publisher\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#organization\",\"name\":\"SMB Training\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"contentUrl\":\"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png\",\"width\":230,\"height\":81,\"caption\":\"SMB Training\"},\"image\":{\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/\"},\"sameAs\":[\"https:\/\/www.facebook.com\/smbcap\/\",\"https:\/\/x.com\/smbcapital\",\"https:\/\/www.youtube.com\/user\/smbcapital\"]},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27\",\"name\":\"sspencer\",\"url\":\"https:\/\/www.smbtraining.com\/blog\/author\/sspencer\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"The Pattern | SMB Training","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.smbtraining.com\/blog\/the-pattern","og_locale":"en_US","og_type":"article","og_title":"The Pattern | SMB Training","og_description":"As traders we are always looking for patterns.\u00a0 If we can spot a trading pattern that repeats itself (at least for awhile) we have an edge.\u00a0 When people hear the word “pattern” they usually think of a visual pattern.\u00a0 For traders this would typically be represented as a particular chart pattern.\u00a0 For those of us who read the tape it ... Read More","og_url":"https:\/\/www.smbtraining.com\/blog\/the-pattern","og_site_name":"SMB Training Blog","article_publisher":"https:\/\/www.facebook.com\/smbcap\/","article_published_time":"2009-07-29T01:56:34+00:00","article_modified_time":"2009-07-29T12:42:34+00:00","og_image":[{"url":"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp","type":"","width":"","height":""}],"author":"sspencer","twitter_card":"summary_large_image","twitter_creator":"@smbcapital","twitter_site":"@smbcapital","twitter_misc":{"Written by":"sspencer","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern#article","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern"},"author":{"name":"sspencer","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27"},"headline":"The Pattern","datePublished":"2009-07-29T01:56:34+00:00","dateModified":"2009-07-29T12:42:34+00:00","mainEntityOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern"},"wordCount":633,"commentCount":3,"publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage"},"thumbnailUrl":"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp","articleSection":["Steven Spencer (Steve's) Blogs","Trading Theory"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.smbtraining.com\/blog\/the-pattern#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern","url":"https:\/\/www.smbtraining.com\/blog\/the-pattern","name":"The Pattern | SMB Training","isPartOf":{"@id":"https:\/\/www.smbtraining.com\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage"},"thumbnailUrl":"http:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp","datePublished":"2009-07-29T01:56:34+00:00","dateModified":"2009-07-29T12:42:34+00:00","breadcrumb":{"@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.smbtraining.com\/blog\/the-pattern"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern#primaryimage","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2009\/07\/GS-2-day-07-15-09.bmp"},{"@type":"BreadcrumbList","@id":"https:\/\/www.smbtraining.com\/blog\/the-pattern#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.smbtraining.com\/blog"},{"@type":"ListItem","position":2,"name":"The Pattern"}]},{"@type":"WebSite","@id":"https:\/\/www.smbtraining.com\/blog\/#website","url":"https:\/\/www.smbtraining.com\/blog\/","name":"SMB Training Blog","description":"Lessons from the trading desk","publisher":{"@id":"https:\/\/www.smbtraining.com\/blog\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.smbtraining.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.smbtraining.com\/blog\/#organization","name":"SMB Training","url":"https:\/\/www.smbtraining.com\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","contentUrl":"https:\/\/www.smbtraining.com\/blog\/wp-content\/uploads\/2022\/07\/Logo-e1658419502954.png","width":230,"height":81,"caption":"SMB Training"},"image":{"@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/smbcap\/","https:\/\/x.com\/smbcapital","https:\/\/www.youtube.com\/user\/smbcapital"]},{"@type":"Person","@id":"https:\/\/www.smbtraining.com\/blog\/#\/schema\/person\/8eabc642d328f902a341eb510c67ef27","name":"sspencer","url":"https:\/\/www.smbtraining.com\/blog\/author\/sspencer"}]}},"_links":{"self":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/1588","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/users\/143"}],"replies":[{"embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/comments?post=1588"}],"version-history":[{"count":0,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/posts\/1588\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/media?parent=1588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/categories?post=1588"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.smbtraining.com\/blog\/wp-json\/wp\/v2\/tags?post=1588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}