Invisible Demand by Trade Aptitude

Yesterday’s results: Buying 5861.25 offered a 4-point scalp. Shorting 5859.00 offered a 6.75-point scalp. 

Today’s Best S&P Futures Turning Points: Buy 5823.25 stop 5820.00. Short 5908.50 stop 5912.25.

The World Index: (+100/-100) slides from -29 to -36 with most major world markets Bearish on modest volatility. 

Catalysts: Import/Export Prices @ 8:30. Earnings continue (individual stocks can have a big market impact, consider ASML/NVDA yesterday). 

Quick Tip: Invisible Demand

All markets are influenced by the forces of supply and demand. More demand than supply will push the markets higher. This natural law works on every tradable asset. 

But is all demand visible on a price chart? For indexes, currencies, and commodities, I would argue yes. They are mostly institutional markets, and the footprints large traders leave can be found. Our team trades a chart-based Supply/Demand strategy that has a real edge. 

For individual stocks I would argue yes, but not always. While institutions play a major role in individual stock movement the quantity of retail traders has increased since Covid and they absolutely do influence price with their collective demand. Think about the meme stock explosion. 

But there is another, invisible demand for individual stocks that has great edge in predicting price movement: Insider buying by the C-level executives running the business. No one knows better than they do how the business is likely to perform in the future. Small investments by these insiders don’t represent significant demand but large investments certainly do. 

If you want to see the evidence of just how influential this key level of demand can be on stock and option prices, and learn how to trade it, join us on Thursday October 17 @ 1 PM ET for a complimentary training session. Click here to register.

Trade Fearlessly,

Mike Siewruk

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