Trade Aptitude
Results of Monday’s Best S&P Turning Points: Shorting 4066.00 offered an 8-point move. The breakout afterward offered 12.50 points.
Today’s Best S&P Turning Points (trades are cancelled during Powell’s testimony if volatility is high):
Buy 4019.25 stop 4015.25. Short 4103.75 stop 4109.50.
The World Sentiment Index: (+100/-100) REMAINS at +14 in a world of mixed sentiment and low volatility. Historically price closed above the open 56% of the time with 2X the gain versus loss.
Catalysts: Powell Testifies @ 10:00. Expect extra volatility after the prepared statement during the Q&A.
Quick Tip: Breakouts
You’ve no doubt heard “old resistance becomes new support” as price passes through a chart pattern. The same applies to the volume-at-price levels shared in this blog.
The chart above shows the entries for reversal and breakout clearly. What isn’t clear at all is when you took profit on the initial short. An 8-point move is not huge, but enough to start scaling out and/or moving your stop.
The best approach we find in thousands of trades documented is “2-4-Trail.” Exit with 2 points, 4 points, then trail stop. Adjusting these targets for a fast-moving market (in your direction) makes sense.
Our team day-trades multiple strategies with edge in a live online environment. It’s beneficial to share exit ideas with other good traders. Join our team, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away!
Trade Fearlessly,
Mike Siewruk