Trade Aptitude

Results of Thursday’s Best S&P Turning Points: The buy @ 3929.00 stopped out. 

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

Buy 3876.75 stop 3871.75. Short 3924.50 stop 3930.25

Globex View: Bouncing from a strong drop. 

The World Sentiment Index: (+100/-100) eases from -64 to -50 with the Western world very bearish, Asia neutral. Historically, price will close lower than the open 56% of the time.  

Catalysts: PMI Flash @ 9:45. Global recession risk rises. Triple Witching volatility.

Quick Tip: Third Friday

How does your strategy perform on the third Friday of every month? Options expiration day tends to increase volatility, especially later in the day. 

Today is a special expiration day, Triple Witching, where stock index futures, equity index options, and stock options all expire. This occurs quarterly and since this is the final quarter of the year there should be some fireworks as money managers settle their year (and potential bonuses). 

Open interest in options exceeded $8 Trillion this week, almost a record and nearly a third of the total GDP! Maybe you should be owning CBOE stock, which is up 5% in 2022 paying a $0.50 quarterly dividend while SPY is down 18%. 

Back to day trading… this is an easy analysis if you have documentation of your strategy’s performance. Look back on the third Friday of every month with extra emphasis on March, June, September & December. You might find a great filter.

Trade Fearlessly,

Mike Siewruk 

P.S. Feel free to share this blog with all your trading buddies.