Not all levels are created equal. As traders we must differentiate which levels are most important. Less important levels require more checks for us to take positions. Well fresh news just might be one of those checks. VZ had fresh news today. From Forbes.com: Rumors have been circulating that a new Apple ( AAPL – news– people ) iPhone, equipped to operate through Verizon Communications’ ( VZ – news – people … Read More
All “LEVELS” ARE NOT CREATED EQUAL
During a midday lecture with our new class we discussed the trade in BA above 73.40, “a level”. One of our new traders reasoned, “BA got above the level so I bought.” I stood up, paced to the front of the room, and started teaching. We don’t just buy a stock because it is above a level. Or do we? … Read More
THE NOTHING TRADE
Bella discusses how RIMM behaved after it cleared an important resistance level from the prior day
Make Trades Your Own
After the Close we watched video of HRB (H&R Block). 16 was a huge level on our longer term charts. And HRB found this level. And a few interesting questions were raised during our Tradecast. One was: would you buy before you saw strength on the tape at 16 or would you just buy? There is no right … Read More
Franchise
Suppose your favorite college team recruited a promising forward. Let’s call him Franchise. Suppose you learned Franchise showed up 20 minutes before game time, dressed, did some light stretching, and then headed for a seat on the bench. Perhaps your favorite college team is covered by a terrific beat writer, sharing interesting tidbits via a team blog that reported Franchise … Read More
Sell Before the Number
GMan and the desk was VERY long HAL going into the oil number at 10:30 AM. I would tell you how long but it was probably more long than we should have been. We were in a Trade2Hold and HAL was working. But then most on the desk did something very smart for the intraday trader. They lightened up before … Read More
RMBS Trades Busted
My short chop in RMBS got busted. Dov made the biggest chop on our desk and his profits were eliminated. NASDAQ put out this statement. Tough spot for NASDQ. I am the last person to complain about this stuff. The market is like the Wild West and I have come to accept this. Trade long enough and you will as … Read More
Ten Things Most Exciting for 2010
10. The SEC tax declining by about 35c per thousand shares traded. 2009 was a tough year made much tougher because of this tax being raised 400 percent last year. This will mean a possible extra 17k for some of our traders. 9. Secret Project X. SMB has developed a practice tool we are very proud to unveil to our … Read More