Trade Aptitude

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

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

Buy 4131.25 stop 4127.50. Short 4176.50 stop 4180.75.  

The World Sentiment Index: (+100/-100) plummets from +36 to -50 with all major world markets Bearish. 

Catalysts: Crude Oil Inventories @ 10:30. Beige Book @ 14:00. Big layoffs announced in Tech & Entertainment

Quick Tip: Nothing Changes?

Here’s a great quote from Market Wizard Ed Seykota, “The markets are the same now as they were 50 years ago because they keep changing – just like they did then.” Clever, huh? 

We’ve seen the S&P volatility and range collapse over the past few weeks. The daily ATR (average true range) has dropped from 76 to 44. On March 23rd when ATR peaked our intraday trend strategy had an 86.75-point day. That’s highly unlikely with the current conditions. 

What to do? Listen to billionaire trader Paul Tudor Jones: “If you're not willing to change your approach when the market changes, you're not going to be successful.”

In the case of our intraday trend strategy the obvious change is expectation. Be willing to accept smaller gains. If your strategy uses a volatility-based stop loss, and it should, your risk/reward ratio won’t change. Risk less, win less. When the volatility and range comes back, you’ll naturally adjust. 

In our trading room we constantly look for subtle changes to the varying market conditions. Join the team, learn the strategies, and trade live with us daily for 30 days. If you’d rather trade alone, click here and get all the trade plans, indicators, and training we provide. Money back if you’re not completely satisfied. 

Trade Fearlessly,

Mike Siewruk