Netflix is the undisputed heavyweight champion of momentum stocks. Many have the false impression this makes it a great stock to trade on a daily basis. Oh contraire! For years its intra-day behavior has been quite erratic. But occasionally it sets up quite well. And when it does you should pay attention. Tomorrow, NFLX will begin trading split adjusted 7:1. … Read More
Cool Technology With Some Great Ideas
In the past few years SMB has built some remarkable trading tools. We led the pack in moving to HTML5 years before others (can use on smartphones and tablets). But beyond the cool technology in Scanner, Radar, and Real Time it is the actual idea flow that comes from very experienced traders. Traders who have spent years learning how to … Read More
Long BABA Again
BABA reported solid earnings in early May causing it to gap above 85. On Friday I got long at 85.20 with a stop below 84.50. If it can close above 87.50 next week I would be willing to hold it for a longer term move back into the 90s. Sellers are in control right now so I could get stopped … Read More
Why Netflix Was A Short Today
Netflix has been on quite a tear since they reported strong earnings in April trading higher by more than $200. But for short term traders who each day look to trade lower time frame trends NFLX offered a good short setup Friday morning. These are some factors I considered prior to sharing the setup in our morning meeting. Netflix had a huge … Read More
Making Predictions as a Short Term Trader
Wall St. economists and big bank analysts often make inaccurate forecasts on stock prices. Short term traders predict price action more accurately because: Short term traders look at catalysts and current price action We understand how market participants will act to different types of catalyst and trade accordingly Predictions are for a shorter time frame We constantly reevaluate our trading thesis I hope this … Read More
A Low Risk Entry For A Long Term Breakout–FEYE
Since the beginning of the year FEYE had been consolidating between 38 and the mid 40s. It has had a lot of positive news flow this year but had many failed breakout between 45-46. I made a conscious decision not to get long in the mid 40s until it cleared all resistance for the year on heavy volume. On May 28th … Read More
Mindset Hacks: Adopt the Mindset of a Champion
This is the final blog post in a 3 part series from Bruce Bower on Peak Performance. Part 1 was on consistency and Part 2 was on making better decisions. When we did a survey of the top three topics that people wanted covered, I was surprised by the third place winner: “Mindset Hacks: Adopt the Mindset of a Champion”’. On the other … Read More
What Does “Losers Average Losers” Mean?
Many years ago Paul Tudor Jones was photographed in front of a photo that read “Losers Average Losers”. What the heck does that mean and why is it so important? As traders our #1 job is managing risk. If you add to losing positions it may become extremely difficult to manage your risk. For example, If you put on a position … Read More