The Daily Market Forecast... how orders fill.

Thursday’s Blog Results: Your suggested buy level at 4786.25 ran for 13.50 points.

Today’s Trading Tip: How fills work.  

Trading futures contracts on the Globex exchange (cmegroup.com) might be the fairest market in the world. Why? Because the orders are time-stamped upon arrival and filled on the first-in first-filled basis. No one gets preference. You’re in a line and it doesn’t matter if you’re a small retail trader or an institution.

Real-world example: Looking at the winning trade from yesterday (see chart above) you’ll notice that price turned right on the suggested buy level. Not even one tick penetration. This does NOT mean you got filled. Some contracts were filled there but maybe not yours. Maybe you were too far back “in the line” and price bid higher before you filled.

One of the many benefits of this strategy is that you can place these orders when you receive this email. It was sent at 7:14 AM ET and the trade was activated at 9:31 AM ET. Entering the order a couple of hours prior would get you closer to the “front of the line” and offer more fills.

Today’s Best S&P Futures Turning Points:

Short Level: Sell 4790.00 stop 4793.50 (3.50 risk).

Long Level: Buy 4722.75 stop 4718.00 (4.75 risk).

Happy New Year!

Mike Siewruk

P.S. If you enjoy this daily blog, let me know. Doing this every day is like talking to the universe and not getting an answer! Drop me an email with your opinion, suggestion, critique, or request for a specific trading lesson. Thanks in advance! [email protected].