For the most part as expected the market has been quiet this holiday week. This is clearly demonstrated by this screenshot of theSMB Radar. We use color coding throughout each list to quickly assess how In Play any given name is. Red indicates “hot” and blue indicates “cold”. I know–we are so clever. Overall, when you see 90% of the … Read More
Oh—-The Pain!
During today’s morning meeting we discussed some of the recent reversals we had seen in stocks that were trying to push through longer term support. We took a look at reversals that had recently occurred in MON and WYNN. Both stocks attempted to drop longer term support last week but failed. So I suggested that UAL might be a good … Read More
Higher Time Frame
The concept of a “higher time frame” can have a positive impact on your trading results. In other words whichever time frame you are observing price action to make a trading decision you should consider a longer time frame to assist you. In my experience you can increase your win rate if you make trades in the direction of the … Read More
You Gotta Have A “Plan B”
Each morning we hold an AM Meeting at SMB to discuss the Stocks In Play as well as the bigger picture including global markets, unusual activity in commodities, and the US markets via the SPY. If a particular type of “day structure” is likely to occur that will be discussed as well. This morning with global markets humming and the … Read More
Traders Ask: What Was Your Thought Process In LVS?
Hi Steve, I am interested in learning your thought process behind trading LVS on 12/02. Do you mind writing a post on it? Thanks, AZ Here you go: Before I break down the various trades that I thought offered good risk/reward on December 2nd for LVS I would like to discuss December 1st. LVS gapped higher on 12/1 with the … Read More
The Money Trade
This is the setup that has offered the highest win rate intraday since the beginning of October and the greatest risk/reward ratio. It is the setup that I chose to write about in a very cool trading book that will be released in 2011 and I discussed it last week in Vegas during our tape reading/intraday swing lecture. The Criteria: … Read More
The Hedge Fund Analyst
In this morning’s AM meeting I joked about the fund’s that were caught short in today’s gap up in DKS. Whenever I come across a stock that is heavily shorted like a DKS I try to put myself in the shoes of the people who think it is worthwhile to get short such a stock. It isn’t hard for me … Read More
More Harm Than Good
At 10 o’clock today I started scanning the SMB Radar for stocks with promising setups from the Open. WCRX immediately caught my attention. It had had a strong opening drive to the downside and had retraced about 20% from its low. This was a good short candidate. But then I noticed on the tape that buyers had started to support … Read More