Trade Aptitude

Results of Monday’s Best S&P Turning Points: The buy @ 3865.50 ran for 16.25 points, but the breakout did better. 

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

Buy 3811.75 stop 3806.00. Short 3883.25 stop 3888.25.

The World Sentiment Index: (+100/-100) DROPS from -7 to -57 with most major world markets leaning Bearish. Historically the close is lower than the open 56% of the time. 

Catalysts: Housing Starts @ 8:30. BOJ gets Hawkish, USD weaker.  

Quick Tip: Flexibility

Yesterday’s buy was good for a modest winning run before reversing and eliminating the origin, a prior high-volume level. 

Understanding the origin of these high-volume levels is important. Think of them as battles. High volume simply means plenty of buying interest AND plenty of selling interest. Classic Bull/Bear fight. 

The entry was won by the Bulls. But after returning to the battlefield, the Bears dominated. This means you need to be flexible and change your directional bias. You need to join the winning traders, in this case the Bears, by taking the breakout short. That was the bigger runner, at least yesterday. Keep this in mind when you’re analyzing or trading these levels. 

If you’re looking to join a trading team that uses evidence-based rules, click here for a no-risk 30-day offer. 

Trade Fearlessly,

Mike Siewruk 

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