There’s a huge trading opportunity coming up that you’ve identified. You can trade this opportunity with several stocks and/or products. You want to make sure you maximize the profit in this special trade. In this video you will learn how professional traders seize a special trading opportunity. Lets get to work on giving you a glimpse of some of the trading that goes on inside of a proprietary trading firm for these special trading opportunities.
View Video Transcriptthere is a huge trading opportunity
coming up that you have identified
you can trade this opportunity with
several stocks and or
products you want to make sure you
maximize the profit in this special
trade
in this video you will learn how
professional traders seize
a special trading opportunity hi i’m
mike bella fury co-founder of smb
capital
and we’re a proprietary trading firm
located in midtown manhattan
and i’m also the author of the trading
classic one good trade and the playbook
let’s get to work on giving you a
glimpse of some of the trading that goes
on
inside of a proprietary trading form for
these special
trading opportunities
so this is a trade following the uh the
first vaccine news
and uh it’s kind of a long short basket
to capitalize on the vaccine rotation
and uh for relative strength and
weakness-wise for the basket
stay-at-home names were very weak on
this day
and then reopening all like the
reopening plays were very strong
and that’s pretty pretty obvious in
hindsight but there’s a lot of
opportunity within uh
within a bunch of those categories so
i’ll get started off with the
vaccine news and this is uh so this is
three three mondays ago the first
vaccine
and they released a 90 effective vaccine
and this was seen as a very viable way
to control
uh the coronavirus which we previously
haven’t had
and dr fauci had uh a few times
announced that
he would have been happy with the 50 to
60 uh
effective vaccine and then uh pfeiffer
came out with 90
which was a huge beat versus the market
expectations
and then also the ceo kind of hyped it
up he said this is the most significant
medical advance in the last century
which i saw is a pretty bold statement
but this got investors very excited
and then lastly there’s a lot of worries
about joe biden
having another potential lockdown and
after this vaccine and then the few
other ones that rolled out this
pretty much vanished the risk of another
lockdown
seems very very unlikely now a lot of
the names have been hit the hardest from
the pandemic
caught a huge bid following this news so
these are all the different categories
that
were most beneficial to the vaccine
travel
was probably the most important with
airlines and cruise lines
i’ve listed some of the top traded
airlines and cruise lines there
rideshare also got a pretty big bed
with uber and lyft and then you can go
into the entertainment
theme parks and movie theaters
as well as hotel and leisure i was
trading win this day
and win was very strong along with some
of the other uh
kind of top tier hotel chains and then
oil oil was definitely the hardest hit
sector
during the pandemic with a lot of their
demand sharply declining
airlines were using less oil gasoline as
well as the lockdowns and work from home
restricted a lot of driving which i mean
definitely isn’t as
impactful as the airlines and then
financials also caught
a pretty big bid with uh jp morgan
uh leading this category and a lot of
people looked at this as a
kind of like a leadership rotation out
of these growth and tech names that kind
of pushed the market higher
during the whole uh march kind of v
bottom as well as the coronavirus
and then a rotation more into value in
cyclical names
and then on the relative weakness side a
lot of these leaders that have been
kind of pushing the market higher during
these times were hit drastically hard
with
zoom and peloton definitely being
kind of like the top two names a lot of
people were looking to trade when this
vaccine
news came out these zoom and peloton
have
ran crazy amount from uh
some of their lows back in march and
then roku netflix were also two names
that were very strong in the state home
category in pinterest and then online
retailers
took a pretty big hit too with shopify
amazon
wayfair and etsy and then healthcare
some of the online healthcare
categories like teledoc was a big name
that that caught a massive bid
during uh the pandemic and then some of
these gaming names activation ea take
two
and then just a lot of individual tech
names that were overextended
the week prior a lot of these caught a
huge bid with speculation
of a biden presidency in a republican
senate
that that kind of narrative has shifted
a little bit with these georgia runoff
so
that should definitely be very
interesting in the coming few days
and then gold and silver got pretty much
destroyed
right after this they caught that huge
bit prior breaking that 2000 mark
and then after the vaccine news came out
a lot of these
people kind of took their money out of
the safe havens uh
the uncertainty seem to somewhat have
passed
and you can see this trend continuing
even to today
and then delivery ups and fedex and then
a lot of the broad market momentum names
there’s a few etfs that track uh
momentum names and all these got
hammered pretty hard following the news
if you want to learn
three more real world setups that our
traders use including the simple setup
that we teach
all of our new traders and the setup
that turned one of our traders into a
seven
figure big money earner check out the
free webinar that we’re currently
running just go ahead
and click the link that should be
appearing now at the top
right hand corner of your screen that
will open up the free registration page
in a new window so don’t worry
you won’t lose this video you can also
visit
tradingworkshop.com to register for this
free intensive workshop
you’re going to learn more in a couple
of hours from this trading workshop
than from years of online education
so trade strategy the best way to
capitalize on this would be a basket
trade
and this was a very obvious trade
everyone knew a vaccine
was coming at some point it was more of
just a matter of timing
so to capitalize on this you really
needed to be prepared
having the list of the names that you’re
going to trade on the long side in the
short side following the vaccine news
and then to take that one step farther
you should
pre-map out hotkeys in a basket
so on our platform you can put together
a basket of different names
and then you can just put that right
into a hotkey
but for the long and short hotkeys i
would create a basket
with just the leaders i don’t want too
many names in these baskets
because otherwise it gets a little
overwhelming but the top categories
would be
airlines you can go with the individual
names such as american united
southwest delta or you could just go
right with jets which is an etf
tracking all the major airline players
and then cruise lines i would just do
cruise lines individually with carnival
royal caribbean and then norwegians
optional but i would definitely stick
with
carnival and royal caribbean then hotel
and leisure
win marriott hilton and some of the
other optional plays if you want to be a
little more aggressive
you could go with boeing some of these
financials like jp morgan
and then theme parks such as uh disney
six flags
and some of those other names and then
for the short basket
i just suck with zoom and peloton as uh
pretty much the major weight but if you
wanted to be
more risk on then you could also include
roku netflix
as well as some of the online retailers
such as shopify
etsy and then even gld
i i wasn’t too confident on throwing all
these names in a basket
as they’re very volatile and some of
these are pretty high priced stocks
so it could be pretty easy to get
whipsawed but uh
on such significant news i’m very
confident
adding zoom and peloton into the short
basket but i like what you’re doing here
sam
and you could certainly do this with
other opportunities for instance
you know let’s say you were waiting for
the ev sector
the electric vehicle sector to break out
let’s say you know you’re waiting for
a couple weeks ago tesla to break out
you could create a basket of first tier
second tier third tier
ev stocks and play that from the long
side
or let’s say you thought they got
overbought and you were looking for one
of those days where they were gonna pull
in
then you could build a basket for a
pull-in trade
you make a very interesting point here
which is
hey what’s gonna happen the
first week in january when there’s the
two runoff elections
in georgia for the senate so
if the republicans win one of those
seats
one out of the two of those elections or
two out of the two of those
elections then they will keep control of
the us senate
and there will be lots of policies
that will be dead on arrival that
president-elect biden may wish for if
if two of the seats go for the democrats
there will be policies from
president-elect biden that will be on
the table
there will be democratic priorities
that are back on the table and you could
start to game plan for hey what if that
happens
and build a basket for that or and dr
seabarger was saying this in the morning
meeting
you could start the game plan for hey
what happens if it starts to look like
there’s going to be more vaccines that
come out earlier
and we got it we get out of this even
before
the end of the spring like some people
are anticipating
what’s that going to do the overall
market can i build a basket
if that news hits the tape to be able to
strike
you know or you can just run through
this for lots of other scenarios so
yeah i like the idea of you building a
basket
i like the idea of you being smart about
it we can apply this
we can apply this to lots of other
potential opportunities
yeah exactly so you mentioned that evs
and
shark which is one of the top traders at
our firm
he’s done a great job using baskets to
be involved in
you’re naming like the different tiers
like tier one tier two
tier three evs and then when you already
have the
basket created with the different tiers
that
and names you want to focus on just with
the single click of a button you can
already
be involved and uh the funny thing with
this basket so you could have used this
two mondays ago and then last monday we
also got vaccine news
so you could have one and use the exact
same basket you created
for these stay at home versus uh
reopening place
uh the third vaccine this monday wasn’t
as impactful but you definitely could
have still used
this basket as well so now i’m gonna go
into
a few different charts so this is just
highlighting those
four categories i was talking about for
the long basket
so on the top left corner we have jets
you can see
pre-market opened around 18
closed the day at 22 for such a low
price stock this is a very
very massive move cruise lines this is
just ccl
same story here open 14 closed
near 20. financials
so pretty much it’s the same story all
around financials
open low the day 105 closed
115 which is a very big move for jp
morgan
and then hotels you can see when caught
just a massive bid throughout the day
and then going to the short basket i
highlighted i just
really wanted to focus on zoom and
peloton as these two were
the leaders within stay at home as well
as the most extended and uh
kind of focused names within that
category
you can see zoom got hit very hard 114
point sell-off
similar move in or peloton with a 35
point sell-off
so now i’m going into market timing so
half of this majority of this trade is
being
ready at the right time already having
the basket
in place and so right in this news drops
you you don’t have to think too much you
can just
go right into your pre-mapped out game
plan
and so you can see there is some
opportunity right in this vaccine news
released
at 6 45 you can see
uh the stock pfe the stock
obviously got a huge bid but some of
these uh some of the names within the
basket
lagged a little bit that gave you some
opportunity so you can see this is jets
this is just an example
of uh so this is all the different
airlines you can see
right in that news hit it reacted
somewhat steeply for pre-market but it
only jumped 20 cents after
90 seconds from the news release so i
mean that gives you a minute and a half
of opportunity and then even if you were
5-10 minutes late as long as you had the
baskets ready
you could still get involved and then on
the short side
zoom got hit very hard but it was still
about a minute after the news
broke so you still could have gotten
in with solid prices one two three
minutes
after the actual news hit and then going
into
other kind of market timing
opportunities throughout the day
so on the top left corner we have spy
and you can see following the vaccine
there’s huge gap in the pre-market
but then right on the market open we saw
extreme weakness
a period of consolidation as well as
extreme weakness into the close
and something that was pretty
interesting is we
closed at pretty much the same price
that uh
pre-market opened at pre-vaccine news
and then going into some of the
reopening plays
you can see after uh so i’m on denver
time but this is uh this will be 10 55
like 11 and 11 so pretty much after 11
you can see they all caught a strong bid
in the morning and then while the market
was selling off
into the close all all of these
reopening plays showed relative
strength compared to the market so even
if you weren’t involved
in the pre-market getting uh some of
these entries at the lows
you still could have waited for
opportunities and got got involved
around
11 12 eastern you can see that a lot of
them ran
somewhat strong into the close and had
really strong after hours
compared to the relative’s relative
weakness and spot
this is just on the close so that this
was the main baskets
the main basket for the stay-at-home
names i was following
and you can see there’s a common theme
with all these very steep selling right
on the open
as well as very steep selling on the
close
and then every single one of these names
pretty much closed right at the lows of
the day
which is a very strong sign if you’re
short that gives you pretty good
confidence to hold the position
overnight and uh hold on to this for
a possible multi-day trend trade if you
see
a close like that you can go up flat and
that tees up more likelihood
for a second day play in those sectors
so anytime you have something that’s
really weak
on an intraday basis and it closes near
the low
that tees up a more likely
second day play to follow through and
that’s
if something finished really strong
and finished near the top of its range
we may think that’s more likely to
follow through to the upside for second
day play
if it’s really weak that in this case
the stay at home names
then and it finishes near the low
finishes near the bottom of the range
maybe the bottom fifteen percent maybe
the bottom twenty percent ten percent
depending on your system that can set up
more of a chance for it to follow
through to the downside for second day
play
uh the next day yeah
exactly and what’s interesting is you’re
seeing that selling
in the stay-at-home names across the
sector so it’s not just one of them is
weak
the there’s rotation out of those names
yeah exactly so rotation out of these
names and then if you go to these
reopening
you can see pretty much exactly where
that money’s rotating into
with every single one of these names
essentially closing
at the high high of the day in that top
15 percent
so also kind of like what you mentioned
give you giving you confidence for a
second day
trade second day play as well as holding
uh somewhat of a core position overnight
so it it’s pretty so every single one of
these names are within those different
categories i was talking about with
hotels cruise lines financials
uh energy xle airlines
and then rideshare and you can see all
these
closed at that top end of the range
and then what i also touched on earlier
was that rotation at 11
the midday rotation where everything
was wrote continue to rotate out of
those the previous leaders and back into
these names despite
spy being very weak into the close and
then all these names holding up so
that’s a great check in your favor
seeing the relative strength coming into
all these names
and then something else i had talked
about was kind of that rotation from
growth into value
and then some of these other sectors so
right up here is the xlk which is the
technology etf
and then down here is the vym which is a
value etf so i usually watch these just
to
track and you can see right in that
vaccine news hit
you can see the xlk which is all the
tech stocks
starting to sell off a little bit while
all these value names started to catch a
pretty strong bid then right on the open
that uh the strength continued in value
tech just kind of consolidated for a
little and ended up breaking down being
very weak into the day
well a lot of these value names were
holding up so
another way to attack this if you don’t
want to create a basket with all these
different names
you could go with value like long value
long some of these sectors like long
financials
long energy short technology if you
don’t want to be trading all the
individual names
but you can see throughout the day that
there’s just money
steadily flowing into like energy
financials
and then value well is very clear where
the money was rotating out of
so for overall recap the the most
important part of this trade is
preparation
and then secondly i would say timing for
preparation it just kind of
cancels out all the noises in the trade
trying to find
what’s gapped up the most what’s moving
the most what has the
highest arvol rather you can just come
in with the pre-mapped out plan
of exactly what you want to do and how
you’re going to attack it
and then timing the this vaccine
everyone knew is coming but no one knew
when it was gonna actually be released
so it’s like this is kind of uh like the
trade jake was talking about with tesla
where he was uh at his computer
every day for like 100 days
or however many he said just waiting for
the s
s p inclusion so you could almost treat
this in a similar way
but 6 45 everyone’s already up doing
their pre-market plans so
right when you see that news hit you
need to be ready you need to be there
fast if you want to get the best prices
and then kind of like what we talked
about earlier similar basket trades
are going to be around all the all the
time in the future
you could have even used a basket trade
for the presidential election
like if you’re anticipating biden to win
you could have had solar
and like all these other names as well
as like what you talked about with the
georgia runoff so it’s mainly just being
prepared and then creating these baskets
prior to the event that you’re planning
to happen happens
really good exercise we used to do this
when you guys were interns
where we would talk about game planning
some of the next big trades
and this is something that you guys can
do in small groups and bigger groups
where you say hey what would happen
if xyz happened what would we do
if the
the results of the election look like
they may for some reason get overturned
just as a hypothetical not suggesting
that there’s much of a chance of
happening
what would happen if there was
an attack on iran what would happen to
oil
if we were to see that before trump
leaves office
uh you know what would happen
if it looks like relations between the
us
and china are going to deteriorate or
what would happen if they’re going to
get a lot better
you know before remember
one of the really good trades for
the prior year was the
uh escalation in the trade war between
the us and china
and then us walking that back so
there’d be an escalation that there was
going to be a trade war between the u.s
and china
volatility would explode there were we
could trade the overall market
there were a lot of really good
opportunities and then that would get
walked back
and then there’d be a lot of good
opportunities but it was that game
planning
that we’re going to do this if there’s
going to be an escalation in the trade
war
and you as you’re saying you could have
your basket of products and stocks ready
to go
if that news hit the tape so it’s this
thinking of ideas that could really move
the market
thinking of ideas that could really move
a sector
and building your baskets doing that as
a team
really good to be doing it as a team and
being ready and when you see it
being aggressive hey go ahead and click
our subscribe button so you don’t miss
any of the videos they’re producing for
you and the trading community and please
take the time to add your feedback in
the comments section for what videos
you’d like for us to produce next
and what you found helpful from this
video from all of us at smb
train and trade well
* no relevant positions
