We haven’t seen too many days where offers were paid like today in the past year. I mean that was just amazing. The buying in GS, the buying in AAPL. The explosiveness of the moves. How hard it was to get hit on the bid. Where did this buying come from? I would say today was strong but that would … Read More
Sunday Thoughts
At the office doing a few things with Steve, GMan, and Charlie. We are gonna watch some film at 3:15 with a few traders. We are putting together some new materials for Advanced Training and reworking one our websites. I am done with most of my part of that work. So now I starting to think about next week. And … Read More
Reviewing Your Work
I was out on the West Coast interviewing some candidates at UC Berkeley last Friday. It sure was nice out there! Mid 70s in the middle of November, really? Oh boy do I miss that awesome weather!. One of the interviewees with a bit of experience in trading his own account asked me a question that I thought was interesting. … Read More
GS: Too Hard?
Most new traders should not be trading GS. GS is a very difficult trading stock. The spread is 30c to 50c. It reverses often intraday. There are programs that make it difficult to hit new lows. Trading with size is near impossible. Only the very best of set ups are profitable. GS is broken. And it has been since it … Read More
A Fundamentally Poor Trade
Never short a stock very close to an important support level. Let me explain. 88 is a very important support level for GS. Tuesday the stock leaked below 88. But it could not hold below 88. Later the stock rallied strongly. A few on our desk shorted GS when 88.30 held the offer. This is a fundamentally poor trade. Let’s … Read More
Make This Trade
Goldman Sachs (GS) is significantly weaker than the market right now. Just a few examples: On October 29th after having rallied strongly for two days it gave back almost all of its gains in one day; as the S&P has consolidated and shown strength the past few days GS has sold off sharply on negative chatter; it dropped four points … Read More
Standing in Front of a Freight Train
I am not sure why but too often traders fade moves like yesterday into the Close. The market bounced over 800 points during the last two hours of trading. I was talking with an experienced trader after the Close and came up with a theory. Traders tend to miss the beginning of bounces. The market has been weak. The market … Read More
Last 15 Minutes
Large movements generally start more than 15 minutes before the Close. The last four trading days we have seen very explosive moves in the last 15 minutes of the trading day. Today we tanked right before the Close. The last two trading days we have seen significant downmoves. The two trading before that we saw significant upmoves. Today in the … Read More