Now is a good time to look back at the #NewNormal and discuss possible trading patterns for US equities for the remainder of 2013. The #NewNormal was a description I came up with in late 2012 to describe the slow steady grind higher in US equities that was rarely interrupted by periods of higher volatility. This state of the market … Read More
Finding The Bounce– $SPY
On Thursday June 20th I wrote “Looking For The Bounce” where I discussed a long SPY trade that never materialized so I exited for a loss. Yesterday, the market setup for another bounce attempt and I took it. Many short term trading setups trigger after three trading days. After the market’s large sell offs on Wednesday and Thursday many short … Read More
Questions on Consistency and Scalability
Steve- Thank you for a great presentation on Tesla last week. I subscribed to the blog for a few months now, but your class was my first real exposure to SMB. It is refreshing to come across a professional trader, not just a professional instructor. I have a couple big picture follow-up questions from the class I hope you will … Read More
Training Session with Steve Spencer: Three Trades on $TSLA
The price action in $TSLA from the past six trading days does a nice job of demonstrating three distinct types of trades. Not all trades makes sense to all traders. But if as a trader you can figure out which of these trades fits your personality best and then build a detailed trading plan on how to attack it next … Read More
One Stock, Three Trades: $TSLA
(This post was written on June 1, 2013) The price action in $TSLA from the past six trading days does a nice job of demonstrating three distinct types of trades. Not all trades makes sense to all traders. But if as a trader you can figure out which of these trades fits your personality best and then build a detailed … Read More
Trade Review: $DDD
This trade review video of DDD discusses a “momentum reversal” short trade Steve made on May 14. 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 available, please subscribe HERE. Steven Spencer is the co-founder of SMB Capital and SMB University and … Read More
My Thought Process: $SPY Selloff
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