Trade Aptitude

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

Tuesday’s results: This strategy is on hold. 

The World Index: (+100/-100) eases from +36 to +21 with most major world markets mildly Bullish on low volatility. 

Catalysts: Jobless Claims, Building Permits/Housing Starts, Philly Fed MFG Index @ 8:30. Crude Oil Inventories @ 11:00. Fed’s Barkin @ 15:30. 

Quick Tip: Overbought is Tricky.

Price soars way up, it’s overbought. Price plunges way down, it’s oversold. There are many indicators and chart patterns for identifying these conditions. The rub is these conditions can persist. Exiting too soon isn’t all that bad. All you did was make a little less profit. Entering the reversal too soon is usually trouble. 

The S&P once again is at an all-time high. Interest rates are still high along with inflation. Geopolitical stress remains. Gravity will prevail one day. 

Short term traders love this price action. Jump on the trends, fade the ranges. Lots of opportunities. Long term investors are likely excited (about mounting gains) and worried (about the ultimate outcome). 

Of course, if you look at the chart carefully you’ll see that this overbought condition can and does persist. There is no magical answer here. You just need to be aware and decisive daily. Bubbles burst and prices fall faster than they rise (historically about 3X as fast). The worst thinking would be complacency.

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

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