Trade Aptitude

Results of Wednesday’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 4285.75 stop 4280.00. Short 4405.25 stop 4411.00. 

The World Index: (+100/-100) dips from -43 to -50 with most major world markets Bearish. 

Catalysts: Jobless Claims & Philly Fed MFG Index @ 8:30. Existing Home Sales @ 10:00. Fed-speak @ 9:00, 12:00 (Powell), 13:20 & 13:30. 

Quick Tip: Parabolic Moves 

Trending price moves in impulses and corrections in both directions. Three steps forward, one back. The trend continues until price moves sideways in a range. Eventually a new trend starts. Look at plenty of charts and notice this repetitive pattern. 

Sometimes the trend portion of the pattern doesn’t move in impulses and corrections. It’s a smooth series of vertical candles, a parabolic move. This is a fabulous “tell” that price may move in the opposite direction just as fast. We just don’t know when. Sometimes you’ll see reversals without a range. Other times you’ll find a range form before the reverse move. 

Get in the habit of marking these parabolic moves on your charts. It will prepare you for a potentially sizable winner when the reversal occurs, or the new range breaks out.

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Trade Fearlessly,

Mike Siewruk

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