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Justin V.

3 Reasons We Have Not Seen A Market Top & A Million Reasons It Will Burst

Buy? Sell?

1. There has yet to be that strong push forward. On the desk, everyone is waiting for that move to signal the top. When markets come  to an end there is usually the egregious move. But day in and day out we trade in this tight range slowly grinding forward.

2. The earnings front:  It seems that there is nothing but positive earnings. Stock after stock are topping analyst estimates.

3. QE2 ends in June. I believe that as long as the “Fed” can spend, the market moves higher.

Now, that does not mean the economy is improving overall. We have an unemployment rate greater than 9%, which is more like 15%. There is still a housing crisis as foreclosures are still eminent. The “Fed” is testing the banks balance sheets, to see if they could sustain a double dip recession. Does this strike anyone else as a bit peculiar? We also have fears of inflation and rising commodity prices. At this rate, a pair of socks will cost $100. And we can not forget all this shit that is going on in the Middle East.

-Justin Valle

A topsy turvy day

Today was a bit unusual. We entered orders counter to our orginal plan. We went long on our shorts and shorts on our longs. By noon Mosk was fed up and feeling beside himself. I know he blogged about this. He gave us a speech before we broke for lunch. When you are having a bad day, simply just walk away. Before walking away, get out of your positions, by going flat or taking some share size off. This limits the amount of pain you will take. The next step is to get your strategy in order and know your risk tolerance. Do not try to make it  back on one trade! Make sure you stay small and feel good about your trade. Walk away from the day feeling okay.

After lunch we did not trade until around 3:00pm entering orders for overnight. Going into close we owned CLF. Needless to say we ended up positive.

A traders biggest down day usually comes after there biggest up days.

-Justin Valle

Where are we headed?

There is no direction in this market. Tod the spooz traded in a tight range. Both our longs and shorts worked for us. As we take a look at the bigger picture and evaluate the broader market, we have no evidence of a big move. There are plenty of questions that still need answers such as; where are rates headed, what will happen in Egypt, will there be anymore quantitative easing. With these unanswered questions ahead of us, one would speculate we will eventually pullback. For the time being we still remain to grind higher. But when the pullback comes, it will come fast and hard. Take a look at our CEO Jeremy Frommer’s blog; 10 Reasons The Stock Market is Delusional, for further conviction of a pullback.

Hedge fund live vs. Hedge Funds

I want to know where my money is invested

 Put us up against any other hedge fund and the one guarantee is our transparency. Four times a year, US securities regulators require fund managers to disclose their stock holdings. At hedge fund live, at any given time, your are able to view any of the traders portfolios, as well as watch the trading desk. I have mentioned this in a previous blog, that hedge fund live is truly innovative.

Mid day recap for Day Trade Well P&L is positive!

Control your emotions

Emotion can get the best of  you when trading. It can cause you to exit a position to early, either by; not allowing you to let the losers play out or cutting your winners to soon. If  you trade with emotion you will not be a successful trader. You must allow yourself to stay discplined and controlled and not base decision off your p&l. As I witnessed today,

Control your emotions

Maintain your emotions

 remaining calm and sticking to your strategy allows you to be successful.

Summary of the first week

Ferrari F430 How Sweet!


I have always wondered what it is like to being a trader. As my first week comes to an end, I don’t own a Ferrari or a huge mansion. Is that not what Wall Street is? My first week has given me great exposure to the business and what a difficult one it is. There is a lot of pain that comes along with this job. You have to be able to stomach huge losses, but also not be greedy when things swing in your favor. I also learned that being prepared helps tremendously. The energy on the desk really gets you going and excited to be here.

I also realized that although I am a trader, there are other tasks that need to be done to help the business. The concept behind this site is truly remarkable.  Some may say I am drinking the “kool aid”, but in all honestly, think about it- a fully transparent hedge fund, really? One of the biggest complaints about hedge funds is, how do I know what they are doing?   Is this another Madoff scheme?  What are they investing in?  Well folks, here you have it! On top of that, the content that we can provide to viewers can help investors be successful traders from home.

There is still a lot for me to learn, but I am excited and can’t wait to share my success with you and hear about yours.

Have a  Great Weekend!

-Justin Valle



Overnight we held 1000 shares of YUM(owns KFC Pizza Hut and Taco Bell). During the morning trading we added into our levels down to about 49.14. Throughout the rest of the day the trade continued to work for us on a slow grind up. It was great to see how a trade like this plays out. What I learned is sizing into a positon is important ie: if we would have purchased all the shares at once we would not be able to by at lower levels, if we sold it all too early we would not have profited all the way up. As each day goes by the more excited I am to get on the keys and enter my first trade.

DTW Lunchtime Recap

Going into lunch we traded 14 names with success having a positive p&l at lunch. We are holding on to 4,000 YUM, 1,00 YHOO, 200 DELL, and short 100 DOV.  Going back to my  previous post propering planning once again equals successful trading.

Pre-Market Planning = Successful trading

Today, prior to market open, we went through the stocks that Mark trades. We matched the moving averages to the S4 S3 & R4 R3 Camarilla Pivots. We also discussed getting flat around noon, due to the mid-day reversal which he identified as an unsuccessful time for him to trade.  Following these plans we were able to identify stocks that were good shorts or longs as well as; book some nice profit before 12:30 came around.  Through out the course of the day we kept a close eye on the stock we identified levels and placed trades accordingly. Today turned out to be a successful P&L day for Day Trade Well. Due to proper planning, staying disciplined and executing the plan.

-Justin Valle

-Justin Valle

First Day, First Blog

I have always taken an interest to the markets, but never followed it that closely. As a trader that is about to change. Over the next several weeks there will be a lot to learn; from moving averages, too executing trades, and defining pivot levels makes me feel a little overwhelmed. With money as my motivation I am confident I will succeed.

Blogging, on the other hand will take some getting used to. I come from retail banking where creativity is tossed aside. All in all I am excited for the opportunity; and look forward to blogging about both my success and failures. Hopefully my failures stay to a minimum, but serve as a teaching tool to myself and the members.

-Justin Valle