Trade Aptitude

Monday’s Best S&P Turning Points Results: Price chopped to a lower close without reaching the suggested levels (again). 

Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets): 

Short 4036.75 stop 4042.25. Buy 3932.00 stop 3927.25.

The World Sentiment Index: (+100/-100) RISES from +21 to +43 with most major world markets bullish.  Historically price closes lower than the open 54% of the time. 

Catalysts: PPI-Final & Empire State MFG Index @ 8:30. Positive start in China meeting. Brainard suggests 50 basis points in December. 

Quick Tip: Your Flexible Advantage

There is no question the information, systems, access, and talent Wall Street enjoys are great advantages over the retail trader. But we have one advantage they would love to have and won’t. Small size. 

Warren Buffett bought 60 million shares in Taiwan Semiconductor. It took 3 months. That’s about 1 million shares a day from the then average volume of 11 million. That process had to be carefully managed. Concealing that he was a buyer is important to him because once he announces the investment the herd follows. In this case TSM popped 9%+.

How long do you think it will take Warren to exit this investment? He doesn’t trade short term but he did have a rather quick time with IBM years ago. Could happen. 

You simply click your mouse. And that means you can be very flexible. You can choose a direction and if you’re wrong you can instantly exit or reverse direction. Just make sure you made the decision in advance of stopping out. 

Trade Fearlessly,

Mike Siewruk

P.S. If your strategies have proven edge and your results are spotty then you need to change your behavior. Click to learn how.