Trade Aptitude
Results of Thursday’s Best S&P Futures Turning Points: Buying 4412.50 caught the bottom of the session and ran for 21.75 points to the next level (unpublished) which ran for 16.25 points. Feel better about the win by donating a slice to my preferred charity, the Alzheimer’s Association. Click here.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4431.25 stop 4427.25. Short 4471.00 stop 4476.75.
The World Sentiment Index: (+100/-100) jumps from Zero to +43 in a mostly Bullish world with volatility picking up.
Catalysts: Core PCE Price Index (Fed’s primary inflation measure), Personal Income & Spending @ 8:30. Chicago PMI @ 9:45. Revised UM Consumer Sentiment @ 10:00.
Quick Tip: Diversify
Yesterday’s Volume Profile levels crushed it picking both the top and bottom of the session for the second time in a week.
I can’t say the same for our intraday trend strategy. In a 28-point wide choppy day it rarely does.
All strategies don’t perform well in all market conditions. That’s why it’s important to have some choices. Just like you should diversify your wealth, you should diversify your trading strategies. Make sure they’re tuned for the different market conditions.
Since price either trends or not, and is volatile or not, the stage is set for 4 market states:
Trending/High Volatility
Trending/Low Volatility
Ranging/High Volatility
Ranging/Low Volatility
Take the time to research how your strategy performs in the different conditions historically. Then imagine if you had multiple strategies to choose from. Would that smooth your equity curve? Most likely.
Trade Fearlessly,
Mike Siewruk
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