Trade Aptitude

Results of Tuesday’s Best S&P Futures Turning Points: Buying 4120.75 only bounced for 4.50 points. 

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

Buy 4059.25 stop 4055.00. Short 4155.50 stop 4158.50.

The World Sentiment Index: (+100/-100) jumps from -50 to -21 in a world of Bearish leaning mixed sentiment. 

Catalysts: Durable Goods & International Trade @ 8:30. Crude Oil Inventories @ 10:30. MSFT holds big gain, GOOG not so. Maybe waiting on GDP tomorrow, Personal Income on Friday.

Quick Tip: Stop & Reverse

After bouncing 4.50 points off the suggested volume level price plummeted 20+ points to the close. If you’re a novice trader you may be disappointed at the loss. If you’re a seasoned trader you’re OK with the loss. You planned for it. You only risked what you could comfortably afford to lose both financially and psychologically. 

The very aware trader might have another rule when stopping out. Reverse the original trade. Why? The momentum changed and joining the move might make sense. 

If you’re documenting all the trade setups your strategy offers, simply review every stopped trade for reversal potential. Nothing works all the time, so understand you’re working with probabilities. If a healthy portion of those failed trades could be turned into runners like yesterday, and you have some supporting evidence (higher time frame trend for example) consider adding the rule to your trade plan. 

Our team day-trades multiple strategies with edge. Sharing trade ideas in real time is a big benefit. Join the 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