Trade Aptitude

Results of Thursday’s Best S&P Futures Turning Points: Neither trade triggered.

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

Buy 4517.00 stop 4511.25. Short 4598.50 stop 4604.25. 

The World Index: (+100/-100) rises from -36 to +14 with China/HK Bearish and the west mildly Bullish.  

Catalysts: Building Permits & Housing Starts @ 8:30. Fed’s Goolsbee @ 9:45. 

Quick Tip: Flexcasting

Forecasting is tough. You can find and analyze all the available evidence and still get it totally wrong. That’s where flexibility comes in. Hence the word “Flexcasting.” 

Here’s an example:

1. Historically the S&P trends long the best on Fridays. Maybe it’s due to short covering before the weekend. Maybe it’s just the high spirits going into two days off. It doesn’t matter. The evidence is there.

2. There are no major known catalysts today that could cause a selloff. 

3. The big picture trend is strongly up. 

4. The Globex session has been quiet so far with a narrow range of 12.75 points. This coupled with the lack of catalysts suggests a relatively narrow day session. 

5. The price is currently above yesterday’s high and key support levels. 

It seems like an easy forecast. Look for good buying opportunities. Expect the market to melt up. 

Since we acknowledge forecasts can be wrong, we should Flexcast the day. This simply means being ready and willing to adapt to current market conditions. This means knowing you’re either going to not trade if the evidence doesn’t hold up or you’re going to change your mind and trade with the price action. 

Sometimes flexibility is easier said than done. That’s why trading with a team is helpful. Join our team. You can learn multiple strategies tuned for different market conditions and trade live with us for 30 days. New reduced price offer. Money back if you’re not blown away!

Trade Fearlessly,

Mike Siewruk

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