Trade Aptitude

Today’s Best S&P Futures Turning Points: Buy 5321.50 stop 5317.50. Short 5318.25 stop 5322.25 if price drops below and retraces up to entry. 

Monday’s results: No trade triggered in a narrow range day session.  

The World Index: (+100/-100) plummets from +50 to -57 with all major world markets abruptly turning Bearish. S&P futures stable so far. 

Catalysts: Fed Speakers: Waller & Barkin @ 9:00, Williams @ 9:05, Bostic @ 9:10, Barr @ 11:45. Waiting on NVDA earnings tomorrow. 

Quick Tip: Catalysts 

Directional trading strategies require movement to succeed, and that movement is usually initiated by a catalyst. Once the buying (or selling) catches on momentum kicks in. Simple enough. 

Popular catalysts include earnings releases, new product announcements, expansion plans, C-level changes, economic news, geopolitical events, and interest rate changes, etc. 

On occasion a company becomes so important to the overall market direction that they become a catalyst. Apple has enjoyed this position in the past. Today, the company is Nvidia, which is reporting earnings Wednesday after the close. 

Here’s some stats on how big this news will be courtesy of Bloomberg: Nvidia is responsible for 25% of the gain in the S&P 500 since October. Add in Apple, Google, Meta, and Amazon the percentage goes to 53%. Nvidia is the last to report earnings of the five. 

For day-traders this catalyst will determine their long/short bias on Thursday. For swing traders, the plan gets a little tougher. Now is a good time to consider your reaction to a disappointing forecast from Nvidia. Of course, your long portfolio will certainly welcome a strong forecast! 

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Trade Fearlessly,

Mike Siewruk

P.S.  Feel free to pass this along to your trading buddies. Share in the wealth!