Action in the SPY this week was pretty tight. The lowest we traded was 93, and never really traded above 96, failing at the same spot we failed last Friday in the pre-market. The range has really tightened over the last 2 weeks. We were not able to close above 95 on the SPY until Friday, when we climbed above … Read More
Taking A Look Under The Hood
In the world of day trading we like to say that earnings season is our “playoffs”. It only occurs four times per year and is a time where trading opportunities abound. The most difficult thing during earnings season for traders is remaining focused on their best ideas and not attempting to bite off more than they can chew. If a … Read More
Algorithmic Programs That Will Be Eliminated
Yesterday I wrote about secondary plays, and a program we call Buying the New Low. When a stock makes a new intraday low algorithmic programs buy this new low because they know that short term traders will get short. These programs are betting that only light volume will enter the market when a stock makes a new low. They buy … Read More
Seconday Price Pattern: AMP, JLL
We spotted a trading pattern in AMP and JLL this week. Both traded below important support, their secondary price offering, and had a decent downmove below. Let’s discuss how to trade a Secondary Price, and the pattern we discovered. Trading a secondary is a simple trade. Above the secondary price we are long. Below the secondary price we flip our … Read More
From the Mailbag- RIMM
I received this question last night about a recent Tweet where we suggested an excellent entry for RIMM. Let’s read the question and then discuss. Dear Mike, I have been following SMB via Twitter and your blogs for some time now and have got a lot out of the posts. So thank you and all at SMB for that. I … Read More
A Technical Lesson from JToma
News of lower than expected jobless claims resulted in a quick pre-market spike then sell-off in SPY today. However, on the open it rallied and proceeded to break through the 95.50 resistance level (peaking at 96.11) in the early afternoon. As the end of the trading session neared, sentiment reversed and SPY sold off hard into the close, finishing at … Read More
Battle on the Open: CRDN
In my quest to help the intraday trader exploit the open better I offer another great setup on the open. Again for those who struggle on the open it is not that this is a difficult time period to master. It is that you are not in the right set ups. I call this one The Battle on the Open. … Read More
JToma talks Banks, SPY, and GS on CNBC’s Fast Money Halftime Report
News today was focused the repayment of TARP funds by 10 of the big banks. This news has been circulating in the market for quite some time and I believe that it was priced into the financials. The TARP trade for most financials is finished! In the broader market it seems that we are continuing to trade in a range. … Read More
