Trade Aptitude

Results of Tuesday’s Best S&P Turning Points: Shorting 4052.50 stopped out.  

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

Buy 4001.75 stop 3998.00. Short 4147.00 stop 4152.75. 

The World Sentiment Index: (+100/-100) JUMPS from -50 to +29 with in a world of modestly Bullish sentiment. Historically price closed lower 56% of the time. 

Catalysts: ADP Employment Report @ 8:15. ISM MFG Index, JOLTS & Construction Spending @ 10:00. EIA Petroleum Status Report @ 10:30. FOMC Announcement @ 14:00. FOMC Press Conference @ 14:30. Note that market reactions are greater during the press conference.  

Quick Tip: Trading Today? 

The beauty of trading is there are many styles and strategies to choose from. Once you realize this you’ll feel empowered, excited, and eager to trade. Bad idea. 

Your go-to book on learning trading should be Enhancing Trader Performance by Brett Steenbarger. Among the dozens of proven tips and lessons he shares, this one is extremely relevant on FOMC day: 

“Trader performance is less a function of what traders learn than of how they learn it.” 

If you’ve taken the time and put in the effort to sim-trade many different styles, strategies, and markets to find what suits your personality, as Steenbarger recommends, today’s expected volatility may grant you a day off. It could also be your ideal trading environment. 

Do you know which? Perfect practice in all market conditions and careful documentation of all results, trades taken or not, will answer that question.

In our trading room we manage multiple strategies with edge and monitor their performance in all market conditions to filter out those with poor results. Learn more here. 

Trade Fearlessly,

Mike Siewruk