Trade Aptitude

Results of Wednesday’s Best S&P Futures Turning Points: Buying 4386.75 made the low of the session and ran for 42+ points. Unfortunately, we filtered it out due to FOMC volatility. 

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

Buy 4357.50 stop 4353.25. Short 4445.00 stop 4450.75.

The World Sentiment Index: (+100/-100) falls from +36 to +7 in a world of mixed sentiment.  

Catalysts: Retail Sales, Empire State MFG Index, Philly Fed MFG, Import Prices & Jobless Claims @ 8:30. Industrial Production @ 9:15. Interest rate increases are not over and rate cuts are far off. 

Quick Tip: Compartmentalize

Here’s the setup: you have a 401-K (long only) and you trade short term for income (long and short). Every morning you go through your routine which includes assessing two different time horizons:

The big picture. Trends on monthly and weekly charts. You want these up for your 401-K.

Today. Will it be a narrow or wide day? Up or down? What catalysts are evident? You don’t care about direction, just movement. 

Do you see the challenge? For your bigger account you want the market to continue higher. For your trading account you’re willing to trade short, against what you really want. You may not realize but you could have a confidence issue with your short-term trading. You’re in conflict. 

Think about this while trading short in your day trading account: you may be betting against your bigger account but that’s simply a hedge of sorts if the trade works out. Compartmentalize your feelings.

Trade Fearlessly,

Mike Siewruk

P.S. It's our 3-year anniversary this month and we're celebrating by offering qualified new members a fabulous gift! Watch the replay of Wednesday's FOMC Live Trading for details on all the trading software and services you can have at a small fraction of the normal price. Click here.