Trade Aptitude
Results of Tuesday’s Best S&P Turning Points: Buying 3998.75 filled in the Globex session and picked the bottom running 29.25 points to the next volume level.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3921.50 stop 3915.75. Short 4028.00 stop 4032.75.
The World Sentiment Index: (+100/-100) JUMPS from -14 to +36 with most major world markets mildly bullish. Historically the close was higher than the open 55% of the time.
Catalysts: PPI Final & Retail Sales @ 8:30. Industrial Production @ 9:15. Business Inventories & Housing Market Index @ 10:00. BOJ confirms stimulus, yen drops, Nikkei +2.50%
Quick Tip: Globex Exits
Yesterday’s buy triggered at 18:40 ET in the Globex session with an opposing volume level as a great target and reversal entry at 4028.00. That triggered at 21:44 ET so unless you’re very early to bed, you nailed it.
Plenty of great Globex trades happen later though when we’re sleeping. Ideally, you’ll have entry and exit prices planned and you can set and forget the trade.
Sometimes the exit won’t be as clear as this example. For those trades you’ll need to find “chart features” that suggest stalls or reversals. Double tops/bottoms, wide-range candles, and Fibonacci levels are all candidates. Trail-stopping by your original risk is another alternative.
Will the trade work out as good as if you were open managing it? Maybe not, but that’s not a good reason to pass on Globex trades. Start sim-trading your strategy during the Globex session by entering orders before you retire. Test various exits. You’ll get comfortable with the process and eventually move to real money.
If a picture is worth a thousand words then a live real-money demo of our trading strategies should be better. Join me Thursday January 19 @ 12:30 PM ET for a couple hours of action trading the S&P futures. Lessons included. Click here to register.
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to share this blog with all your trading buddies.