Trade Aptitude

Results of Monday’s Best S&P Futures Turning Points: Buying 4339.25 delivered 39.25 points to end the session at the suggested short level of 4378.50. 

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

Buy 4307.50 stop 4303.25. Short 4378.50 stop 4383.25.

The World Index: (+100/-100) drops from -36 to -57 with all major world markets Bearish.  

Catalysts: Home Price Index @ 9:00. New Home Sales, Richmond MFG Index, and Consumer Confidence @ 10:00. Government shutdown news.  

Quick Tip: End of Session Exit

If you bought yesterday’s suggestion (see chart) and let it ride to the close you would be very pleased. Watching the open trade all day would have been difficult. There were many dips and just about any trailing stop would have limited your potential. 

There is one great trader I know of who uses the End of Session for many of his exits. Larry Williams. In his book Long Term Secrets to Short Term Trading, he writes that after extensive research he nets out better by not watching the trade and simply leaving his stop active and returning near the close to exit. 

This is not a suggestion to blindly do the same. You should research your own strategies and determine if that is an applicable exit. Clearly it works for Larry’s but verifying using your own data makes sense. 

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Trade Fearlessly,

Mike Siewruk

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