In the fall of 2010 I wrote a post called “The Money Trade“. It outlined the mindset of momo hedge funds and how when they all decide to pile into growth stocks such as CMG, FOSL, CRM, LULU etc. you can quickly identify their fingerprints via after hours and pre-market price action.

A few days ago LNKD reported earnings and the AH/PM price action was indicative of our momo buddies. Here is the video of our pre-market discussion of how LNKD might trade for the day. Followed by a chart of how it traded later that day. SMB Fundamental #1 is Proper Preparation!

Steven Spencer is the co-founder of SMB Capital and SMB Training and has traded professionally for over 15 years. His email is [email protected].

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