Mike,
Greatly enjoyed your initial Playbook Series Webinar. I have a few questions:
1) What do you mean by a “trend-trend” trade?
2) You mentioned that you focus on trading “in play” stocks. Do you mean stocks with a known catalyst (e.g. earnings, guidance, takeovers, etc.) or are you referring to stocks appearing on the SMB Radar?
3) On a side note, what is your average monthly volume in shares traded?
I have more comments about the first Webinar that I will save for another email.
Scot
Prop Trader
Miami, FL
@mikebellafiore
A Trend Trend Trade is a set up that is trending in the same direction on the long term AND short term charts. An example of a Trend Trend Trade was in RIG today.
RIG is trending on our longer term 3 month chart.
RIG was trending intraday. Stocks do no trend until after the Open. It’s fair to say that after 10:15 AMish today that RIG was in an intraday uptrend. The trade is to get long into the consolidation right after the Open and hold RIG until there is a Reason2Sell. More on that during future PlayBook Webinars.
Now to answer your second question. Stocks In Play have a catalyst, generally news. A cheat sheet to find Stocks In Play before the open is to find anything +/- 3 percent on increased volume before the open. In my next book The PlayBook I outline the Super Stocks In Play to teach this principle. We use tools to ensure we find these stocks- The SMB Scanner and The SMB Radar.
I hope that helps. Look forward to seeing you at our next Webinar for our new Webinar series The PlayBook.
Mike Bellafiore
