One type of price action that puts me on alert for a hard down move in the market is unusually large gyrations in quick succession. That is what is what we saw during the first few hours of trading today. Points 1&2 on the chart show up and down moves larger than the ATR of the SPY. This type of … Read More
A Well-Priced Deal: $DDD
Publicly traded companies sometimes choose to raise capital by issuing more shares. This allows them to have more working capital without the burden of taking on debt. The better run companies tend to do “secondaries” (according to Wikipedia “secondary” is a misnomer and this type of deal is a “follow on” offering) when their stocks have run up quite a … Read More
Trade Review: $CLF
In this video snippet from the May 10th morning meeting I discuss a Second Day Play in CLF that was traded the prior day and advise our traders to look for this setup again. To watch the video please sign up below: If you would like Steve Spencer’s Trade Review videos to arrive directly to your inbox as they become … Read More
My Stupid Trade in $QIHU
A few days ago my trading clerk asked me to take a look at QIHU. It had exploded above its ATH on heavy volume. I didn’t take a trade in it on Day 1 but made a note of the 36.50 pullback low after its Opening Drive. On Day 2 after a stock has broken out I like to get … Read More
My Thought Process: $AAPL
Here is a timeline of my trading thought process starting on April 24th the morning after AAPL reported earnings through April 29th. I want to put this first StockTweet in context. After AAPL released their earnings report trading was halted. AAPL announced a capital plan to return about $100 billion dollars to shareholders via dividends and stock buybacks. They reported … Read More
Don’t Be a Trading Cliché
The trader who doesn’t like to share ideas and strategies with others because they actually believe their techniques are so special that they will lose their “edge” if they share. seriously. The trader who fades every gap The trader who trades every gap for a continuation The trader who thinks that reviewing your important trades is “second guessing” or “monday … Read More
My Thought Process: $NFLX
NFLX had a very powerful downtrend the prior day when it broke the March 28th support of 188.70. I was continuing to monitor it for a break of the 180-179 area. I missed the initial short entry on the Open when it held below 182. As luck would have it I returned to the desk just as NFLX was spiking … Read More
Did My Exit Make Sense?
Yesterday I had an alert set for BIIB at 192 as it was support into the Close the previous trading day. In stocks that are in strong uptrends I like to buy at this price level if I see support on the tape. After pulling back to 192 BIIB moved sideways for over an hour moving above and below this … Read More