In a bull market there are many stocks that drop 10, 20, 30% or more prior to resuming a strong up trend. An important skill is being able to identify likely turning points in market leading stocks. By doing so you can greatly increase the risk/reward for long entries on your intra-day and swing long positions. _________________ Steven Spencer is the … Read More
Trading Shouldn’t Be A Flip of the Coin
Each day I host the SMB AM Meeting. The purpose of the meeting is to make sure that our desk has a game plan to attack the best stocks and setups. Yesterday we looked at Apple, Boeing, Alibaba, and American Airlines. In this video I break down some of the techniques we use to identify the best risk/reward setups. Pay … Read More
Why Large Bank Forecasts are Rarely Correct
I made this short video discussing some of the reasons the headline forecasts for large Wall Street banks are rarely correct. The question you should ask yourself is why do they continue to make them? Most investors are attracted to confidence and certainty. Banks can project these two things partly by stating matter of factly the market will be at … Read More
The Importance of Staying On Point All Day
Trading is a grueling and intense profession. There are stocks, futures, and scanners whirling in front of your face all day. Many traders develop very strong routines to make sure they stay focused and are able to execute their trading plans. In our previous post we discussed the importance of a pre-market routine and how it helped us capitalize on … Read More
The Benefits of Pre-Market Preparation
Profitable trading is a process. That process starts before the market opens. Great traders expect to make money because they stack high-probability ideas into their game plan. Trade management and adjustments are important too, but the stronger the underlying idea, the easier – and more consistently profitable – the trade will be. This post will walk you through the morning … Read More
Bad News–It’s Time To Buy
As a short term trader I scan the market each day for stocks that will be “In Play”. These are stocks that have fresh catalysts which can lead either to a lot of people trying to enter or exit positions at the same time. If I can identify the best opportunities and the likelihood of a strong trend then at … Read More
Business Insider Makes Outlandish Claim
The other day I read a post on the insightful blog “AVC”, which is written by venture capitalist Fred Wilson. The post dealt with Fred’s thoughts on some technology trends for 2015 and beyond. As usual the post was written in clear and measured prose. I took note of his comment that he believed the Apple Watch (iWatch) would not … Read More
The Double Reversal Purple Nurple–$SPY
Today’s market action presented some interesting twists and turns. Around 6AM the SPY got hammered about $3. By the time I turned on my platform we had already bounced around $1. I sold about 25% of my positions and got ready to head for the office. My gut told me that it was OK to sell some stock “in the … Read More