Trade Aptitude

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Monday’s results: This strategy is on hold. 

The World Index: (+100/-100) drops from +21 to -14 in a world of mixed sentiment and rising volatility. 

Catalysts: Home Price Index @ 9:00. Consumer Confidence & Richmond MFG Index @ 10:00. Fed’s Cook @ 12:00 and Bowman @14:10.  

Quick Tip: Rotation

If you swing trade stocks and options you’re likely to have a portfolio of positions open. It’s easy to get mesmerized by the movers, like NVDA, and lose focus on a key and important consideration, diversification. 

All sectors of stocks don’t move in the same direction all the time. Looking at the heatmap of yesterday above (courtesy of Finviz.com) it’s interesting that while the S&P was down on the day, most of the sectors were up!

Since the S&P is a market cap weighted index, companies like NVDA, AAPL & MSFT have a larger impact. The rotation out of technology yesterday benefited others. If you had all your trades in technology it would have been a bad day. 

Our InsidersEdge software picked up a sizable buy in XOM last Friday. The call options were up 50%+ yesterday with more gains likely to come. The energy sector is benefiting from the rotation out of technology. 

Do you want to learn how to find the stocks that are ready to jump? You should watch this training session I recorded recently. I demonstrated two leading indicators of stock price that are unique enough to get you a solid edge. Click here. 

Trade Fearlessly,

Mike Siewruk

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