Trade Aptitude
Results of Friday’s Best S&P Turning Points: Buying 3892.50 stopped out. The breakout short from there ran for only 9.75 points.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3864.50 stop 3860.50. Short 3999.00 stop 4004.75.
The World Sentiment Index: (+100/-100) EASES from -86 to -57 with most major world markets very bearish on higher volatility. S&P Futures are currently bucking that trend near flat. Historically the close was lower than the open 73% of the time.
Catalysts: Nothing on the economic calendar. SVB & Signature Bank depositors saved but who’s next? CPI tomorrow.
Quick Tip: Why Day Trading?
Whenever I tell someone I’m a day trader they usually react with a blank stare and say something like “That’s very risky, isn’t it?” Then I’ll say that regardless of your time horizon, you need to have a solid risk management plan in place.
It usually ends there. Occasionally, they’ll keep asking questions digging deeper for understanding. So, I might explain it this way:
Both the trader who buys a stock to hold and the day trader are working with probabilities. No one knows for sure what the next hour or month will hold. One aspect of probability theory is the analysis and consideration of unforeseen events. Which trader has more potential unforeseen events?
The failure of SIVB is a good example of how dramatically different longer time frame investing is from day trading. On a daily chart of SIVB you’ll see December was a range-bound pattern around $215 per share. Then it broke out of that range to the upside on January 4th. You buy around $240 and watch it run to $333 in only 30 days.
Last Thursday it closed at $267 so you’re still profitable. Today it looks to open at $39. The government stepped in yesterday and will guarantee all the deposits, so the customers are whole. Shareholders were crushed. To make matters worse, that was real cash loss. The only real cash loss day trading futures with interest-free, generous leverage is the stop you choose to lose when you enter. Which seems riskier now?
There are many more benefits to the futures market. Read the white paper here, then 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