Trade Aptitude

Thursday’s Best S&P Turning Points Results: The buy never triggered, the short was filtered out on CPI news reaction.

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

Short 4052.25 stop 4056.00. Buy 3916.25 stop 3911.75

The World Sentiment Index: (+100/-100) SOARS from -29 to +57 with most major world markets bullish, especially China/Hong Kong (+7.74%). Historically price closes LOWER than the open 54% of the time. 

Catalysts: Consumer Sentiment @ 10:00. Risk ON, but not in cryptos thanks to FTX. Musk mentioned bankruptcy for Twitter. :-0 

Quick Tip: Trade Filters

It’s easy to look at a day like yesterday when the equity indexes soared to rare percentage gains and feel FOMO. Keep in mind that the #1 focus of every surviving trader is risk management. Allowing greed to take charge will eventually blow up your account. 

The CPI report created extreme volatility negating trade entry on the 3833.25 short level. The volume levels presented here work well in most market conditions. We filter out times of potentially extreme volatility from this and our other strategies. 

Here are obvious examples of some trade filters you can test and determine if they’re helpful to your strategies. 

Key Economic Reports (FOMC, CPI, Payrolls, etc.)

Time of Day, Day of Week, Day of Month. 

Earnings Release (equity specific).

Surprises (unknown catalyst creating speed and wide bid/ask spread on your tradeable asset). 

It’s not only OK to NOT trade, it’s important to have “no trade filters” in your plan. Think this way: Not losing is winning. 

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.