Trade Aptitude

Results of Friday’s Best S&P Futures Turning Points: Shorting 4598.50 was only good for a 6-point scalp but the general area held as the high including through the weekend. 

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

Buy 4557.50 stop 4551.75. Short 4628.50 stop 4632.75. 

The World Index: (+100/-100) falls from -14 to -50 with most major world markets Bearish. 

Catalysts: Factory Orders @ 10:00. 

Quick Tip: Get Fearful

We all trade to win and make a profit. The ups and downs happen along the way. The time to get laser-focused is when you’re feeling like you don’t need to. 

The recent rally in the S&P has us closing in on all-time highs. Our team’s swing trading portfolio using Insiders Buys and Unusual Options Activity (long only trades) soared last week. It’s natural when everything is effortlessly going your way to relax and enjoy the ride. 

But that is a dangerous reaction. You’ve likely heard Buffett’s famous quote “We try to be greedy when others are fearful, and fearful when others are greedy.” 

Translate that fear into a positive action. Take a good look at your portfolio and make the buy/sell/hold decision for each position. For example, Friday’s continuation run from November was broadly enjoyed in our portfolio. Yet there were a few profitable trades that didn’t participate. Think about it. If the market’s soaring and everything is rising but you have some laggards, should you keep them? 

That’s just one example. Take the time to analyze each position carefully, don’t get complacent with the rising tide. 

If you’re a swing or position trader of stocks or options, check out this recent training session on using the best Leading Indicator, Insiders Buys, to improve your results.  

Trade Fearlessly,

Mike Siewruk

P.S. Forward this blog to your trading buddies. Share in the wealth!