Trade Aptitude

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Wednesday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon.

The World Index: (+100/-100) jumps from +21 to +50 with all major world markets Bullish. 

Catalysts: Jobless Claims & CPI @ 8:30. Fed’s Bostic @ 11:15 & Musalem @ 13:00. 30-year bond auction @ 13:00. 

Quick Tip: Defining Trend

“The trend is your friend… until the bend in the end.” 

Most traders agree. But not all traders define trends the same way. 

Here’s some examples: 

1. Moving average slope.

2. Higher highs, higher lows (up), lower highs, lower lows (down). 

3. Drawing trendlines based on connecting highs (down) and lows (up). 

4. Higher time interval slope. 

5. Basing price pattern breakouts. 

Take your pick. The question is “Does it really matter which?” 

If you’re consistent with your definition and usage it shouldn’t matter at all. If you’re inconsistent and bouncing from one definition to another you’re likely in trouble. 

Just like trading strategies differ and finding your favorite requires practicing many, the same applies to trend definition. Try them all in research and simulation mode to find what resonates with your personality. 

If you’re trading stocks and/or options, you should watch this training session I recorded recently. I demonstrated these two leading indicators of stock price movement that are unique enough to get you a solid edge. Get instant access here: Stock/Options swing traders.

Trade Fearlessly,

Mike Siewruk

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