WFC has treated me very well lately. On Thursday it sold off hard on the Open and then after some consolidation continued lower. Easy short play. On Friday after a nice gap down it filled the gap and closed at the high with furious buying. Easy long play. This morning I had a decision to make on which stock to … Read More
The Week That Was: May 4 – 8, 2009
What a week for the bulls! Talk about a strong week. Right from the start on Monday morning, the market was bid up. It seems that all news is good news at this point, and above the resistance at 88, it looks like mutual funds have started buying into the move they missed off the lows, after the dismal year … Read More
One That Got Away
RIMM has been my favorite trading stock for the past year or so. I have blogged about trading it a few times already. On Friday it presented a phenomenal trading setup. A setup that I believe works over 70% of the time and offers a risk to reward of greater than 10:1. This setup does not occur that often but … Read More
The Week That Was: April 27 – May 1, 2009
A very interesting week. The SPY continues to linger around just below the 88 level, consolidating near the highs. Tuesday’s action after the Fed announcement increased volatility, although we haven’t really gone anywhere. Wednesday morning, it looked like the bulls were regaining control of the tape, but were not able to close the week above the critical 88 level. One … Read More
All Trades Are Not Created Equal
On our desk newbies are taught to look for setups where they can risk one unit to make five. By constantly looking for these great risk/reward setups they can become consistently profitable. But there is something more important one needs to recognize in order to move to the “next level”. Traders must recognize that unlike people all trades are not … Read More
SMB on CNBC’s Fast Money Tonight – April 30, 2009
Our very own Jeff Tomasulo, senior trader at SMB Capital, will be a guest on CNBC’s Fast Money tonight from 5-6pm. Jeff will discuss which financials to watch with the upcoming bank stress test results. Jeff has been trading professionally for over thirteen years. We hope you catch Jeff on CNBC. Best of luck with your trading! Don’t forget to … Read More
The Advantage of In Play Stocks
I have written extensively since our blog began regarding “In Play” stocks. During earnings season there are many In Play stocks to choose from each day. Traders should choose no more than two or three of these stocks each day to focus on. This is the case because you can make a lot more money trading one or two stocks … Read More
My FOMC Game Plan
Below are the last two FOMC statements: January 28, 2009 March 18, 2009 The most important part of the minutes will be the wording. The rates won’t be cut (we’re already at our lowest rate) and they won’t be raised (we’re in the middle of a deflationary cycle where raising interest rates would kill any hope of a recovery and … Read More