Well what looked like was going to be a week for the bears ended up being a pretty good week for he bulls. Let’s keep an eye on that 88 level in the SPY, as it looks like it’s going to come into play again this upcoming week. The dollar index looks like it is breaking down from a bear … Read More
Second Day Play
I like earnings season not only for the volatility that comes from the day a company reports. I also like it for the information that I am able to gain from trading and watching the price action of a particular stock. This information gives me an edge the next day, which gives me a higher probability that my next trade will … Read More
SMB on CNBC’s Fast Money Tonight
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 Second Day Plays, sharing how to successfully trade second day earnings plays. Jeff has been trading professionally for over thirteen years. We hope you catch Jeff on CNBC. Please feel free to ask him follow up … Read More
Why do you trade?
Why do you trade? I ask this question to myself constantly. There are many reasons. I think you have to ask yourself this before you set goals, while you are setting new ones and while you are trying to accomplish previously set goals. Let me tell you how I set my goals. I look at my trading career as a … Read More
28 Days Later
Today I saw strong evidence that the recent market rally has come to an end. Today was the 28th trading day since the Reversal Day which established the five week run we have seen in the market. I like to jokingly refer to the rally as the “Obama rally” as the constant bashing of Obama on CNBC seemed to coincide … Read More
Some Interesting Links From the Past Week
From the people who brought you FAZ and FAS, Direxion, has launched triple T-bond ETF’s. It’s currently very thinly traded, but so were FAZ/FAS when they first started. I think these will become increasing more liquid, and will provide equity traders with an opportunity to trade bonds for volatility swings on the release of economic numbers and Fed meetings. Definitely … 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
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