Diversify Re-Defined

Yesterday’s results: No trades triggered. 

Today’s Best S&P Futures Turning Points: Buy 5996.50 stop 5992.75. Short 5993.50 stop 5997.25 if price retraces up from below. 

The World Index: (+100/-100) plummets from +36 to -71 with all major world markets Bearish on rising volatility. 

Catalysts: Fed Speakers today: Waller @ 10:00, Barkin @ 10:15, Kashkari @ 14:00, Harker @ 17:00, Barkin @ 17:30. 

Quick Tip: Diversify Re-Defined

One of our teams day-trades in the futures market. There is plenty of focus on the S&P 500 contract. Yesterday it traded in a relatively narrow range (31.75 points) and closed down 8 points from Friday. The other indexes weren’t very different. Ho hum. 

Our other team swing trades options. You might think that given the lack of movement in the indexes that the options portfolio would be flat too. It wasn’t. In fact, there were specific options that moved substantially. My portfolio of 20 positions was up 12% for the day reaching an all-time high. 

Surprising? Not really. When you properly diversify your equity/option holdings it’s not an uncommon outcome. But that’s only one type of diversification. 

By diversifying your type of trading, in this case day versus swing, you can frequently smooth your overall equity curve. 

And by diversifying your trading strategies, you can do even better. For example, our day trading strategies are technical, and chart driven. Our swing trading strategy uses off-chart catalysts for entries and exits. Curious? Join me on Wednesday November 13 @ 1PM ET for a free training session on how well this approach works. 

Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!