I believe Bella said it best yesterday in his post “Don’t start your vacation before your vacation”. AIG was a party all day long. Talk about crazy opportunity on this hot summer day. I want to highlight a few trading levels from today that will be important for tomorrow. First let me just say the following: For the first time … Read More
Update of the SMB Reading the Tape Program
Lately we have been receiving many inquiries from our fellow readers wanting to learn more about tape reading. We are NOT ignoring your emails and comments in our blogs! Unfortunately tape reading is a complex and extended topic that cannot be covered in a handful of paragraphs. However, because of the high demand we are currently working on developing a … Read More
Question From a New Trader
I received the following inquiry from one of our talented new traders while going over our mentoring spreadsheet. “I took a pretty big rip late in the day in this stock and wanted to know if I got out of it the right way; there was a battle between 48.12 and 48.15 and I paid for 100 at 48.16 when … Read More
Reviewing Your Work
I was out on the West Coast interviewing some candidates at UC Berkeley last Friday. It sure was nice out there! Mid 70s in the middle of November, really? Oh boy do I miss that awesome weather!. One of the interviewees with a bit of experience in trading his own account asked me a question that I thought was interesting. … Read More
That’s a Good One Mr. PhD
It must be good to be a PhD quant for a hedge fund with plenty of money to spare. It is no secret that PhD quants get paid very well for the value they add to a fund. The funny thing is that a vast majority of these geniuses will hardly ever be good active equity traders. Yes thats right, … Read More
DF sell the gap up
As we discussed this morning in the morning meeting (it is lunch time right now) we looked into selling that gap in DF if we spotted a seller. One of our traders spotted a big ARCA seller at 20.50 who stepped lower to 20.35 and traded a couple hundred thousand shares on the offer. The same seller stepped lower to … Read More
re: RIMM Weakness
RIMM showing weakness in the pre market. probably due to the WSJ article talking about people overestimating growth and underestimating risk in the consumer market. I have covered the majority of my overnight short position as it has failed to hold an offer below 139. Will look for resistance at 140.50 level after the market opens for a safe entry … Read More
One annoying computer program
Lately I have spotted a new computer program in my stocks and I think its important to briefly talk about these silly games. In our training program we talk about catalysts in a stock before making its move. There are plenty of times when you can see the buying/selling in a stock but it needs something to make the stock … Read More