The first hit is always on the house.
Joined Aug 2, 2009
1,847 Blog Posts


Despite the weight of market sell orders from all the expert “Johnny-Come-Lately’s” my stake in $TWNK has stood up to the pressures of lower for a moment stock pricing today.

This is still a great turn around story, and the momentum behind a Deep Fried Twinkie is nothing short of disgusting.

As a result, there are numerous reasons one should consider a splash of $TWNK for retirement. Mainly, the creativity and humor behind the ticker symbol.

On the day, I picked up some $CMCM, added back into my $CTRP calls (took half off yesterday) and shorted Gold. Gold could be something we discuss today I suppose. Raise your hand if you care to listen.

I have interest in drillers here ($ATW, $NE) like $YY and will look at picking up $ACIA tomorrow if it remains in the $57-60 price range post earnings tonight.


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You’ve all heard me use this term before, probably heard others out there use it as well. I don’t know the origin of this term coming from the mouth’s of others, but I figured I’d drop a quick example of how I use this term and how it relates to trading so you can avoid getting “Daniel Larusso’d.”

Let’s use this classic clip, from which this term was derived:

Let’s modify the cast in this explanation…

John Krese– The Stock Market/Notion of Pain applied to Trading

Johnny Lawrence– Professional Trader/Market Predator

Johnny Lawrence’s Leg– A stray order to take our a prior low in price

Daniel Larusso- You/Unsuspecting retail trader

Daniel Larusso’s Leg– Your stop order

Let’s recreate the scene in a chart of Las Vegas Sands $LVS.

If you zoom into recent price action, $LVS came down and found support a couple weeks ago, where I took on a position.

It got a nice little bump, but has since rolled over coming in to test support. In terms of strategy, if you are long from this $52 area, where is your stop? Easy! It’s right under the lows at $51.50 (Daniel Larusso’s leg).

We all know this is an epic spot to engage this stock. Knowing this, what’s the easiest way to accumulate more shares here (In my John Krese voice)? I could throw out a downgrade, or I could simply drive the stock lower to run all open stop orders. This helps me increase my position at the expense of Average Joe Retail aka getting “Daniel Larusso’d.”

I send orders to drive $LVS downward (aka Johnny Lawrence), sweep the leg (run stops) and accumulate all the new supply created by this move. This is why a support break turns into a responsive buyer. All at the expense of some poor bastards leg.

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Let’s do a run of “Ask OA.”

Got a question? Post it. Stocks, Market, Life – you name it. I’ll leave this open til the close.

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My son started a Stock Market challenge today at his Middle School. Last night we bonded over discussions about “finding vulnerable short sellers in order to insert their balls into a vise” as well as “finding out what all the idiots around you are doing, then betting against them” and also my preference for “Chinese Burritos” when picking out sound companies to invest in.

He told me that his teacher was a self proclaimed master at financial markets. His rule sheet clearly illustrated this fact. Here’s his teacher’s tips to trade:

Trade What You Know – Since most know very little, this is a terrible starting point. He’d be knee deep in Nike, Sony and Doritos.

Tools to Live By: Apply a fast stochastic to your stock chart and look to buy under 20 and sell above 80. – Sounds legit.

He stated many times to look for high beta as well. This criteria has to be set to a value of 2 or greater.

There were a few other suggestions, but I crumpled up the paper and told him that we ought to “make our own rules and try to beat up your teacher.”

He gets a 500K portfolio, and a one month deadline.

What I want to know is…How would you position your kids portfolio?

I started him with a pool of 10 stocks – but five essentials to start on today. These five stocks inculde: $SHLD, $TWTR, $DEPO, $CMCM, $MEET. My five reserves were $ADXS, $WTW, $LL, $PI and $TAHO.


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