Trade Aptitude

Today’s Best S&P Futures Turning Points: Buy 5032.50 stop 5027.25. Short 5176.00 stop 5181.75.

Monday’s results: The buy at 5004.75 missed filling by 1.25 points and ran 60+ points to the short at 5070.50, which only offered a 6+ point scalp. 

The World Index: (+100/-100) eases from +57 to +43 as the world remains mildly Bullish. Positive note: the UK’s FTSE 100 index hit a record high. 

Catalysts: Services & MFG PMI Flash @ 9:45. New Home Sales & Richmond Fed MFG Index @ 10:00. 2-Year Treasury auction @ 13:01. 40% of the S&P 500 will report earnings this week. 

Quick Tip: Wiggle Room

The strategy that uncovers the turning points in this blog is called Volume Profile. It uses volume at price, not in time, to determine fair value. How traders buy and sell around these high-volume price levels will vary based on their own risk tolerance and other indicators they may use for confluence. 

For the ruleset I follow, yesterday was a heartbreaker for me. The buy level suggested was just below the bottom of the session and ran a healthy 60 points to the short level suggested. I missed it, but some traders will give these levels extra wiggle room for either or both the entry and the exit. 

I encourage you to mark these levels on your chart and review their performance. Not often, but enough of the time that wiggle room will produce outstanding results, as it did yesterday. 

It could also be beneficial to do the same exercise for any other strategy ruleset you trade. 

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Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!