Trade Aptitude
Results of Friday’s Best S&P Turning Points: Shorting 4050.25 offered a 7-point move before closing the session around breakeven.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 4019.25 stop 4015.25. Short 4066.00 stop 4070.75.
The World Sentiment Index: (+100/-100) DROPS from +64 to +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: Maybe Factory Orders @ 10:00. Waiting on Powell’s testimony on Tuesday/Wednesday. Holding cash at the current T-Bill rate of 4.74% is growing very popular.
Quick Tip: Know Your Opponent
Trading is a battle. Bulls vs. Bears. Considering what other traders are doing and why when you’re entering or exiting a trade is good thinking.
You’re following a rule-based trade plan so you know when you get a signal why you’re entering. You simply have edge, not a fool-proof trade. This means there will be times when you get stopped out quickly. Document these events. Analyze the chart. Think about what kind of setup was powerful enough to kill your trade. Eventually you’re likely to find a filter to avoid some of these losers.
This thinking works well with exits too. Here’s an example: I was long the S&P on Friday afternoon using our trend strategy looking for a price level to take some profit. Our volume-at-price strategy was signaling a short entry @ 4050.25 (the suggested turning point from this blog). OK! Time to lighten the position.
You don’t need to trade multiple strategies. But you should have a working knowledge of different styles so you can consider their entries as your profitable exits.
Learn more about The Art of Exits and our 6-month Strategy Review in this recording.
Our team day-trades multiple strategies with edge in a live online environment. We frequently get ideal exits, even reversals by knowing our “opponent” has edge too. 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