We were pretty pumped about FAZ getting back in play today. However, we were also cautious of what the liquidity, computer algorithms and moves may look like on the open. We cautioned our guys from being overly aggressive on the open with the scalps until they figured out if the old programs seemed to be back in the stock at … Read More
FAZ Party Coming Back
During Dec-Jan our desk traded almost exclusively these two triple leverage ETFs. They provided plenty of opportunity as they would move a lot, had plenty of order flow in them and traded somewhat cleanly. We stopped trading them the moment FAZ went below $8 as the volatility died down considerably and felt like we were trading $AIG below $1. Direxion … Read More
Low Volume
Today was the perfect example of how we need higher volume to confirm a break of support. We see this with stocks and the overall market. We need levels to be broken with significant volume as confirmation. And today we did not see this. SPY over the past two days have violated 88.50, which was a level the market had … Read More
So What Now?
The SPYs finally closed below 88.50. This is the lowest close since the gap day on May 4th. Many people are talking about how the daily chart for the SPYs look like a head and shoulders with a neckline at 88. There will be many obsessively on tv talking about how “technically” we look like we are going to trade … Read More
What We Can Learn From Roddick as Traders
Since this Saturday I have been without internet and cell phone access. I like a remote location. It is calming. But not a spot without modern technology. Thankfully Sunday we had the Wimbledon Final between Andy Roddick and Roger Federer. For those non tennis fans, Roddick was not given a chance to win by most experts, as Federer is arguably … Read More
The Week That Was: June 28 – July 5, 2009
Short week as Americans prepared to celebrate the Fourth of July. I caught some nice sun and relaxed; hope you were all able to do the same. We had some light volume until the non-farm payrolls number on Thursday, trading lower over the course of the rest of the day and closing near the lows. Overall, not exactly how the … Read More
Perspective
One advantage of trading experience is perspective. There are ebbs and flows to the market. There are natural periods where we slump. And there is a learning curve that the new trader must overcome. Let’s discuss. In the book that I am currently writing for Wiley, I start a chapter explaining that there are way too many people walking around … Read More
Making Money During A Quiet Period
Each day the market presents an opportunity to make money. Let me restate. Each day there is money to be extracted from the market. Let me restate. Professional traders who properly prepare each day have a 90% chance of taking money from the market. The 10% of the time they don’t make money is usually due to a mental mistake … Read More