Trade Aptitude
Results of Tuesday’s Best S&P Futures Turning Points: : Heartbreaker! Our buy at 4662.00 missed filling by ONE TICK, made the bottom of the session, and soared 36 points to the close! Reframe your thinking. You missed the trade but your strategy worked just fine.
Today’s Best S&P Futures Turning Points (all trades are filtered out during FOMC release today):
Buy 4662.00 stop 4658.25. Short 4777.00 stop 4781.75.
The World Index: (+100/-100) dips from +29 to +7 in a world of mixed sentiment and low volatility.
Catalysts: PPI @ 8:30. Crude Oil Inventories @ 10:30. FOMC @ 14:00 and Press Conference @ 14:30 (most important).
Quick Tip: Late to the Party
You probably get a stream of emails every day about trading. I sure do.
I saw one yesterday that was touting buying Arbor Realty Trust (ABR) at $14.65 to lock in a 11.5% dividend yield.
ABR was our InsidersEdge pick of the day on November 2nd at $12.79. Buying at that price not only earned you a 10% capital gain so far but brought your yield up to 13% based on the $1.69 annual dividend.
Why did we suggest buying then? Because the CEO/Chairman of the Board bought $1M @ $12.47 the day before (one of several times this year he accumulated more shares).
Think about it. If the CEO is buying he does it for two reasons: The stock is likely going up OR he wants to grab an out-sized dividend yield because the price was low, and he KNOWS the dividend is good and safe. After all, he makes the dividend decision for the company!
Now you could wait around for this or any other stock to trend up or break out to a new high but you’d be late to the party. Better to follow the Smart Money! Buy with those who know the most about their likely stock direction. Insiders, CEOs in particular.
Trade Fearlessly,
Mike Siewruk
P.S. Forward this blog to your trading buddies. Share in the wealth!