The market has been offering a few clues about a possible pause in the rally run we have had over the past 4-5 weeks. The financials have been a leading sector and I wanted to point out a few things. As I discussed in our AM Meeting, there seemed to be a blow off top in the XLF and IYF … Read More
From the Mailbag: Scalping and Stress
I received this email today, which I would like to discuss. Mr. Bellafiore, I enjoy reading your blog. Thanks for sharing your knowledge! I have a question regarding anxiety/stress when reading the tape. I find that this method of trading is much more stressful for me than say, trading patterns off a five-minute chart, primarily because it is faster. How … Read More
Loading Up
One of our better traders stopped into my office today to discuss WFR. He was curious where I started buying into its upmove on in the AM. The conversation shifted to loading up in WFC. We discussed good places to load up in WFC on Thursday. Let’s discuss. Developing traders often assume that the best place to load up on … Read More
The Opening Drive
Here is a setup to help you during earnings season: A stock gaps up or down on earnings and drives strongly in one direction during the first few minutes of the Open. This stock should be In Play for the rest of the day. The large supply/demand imbalance that is indicated during those first few minutes should create a bunch of great … Read More
Weekend Warrior
Your results on Monday will be influenced by the work that you do this weekend. Before we broke for the weekend we met with our desk. And we offered some constructive exercises for their weekend. Be a weekend warrior. Let’s discuss. During the holiday weekend you should perform visualization exercises. What are your mental weaknesses as a trader? Work on … Read More
Amen Corner
Amen Corner often offers the most exciting holes of golf at the Masters. Today 18.25 in WFC was our Amen Corner for WFC. There was an easy short below this level when WFC was in an intraday downtrend. There was an easy long when WFC held above this level when WFC was in an intraday uptrend. Let’s discuss. First let … Read More
Time to Make Some Bank
It’s earnings season. This is our playoffs. Living in these uncertain times the market is volatile. Adding this fact to earnings season offers us an unusual amount of trading opportunity. This is an excellent trading market. And as an intraday trader there is a large check the market is about to write to you if you just act in your … Read More
The Right Approach
New traders at SMB have a very structured environment when they start their trading careers. During their first five weeks every minute of each day is planned. When they begin trading live in week six they are assigned a mentor who will review their work on a daily basis. They begin by trading 100 shares at a time. Their ability … Read More
