Trading in the 5th Dimension by Trade Aptitude
Yesterday’s results: Buying 5996.50 stopped out. Shorting the retracement to 5993.50 offered a 6.75-point scalp.
Today’s Best S&P Futures Turning Points: Short 6032.75 stop 6037.75. Buy 6037.50 stop 6034.75 if price retraces down from above (filtered out during CPI release).
The World Index: (+100/-100) soars from -71 to zero with the major world markets mixed on falling volatility.
Catalysts: CPI @ 8:30. FOMC speakers; Kashkari @ 8:30, Logan @ 9:45, Musalem @ 13:00, Schmid @ 13:30. Federal Budget Balance @ 14:00.
Quick Tip: Trading in the 5th Dimension
You could argue that chart trading is 3-dimensional. You’re analyzing price, volume, and time on a chart.
If you add fundamental analysis to your plan that would be your 4th dimension, and it would very likely improve your performance. Knowing more about the assets, sectors, and economy can only help you.
There is a Fifth Dimension in trading that will help you even more. Let’s call it “knowing the unknown.”
The obvious “unknown” is price direction. We collect and analyze all the known information to get probabilities in our favor to predict price direction.
But there are those that "know" this unknown better than anyone else: The C-Level executives and board members. They have all the non-public knowledge we so badly want and need.
The great news is they “tell” savvy traders, in advance, when they strongly believe their stock price is going up. How? By buying it. By writing a six- seven- or eight-figure personal check. That can only mean they’re confident that the price will rise.
The great Peter Lynch, manager of the Magellan fund, knew this. That’s why he commissioned a Wall Street research firm to collect and analyze Insider buying for him. His track record speaks for itself. He grew the fund from $20 million to $14 billion and averaged 29.2% annualized return, twice the S&P 500.
You’re invited to take a deeper dive into this fascinating evidence. Join me today, Wednesday November 13 @ 1PM ET for a free training session on how well this approach works. No disappointments!
Trade Fearlessly,
Mike Siewruk
P.S. Feel free to pass this along to your trading buddies. Share in the wealth!