Trade Aptitude

Results of Tuesday’s Best S&P Futures Turning Points: Buying 4456.76 stopped out in a fast moving plunge. Read the Quick Tip for more on this. 

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

Buy 4412.50 stop 4407.50. Short 4492.50 stop 4498.00. 

The World Sentiment Index: (+100/-100) advances from -64 to -43 with Asia down hard and the west flat. 

Catalysts: Building Permits @ 8:30. Industrial Production @ 9:15. FOMC Meeting Minutes @ 14:00. China intervenes to protect stock market plunge. 

Quick Tip: Caveat on Reversals 

The suggested turning points in this newsletter are derived from high volume price levels. These represent fair value since buyers and sellers traded heavily at the price both must have considered acceptable. 

Typically, these are good turning points. But when price has significant momentum they can be violated. 

Use common sense when considering these levels for a reversal. With the higher time frame price trending down now any acceleration in momentum down should give you pause for reversing. 

You’ll miss some opportunities for sure. But the probabilities are less supportive. Avoid FOMO (Fear Of Missing Out). 

A better time to trade the reversal is when price is range-bound. 

Trade Fearlessly,

Mike Siewruk 

P.S. Are you an emotional trader?  If so, you need to change your behavior.  Learn how here.