Trade Aptitude
Results of Thursday’s Best S&P Turning Points: The suggested buy @ 3977.50 was the bottom of the session and ran for 51 points.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3951.50 stop 3946.50. Short 4016 stop 4021.75. Both trades are cancelled during the PCE econ release.
The World Sentiment Index: (+100/-100) SLIPS from -7 to -29 in a mostly Bearish world with rising volatility.
Catalysts: PCE Price Index @ 8:30. New Home Sales & UM Consumer Sentiment/Inflation Revised @ 10:00. Fed’s Jefferson @ 10:15.
Quick Tip: Flexibility
Yesterday’s S&P action was a test in how flexible you are. The turning points suggested in this blog come from our proprietary version of volume profile.
After a brief rally a perfect “10:00 AM Reversal” dumped the index 60 points (1.49%) right into the suggested buy level @ 3977.50. The level based for a brief time (read yesterday’s blog to understand why) and then shot up 54 points (1.37%). Plenty of exit ideas along the way, all very profitable.
Clearly the mood was risk-off and many traders were likely adding to their short positions. If you didn’t trade our volume level and catch the bottom, you probably entered somewhere going long when the rally gained steam.
The point is great traders are flexible. They don’t “know” what’s going to happen next and they don’t trade their opinions. They trade what price is doing in real time. They have strategies with rules and significant documentation offering them solid evidence and statistical edge to act on those rules.
Our team day-trades multiple strategies with edge in a live online environment. All of them have enough evidence to improve your flexibility. 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