All posts by T3 Trader
Sami Abusaad Interview: Getting to Know a Top Trader
To help you get to know T3 Live’s growing bench of trading talent, we’ve launched a series called “Meet the Traders” so you can get an inside look at how our team operates. Today, we are proud to introduce you to Sami Abusaad, T3 Live’s Director of Education, and creator of our Strategic Swing Trader and Strategic Day Trader programs. 1) How did you first get involved with the markets? In 2005, I had $20,000 saved from an accounting job and I didn’t know what to do with it. I then found out that the second richest man in the world made all of his money from investing. That man was Warren Buffett, and I immediately became fascinated by the markets. I also read about a 21 year old kid from New York who made $1 million in less than a year. That provided a sense of hope to me. I thought “if he can do it, I can do it too!” I opened a brokerage account and funded it with $16,000. In six months, I made about $10,000. In a year, I was at $50,000. I did this by playing swing longs in a bullish market. My brother was as amazed by my results as I was, and he gave me the following words of wisdom: “If you can make that kind of money through “Buy and Hold”, imagine how much you could make trading actively!” He was referring to stocks on the“Highest Gainers/Losers” list for the day. I listened to his advice. I started trading actively every morning. Within a few months, I lost all my profits… and another $15,000. That’s when I realized that I didn’t know quite as much as I thought I did. A few months later, while scouring the Internet for trading resources, I came across Zacks.com, a financial website similar to Yahoo! Finance. Zacks.com was running a one-year trading challenge and the winner of that contest would receive a $100,000 job offer. I participated in that contest, and guess what? No, I didn’t win. But I did receive something better than winning the challenge — I became friends with the winner: he had turned $100,000 into $2 million in less than a year. He told me he had been a full time professional trader for 15 years – and that he learned it all from a small company called Pristine. He encouraged me to read their book Tools and Tactics for the Master Day Trader. Not only did I read it immediately, I registered for all of the free workshops available at the time and then went on to take Trading the Pristine Method (TPM) and Advanced Technical Strategies (ATS), which was known as TPM II. The rest, as they say, is history. (Editor’s Note: T3 Live acquired Pristine in 2014) 2) So what are you doing now? I am an active day and swing trader, averaging seven trades per day. I focus on stocks in my trading, but my trading style can be applied to all markets, including futures, commodities, options, forex, and more I am also an educator for T3 Live and serve as Lead Moderator for the T3 Live Strategic Day Trader room. As much as I enjoy trading, I think teaching is my calling. I run several education programs, including our Earnings Engine course. And in 2017, we launched a new swing trade coaching program called Strategic Swing Trader. 3) Do you use a specific trading methodology? Yes, I trade primarily 3 proprietary strategies in day trading. Gaps: I focus on professional gaps that break long-term trends and ignite new trends. Climactics: Stocks that experience a parabolic price acceleration to the point of exhaustion. 15-Minute Chart Plays: These are afternoon plays that trigger off the rising or declining 20 ma on the 15 min chart. It could be a pullback-type entry or a breakout/breakdown. In Strategic Swing Trader, I primarily focus on catching stocks during their bottoming/topping period, or later while they are transitioning. I use various patterns and advanced tactics to enter into those plays, and I try to catch them early on. Trading earnings is also very important to me. 4) How do you unwind from the ups and downs of trading? I like to take evening walks and play sports, including basketball and soccer. 5) Do you believe in setting stop losses? Yes, absolutely. But often, traders wrongly think of a stop as an exact point on a chart. I use an area, rather than an exact number. 6) Are you concerned about high-frequency and algorithmic trading? Yes I am, because they make the market more efficient. A more efficient market means fewer opportunities. However, smart traders can still find plenty of opportunities to make money each day if they put the work in. 7) What is 1 thing traders can do today to start getting better results? Trade in samples and evaluate each sample dispassionately like a scientist. This way, you can figure out what you’re doing right and what you’re doing wrong. Don’t let emotions or pride get in the way of improving. 8) What would you be doing if you weren’t a trader? I would dedicate more time to the outdoors. But in the meantime, I’m having a lot of fun teaching and trading. P.S. Looking for a more effective and consistent approach to trading? Check out Strategic Swing Trader and Strategic Day Trader.
Continue Reading -->T3’s Take 3: Stocks Hit the Snooze Button Ahead of a Very Big Wednesday
Prop Trading May Not Be Right For You… But it has incredible financial benefits for many traders. Click here to learn more… 1) Holding Pattern Ahead of a Very Big Wednesday Last week, we saw a rebound in volatility as traders put the summer snoozefest behind them. But stocks quieted back down today ahead of Wednesday’s big Federal Reserve and Bank of Japan meetings. The S&P 500 was flat 2139.12. The Nasdaq underperformed due to weakness in select large-cap tech names like Apple (AAPL) and Amazon.com (AMZN). The Russell 2000 was an outlier to the upside with a 0.6% gain, and we also saw nice gains in utilities, real estates, financials, and transports. US Treasuries, retailers, and pharmaceutical names led the decliners’ column. 2) Watch the SPX 2147-2148 Pivot This morning, T3’s Jeff Cooper highlighted key levels to watch going forward: 2147/2148 is a key level on the SPX. A) It was the August low of the long summer Slim Jim. Consequently it is the Monthly Swing Pivot—where the monthlies tuned down In September on trade below the August low. B) It ties to a 50% retrace from the 2193 all-time high to the 9/12 2118 low. Interestingly, on the Square of 9 Time & Price Calculator, 2148 also points to/aligns with September 21 and the important Gann Autumnal Equinox. Of course, this is also the date of the big Fed announcement on interest rates. You can’t make this stuff up! 3) Be Very, Very Careful Shorting Biotech This morning, Sarepta Therapeutics (SRPT) received FDA approval for Eteplirsen, a treatment for Duchenne muscular dystrophy. The stock hit a circuit breaker, reopened, and skyrocketed to finish up 74% on the day. Eteplirsen is considered to be a controversial drug, so many traders – especially shorts – were shocked by the news. Over 33% of the float was sold short, which means some folks were put out of business. So please folks, be very, very careful shorting biotech. P.S. Don’t forget to sign up for our next prop trading event! Tuesday’s Trading Calendar US Economics (Time Zone: EDT) 08:30 Housing Starts (Aug): exp. 1190k, prior 1211k 08:30 Housing Starts MoM (Aug): exp. -1.70%, prior 2.10% 08:30 Building Permits (Aug): exp. 1165k, prior 1152k 08:30 Building Permits MoM (Aug): exp. 1.80%, prior -0.10% Global Economics 12:50 CAD BOC Gov Poloz Speaks Tentative JPY Monetary Policy Statement Earnings Before Open: Carnival Corp (CCL) Lennar Corp (LEN) After Close: Adobe Systems (ADBE) Copart (CPRT) FedEx Corp (FDX) KB Home (KBH)
Continue Reading -->T3’s Take 3: Stocks Get Stuck in First Gear
Learn Dave Green’s Trading Secrets Click here to start speculating the SMART way… 1) Stuck in First Gear Stocks were stuck in first gear today following a downturn in Europe overnight. European banks fell hard after Deutsche Bank (DB) said the Department of Justice is seeking $14 billion to settle a legal case related to mortgage-backed securities. Bloomberg Intelligence had estimated the settlement would be in the range of $4 – $8 billion. The S&P 500 fell as low as 2131.20, but recovered some of its losses into the close and finished at 2139.09, down -0.4%. The Nasdaq outperformed due to strength in large-cap biotech names, notably Celgene (CELG), which reported positive study data. Crude oil declined again, sending energy shares down, with notable weakness in oil service. This morning, Intel (INTC) raised its third-quarter revenue and gross margin guidance on rebounding demand for PC’s. Intel shares rose 3.0%, but failed to significantly lift the broader semiconductor universe. 2) CPI Surprise! US economic data has been deteriorating since the July 29 Q2 GDP report, which had some traders losing faith in the Fed’s ability to hike rates this year. But the hawks got a small boost today with the better-than-expected August Consumer Price Index report, the last major economic data release before Tuesday’s Federal Reserve rate decision. The CPI rose 1.1% year-over-year, beating the 1.0% consensus, while the core CPI, which excludes volatile food and energy prices, rose 2.3%. The report had traders upping their rate hike bets, and Fed funds futures now imply a 55% chance of a December rate hike, up from 50% earlier today. 3) Traders Sell the Apple News Apple’s (AAPL) iPhone 7 went on sale today after a week of positive news, though they were not easy to find. In fact, demand is so strong that some iPhone models will not be delivered until November. Earlier this week, T-Mobile (TMUS) and Sprint (S) both said that iPhone pre-orders grew substantially from last year. iPhone 7 reviews have been very positive, and meanwhile, the Samsung Galaxy Note 7 – a key iPhone 7 competitor — has been recalled due to exploding batteries. That certainly tipped the iPhone vs. Galaxy debate in Apple’s favor. However, Apple shares saw a “sell the news” reaction to the actual release today as traders locked in profits after 4 days of strong gains. Monday’s Trading Calendar US Economics (Time Zone: EDT) 10:00 NAHB Housing Market Index (Sep): exp. 60 , prior 60 Global Economics 21:30 AUD Monetary Policy Meeting Minutes Earnings Before Open: None of Significance After Close: None of Significance
Continue Reading -->Scott Redler’s Morning Call Express: Crossroads!
In today’s Morning Call Express, Scott Redler talks about the action in the SPX and what to look for going into the end of the week. He also talks about high beta tech names as well as key sectors.
Continue Reading -->T3’s Take: Oil and Biotech Scream but Fail to Start a Party
1) Oil Blasts Into Orbit Today, we saw the biggest decline in US crude inventories since January 1999. The Energy Information Administration said US crude stocks fell -14.5 million barrels last week. Traders were expecting a 905K increase, so needless to say, the market was taken by surprise. WTI crude rose 4.2% to $47.41, and in turn, energy stocks led the market. Oil service names were especially strong. However, we still see a lot of conflicting headlines regarding possible changes in OPEC policy, so stay on your toes. 2) Biotech Rips on More Deal Hopes Yesterday, biotech caught a bid into the close after Reuters reported that GW Pharmaceuticals (GWPH) hired advisers after being approached for a takeover. Today, Gilead (GILD) added to the positivity by saying at an investor conference that it “feels an urgency” to do deals, noting an interest in cancer drugs. Traders immediately looked at cancer treatment specialists Tesaro (TSRO) and Clovis Oncology (CLVS) as potential targets, and both stocks rose sharply today. The Nasdaq Biotech Index ETF (IBB) rose 0.7% to $288.03, vastly outperforming the major indices. 3) Stocks Grind Gears Even with crude oil and biotechnology rocking hard, the S&P 500 couldn’t drive any upside, and it declined -0.2% to 2181. That felt a bit odd, since typically, stocks perform well when oil and biotech rally. Apple (AAPL) sank -2.6% on a downgrade from Wells Fargo, which weighed on the Nasdaq. Gold took a hit today as the dollar rose sharply against the yen, which sent gold miners (GDX) sharply lower. We also saw weakness in US Treasuries, retailers, and real estate names. Friday’s Economic Calendar US Economics (Time Zone: EDT) 08:15 Fed’s Rosengren to Deliver Economic Forecast in Boston 09:30 Fed’s Kaplan Speaks in Austin, Texas 10:00 Wholesale Inventories MoM (Jul F): exp. 0.10%, prior 0.00% 10:00 Wholesale Trade Sales MoM (Jul): exp. 0.20%, prior 1.90% 13:00 Baker Hughes U.S. Rig Count (9/9): prior 497 13:00 Baker Hughes U.S. Rotary Gas Rigs (9/9): prior 88 13:00 Baker Hughes U.S. Rotary Oil Rigs (9/9): prior 407 Global Economics 04:30 GBP Goods Trade Balance 08:30 CAD Unemployment Rate Earnings Before Open: Hovnanian Enterprises (HOV) Kroger (KR) Mattress Firm Holding (MFRM) After Close: None of Significance
Continue Reading -->Morning Call Express: Beta Time!
In today’s Morning Call Express, Scott Redler looks at the SPX and how yesterday’s action plays into his overall plan. With the AAPL event today, he also looks at the chart of AAPL and provides some techincal levels to keep an eye on for trading. He also looks at some high beta tech names as well that remain on his radar.
Continue Reading -->Get to Know Expert Trader Jeff Cooper
In this classic interview with expert trader Jeff Cooper, you’ll get an inside look at: How Jeff started his trading career Some of the biggest lessons he learned along the way Jeff’s unique technical analysis methodology. Want to learn about how you can crush the market with Jeff Cooper? Click here.
Continue Reading -->Rob Smith’s Daily Recap Video: Another Awesome Fed Day
In today’s Daily Recap video, T3’s Rob Smith breaks down the action on a very exciting Fed day.
Continue Reading -->The Morning Hammer: We Won’t Get Fooled Again?
Get a Quant Edge in Today’s Markets Today after the close, Rob Smith is hosting a FREE webinar on his unique Quant Edge Trading Strategy. Read all about it ********************************************************************* The bears had a great day yesterday. SPX only fell -0.5%, but with Hillary Clinton’s help, they sent biotech from first to worst in a matter of hours, and some key momo stocks like Twilio (TWLO) and Acacia (ACIA) took beatings. Oil also fell on a very bearish inventory report and the VIX got a little pop. Overnight, German business sentiment missed expectations, while Spain reported above-consensus GDP. And Bloomberg is reporting that Chinese authorities may act to cool off Shanghai’s surging property market, including restrictions on mortgages and development loans. This morning, we’re seeing some minor downside follow-through with SPX futures down 5 handles and crude oil off 30 cents. We’ve got a big chunk of economic data coming today with jobless claims, durable goods, Markit PMI, and the Kansas City Fed on tap. However, the big story is still FOMC Chair Janet Yellen’s speech in Jackson Hole tomorrow. Traders have been ratcheting up rate hike expectations, and Fed Funds futures now imply a 54% chance of a December rate hike, up from 47% a couple weeks ago. That’s been putting pressure on gold and US Treasuries. I won’t hazard a guess as to what she’ll say because trying to game the Fed has been extremely hard this year. Everyone was geared up for a big hawk move in June and Yellen came out dovish. In fact, now that I think about it, there are two major parallels with June. We’re heading into a Fed event where everyone is expecting a big hawkish twist. Funny, just as I wrote this, Kansas City Fed President Esther George (FOMC voting member) came out swinging the hawk hammer, saying the “time is right” for a rate hike and that gains in inflation give the Fed room to remove some accomodation. And we’re heading into an OPEC event where a lot of traders expect a production freeze or cut. In June, the Fed and OPEC disappointed the masses. Are we about to get fooled again? I’m not going to make any predictions since I’m not rolling the dice on Yellen’s speech. Just keep in mind that Mr. Market’s primary mission is to fool as many traders as possible at all times.
Continue Reading -->Morning Call Express: Don’t Fall Asleep At The Wheel
Don’t Fear Forex… Attend my buddy Kurt Capra free webinar tomorrow and learn why so many stock and options traders are embracing the lucrative world of forex. In today’s Morning Call Express, Soctt Redler talks about the current trend of the SPX and the key levels to be watching for technical support. He also looks at various sectors like the Nasdaq Biotech. (IBB) as well as key, high beta tech names like AMZN, FB, and others. Scott also notes that banks and gold could be key sectors to watch going into this week.
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