Parabolic Moves by Trade Aptitude

Yesterday’s results: No trades triggered. The suggestions stay on the chart. 

Today’s Best S&P Futures Turning Points: Buy 5936.25 stop 5931.25. Short 5932.00 stop 5937.00 if price retraces back from below. 

The World Index: (+100/-100) plummets from +50 to -50 with all major world markets, except Tokyo, Bearish. 

Catalysts: UofM Consumer Sentiment & Inflation Expectations @ 10:00. Fed’s Bowman @ 11:00, Musalem @ 14:30. 

Quick Tip: Parabolic Moves 

Price generally moves in impulses and corrections in both directions. Three steps forward, one back. The trend continues until price moves sideways in a range. Eventually a new trend starts. Look at plenty of charts and notice this repetitive pattern. 

Sometimes the trend portion of the pattern doesn’t move in impulses and corrections. It’s a smooth series of vertical candles, a parabolic move. Look at the S&P daily chart right now, it’s up 250 points, 4.5% in three days. 

Seemingly “overbought” conditions can persist so fighting this momentum is unlikely to be a high-probability trade. But this is a fabulous “tell” that price may move in the opposite direction just as fast. We just don’t know when. Sometimes you’ll see reversals without a range. Other times you’ll find a range form before the reversal.

Get in the habit of marking these parabolic moves on your charts. It will prepare you for a potentially sizable winner when the reversal occurs, or the new range breaks out.

Our trading teams focus on multiple strategies for day trading futures and high-probability candidates for swing trading options. Maybe you'll fit right in. You can try either or both risk-free.

Trade Fearlessly,

Mike Siewruk

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