Second Chances by Trade Aptitude

Yesterday’s results: : Shorting 6032.75 caught the high of the session and ran for 25.50 points before closing the day +19.00. 

Today’s Best S&P Futures Turning Points: Buy 6037.50 stop 6034.75 if price retraces down from above. No short candidate today. 

The World Index: (+100/-100) dips from zero to -7 with the major world markets diverging, Asia is Bearish, the west is Bullish, range is increasing. 

Catalysts: PPI & Jobless Claims @ 8:30. Fed’s Barkin @ 9:00, Powell @ 15:00. Crude Oil inventories @ 10:30. 

Quick Tip: Second Chances

Yesterday’s short entry was effective three times. The expected sellers were clearly active. Historically, the first touch works best. Subsequent touches while still tradable, have less probability of success. 

Why? Because every order initiated from the sell side reduces the number of contracts available for sale. Eventually there are no big sellers remaining. 

I recall listening to a trading instructor years ago explain Support and Resistance. He said the more times you visit support or resistance, the stronger you know that turning point is. At the time I was a newbie to technical analysis, so I accepted the explanation. 

Later, I was introduced to the concept of Supply and Demand, which claims the opposite is true. This makes more sense. Demand eventually gets satisfied. So does Supply. 

Our team trades multiple strategies which give us an abundance of setups. With that in mind there is no reason to take lower probability trades. Don’t be fooled by the occasional anomaly like yesterday’s short. 

Tired of trading alone? Our teams day trade futures and 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!