The Daily Market Forecast... Trade at night
Tuesday’s Blog Results: The suggested short @ 4263.75 stopped out. The Globex session prior was “perfect” (see chart).
Quick Tip: Trade at night.
Taking a break from the Trade Plan today to show why it’s so important to trade futures if you’re a day worker.
Most futures markets are open 23 hours. They start at 6 PM ET. This gives day workers the opportunity to reap the benefits of day trading. The evening session is called the Globex. It trades differently than the day session. Different players, less volume, easier trading. Every afternoon at 5:15 PM ET our team gets a detailed trade plan for the upcoming Globex session.
The chart above shows what a “perfect” Globex session can look like. Four trades were triggered and they collectively produced 148.25 points. What’s even more impressive is how little price moved against each of these trades.
Reality: You didn’t get all 148.25 points. Why not?
- The first trade ran for 34.75 points but didn’t terminate in an opposing volume level. You managed that winner and took some fraction of the move in profit. The other 3 trades terminated in the opposing volume level for full potential.
- While the reversal trades are “set/forget,” the 2nd trade required you to be awake at 1 AM ET to ensure breakout rules were met. Maybe you were sleeping.
- Placing several set/forget trades may have required more margin than you have.
Even so, if all you entered was one or two of the trades, you had a great session and more than made up for the suggested short that stopped out later in the day.
Today’s Best S&P Futures Turning Points:
Short Level: Sell 4322.00 stop 4325.75 (consider a wider stop if volatility is high).
Long Level: Buy 4193.50 stop 4187.75.
Trade well,
Mike Siewruk
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