How to find the best stocks into the close

Good afternoon Mr. Bellafiore,

I hope this message finds you well. I received your email by attending the event you spoke at in DC (which was really Rockville, MD).

I read your blog everyday & find it extremely helpfull for my trading. I also completed the SMB Foundation ealiear this year. That’s an incredible program!

The reason I’m reaching out is b/c I have a problem identifying stocks to trade in to the Close. Could you right a blog or respond to this email in regards to that subject?

Even to be more specific, could you write about identifying stocks in to the Close w/o using the radar?

I look forward to starting Trader Development soon. Many thanks in advance for your time.

Bella Responds

1. My first option is to stick with a stock I have been trading all day that is In Play. You will have paid for very important intraday information that you can use to make excellent risk/reward trades into the close. An example of a stock you might stay with all day was HPQ on Friday. Even thought it didn’t move into the close below 23.40 and it was most likely gonna tank and above 23.70 it could have found 25.

2. If you sit on a trading desk or trade on a virtual floor a good exercise is to ask others what they are trading. Shark what are you trading? Kevin what are you looking at? Andrew what do you have? This gives you some ideas for you into the close.

3. The SMB Radar that we developed has an in play ranking. Anything above a 3 on the in play ranking should get your attention into the close. Technology allows us to build tools to save us a lot of time. If you asked me this question 5 years ago I might answer something about looking at highs and lows filters. But we can do better than that today. We can narrow our search down to stocks truly In Play.

4. A squawk box helps. Keep that on and you will most likely hear a chirp about Chairman Blankfein hiring a defense attorney and getting first dibs on the GS shorts.

5. In this market ETFs and market stocks have worked well. You want to rip through your charts and have select prices that are most meaningful in your market stocks. If C gets above what price is it a great long? If C gets below what price is it a great short?

How do you find stocks to trade into the close?

Bella

One Good Trade