In this video Steve discusses BIDU’s price action from the first week of August and several good risk/reward trading opportunities. Steven Spencer is the co-founder of SMB Capital and SMB University and has traded professionally for 17 years. His email is [email protected]. He is currently long BIDU.
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
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
Divining Inflection Points– $SPY
From January to May 22nd I probably traded the SPY less then ten times in total. Today marked the fourth consecutive day I traded the market via the SPY. I trade whatever is In Play. And right now the market is In Play. The most useful price level in the past three trading days has been 157.50. Useful in that it … 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
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
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