As Bella pointed out, last Friday was difficult. There were so many reversals that it was frustrating to trade any stock. Market stocks overreacted to moves in their corresponding futures and levels were not respected. I lost on so many fade trades in which I would buy a stock that quickly retraced to a support level and continued going lower … Read More
Reversals, Reversals, Reversals
Friday was a very difficult trading day because the market reversed so many times. Into the Close the market reversed four times. I usually get caught in one reversal a week. I got caught in eight yesterday. I would make a bunch of profitable trades and then a stock would reverse. I got caught in the SPY upmove midday from … Read More
What is our Next Market Pattern?
As a trader I am like a WWII decoder. The market talks to us. It just does so in code. And often that code is challenging. But patterns always emerge such that we can understand the market and what she is saying. Yesterday after the announcement that the government would directly infuse cash into the big banks we sold off. … Read More
How Do I Make Money Today?
So today during our AM meeting Steve highlighted MS as his stock of the day. Steve said, “I am going to look for a pullback right on the Open and then look for MS to trade in an uptrend for the day.” Now that is what I call a great call. On Friday Steve mentioned MS as a stock to watch. … Read More
Live to See Another Day
There’s one thing that Bella always says: The trading day doesn’t end until 4PM. That’s especially true with markets like the one we’re currently in.On Friday, I was having a very rough day. What was even more frustrating was that I was underperforming. I could not believe that the type of day I had envisioned months ago was the day … Read More
Fear Establishes Bottoms
One thing that I realized a long time ago was that emotions/psychology are what determine prices of stocks in the short term. The average stock on the NYSE fluctuates 50% in any given year. Does anyone really believe that the fundamentals of each company gyrate to the extent necessary to justify that level of volatility? (maybe in this environment but … Read More
SMB in Trader Monthly
SMB is featured in Trader Monthly this issue. We hope you enjoy the article. There is a really nice full page picture of Steve and me in the hard copy of the magazine (but not online) for those who are interested. If you are trader the magazine is free. Check it out if you get a chance. http://www.traderdaily.com/magazine/article/24582.html
Next Support on the Dow @ 0
I wrote a couple of weeks back about the market putting in a bottom. Oh boy I was only off by about 4000 points in the Dow :). Yes I was very wrong but the beauty of it is that as a trader I have learned that the market has to confirm my bias. The price action wasn’t there so … Read More
