I have been long VMW since I bought it yesterday at the Open around 79.50. It closed near its high so I held it as a swing position. This morning I bid for more stock about $1 below where it closed yesterday, which had been the prior day’s morning resistance (see chart below). My bid got hit before the market … Read More
Trading AAPL Tomorrow?
If you would like to learn how to think like a professional trader pick up a copy of The Playbook today! Top 10 in Amazon Finance and from the author of One Good Trade the #1 Trading book in 2010. Here is my thought process going into tomorrow’s trading for AAPL: AAPL initial reaction was positive due to a combination of lowered … Read More
NFLX is the New AMZN?
Netflix is the new Amazon. What does this mean? It means for the foreseeable future hedge funds will step in and buy this name on every large dip and it will continue to have huge breakouts after periods of consolidation. Why is this the case? In the case of AMZN it got enough large players in the market to buy … Read More
Mastering Breakouts: Do You Have a System to Identify and Trade Breakouts?
I read a statistic several years ago that the majority of what traders call “breakouts” fail. For this very reason there are algorithmic trading programs that fade breakouts. And there are some manual traders who love to fade all breakouts as well. There are many others who like to load up in the direction of the breakout 100% of the … Read More
The Falling Knife Trade– $AAPL
I bought AAPL on the Open today. One of my favorite trades in the first few minutes of the Open is entering a position on a quick dropout to the prior afternoon support. I make this trade in a stock that is trending higher on a multi-day time frame in the hope of getting an excellent risk/reward entry. AAPL close … Read More
Muscle Memory and Patience II–Trading $AAPL
In my previous post on stock “muscle memory” I discussed the three types of MM. I want to revisit the topic and see how we used the same concept while tracking AAPL’s price action for the past few weeks. On June 12th AAPL traded below 435 after not breaching that level for several weeks. After a few days of consolidation … Read More
Muscle Memory and Patience–Trading $ACAD
I like to say that stocks have “muscle memory”. There are several possible meanings for this expression: 1) A stock will repeat a strong move from a particular inflection point–this applies to both intra-day and daily levels; 2) A stock will move with a particular “cadence” intra-day that can be gamed to the trader’s advantage (or ignored to their detriment); … Read More
The Window Undressing
I’m not sure when I first started reading about “window dressing” in the market. It may have been while reading Jim Cramer in the 90’s where he talked about the things managers would do to keep themselves from being fired. The basic idea is that managers would adjust their portfolios at the end of a fiscal period so it appeared … Read More