Results of Monday’s Best S&P Futures Turning Points: Shorting 4510.25 stopped out in the Globex session last night. 

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

Buy 4439.50 stop 4436.00. Short 4543.75 stop 4548.25.

The World Sentiment Index: (+100/-100) drops from -21 to -64 with all major world markets except Tokyo very Bearish on rising volatility. 

Catalysts: Retail Sales, Empire State MFG Index, Import Prices @ 8:30. Chinese economy/debt issues. 

Quick Tip: Resilience 

Baseball great Harmon Killebrew said, “The most important athletic ability is the talent to comeback from behind.” True in sports, true in business, true in trading. 

The great come-back athletes were different than their peers. They knew there would be setbacks. They thought in advance how to handle them. They didn’t get emotional. They snapped to attention...

Results of Monday’s Best S&P Futures Turning Points: Buying 4131.25 triggered in the Globlex catching the low of the session and is still open with 12+ points MFE. 

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

Buy 4120.75 stop 4116.00. Short 4176.50 stop 4181.75. 

The World Sentiment Index: (+100/-100) drops from -21 to -50 with all major world markets modestly Bearish. 

Catalysts: Home Price Index @ 9:00. Yellen speaks on Biden’s economic agenda @ 9:30. Consumer Confidence & New Home Sales @ 10:00. 

Quick Tip: Night Moves

We’ve noticed that the volume levels suggested in this newsletter have been performing much better during the Globex session. Historically, this happens often. Keep that in mind when they don’t trigger during the day session. 

Yesterday’s buy @ 4131.25 triggered at 4:21 ET while most of us...

Tuesday’s Best S&P Turning Points Results: Buying the 3886.00 level only offered a 9.25-point gain. Shorting the breakout offered a 28.25-point runner.  

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

Waiting on FOMC to determine potential turning points. Join us for LIVE trading during the announcement @ 2PM ET. Click here to register for this free demo. 

The World Sentiment Index: (+100/-100) PLUMMETS from +86 to +7 in a world of mixed sentiment. Historically it’s a coin toss on direction. No edge.  

Catalysts: Maybe ADP Employment Report @ 8:15. EIA Petroleum Status Report @ 10:30. FOMC Announcement @ 14:00 and Press Conference @ 14:30. 

Quick Tip: Gold on FOMC

FOMC today. The mother of all catalysts. The stock market indexes will react violently offering some great opportunities if you’re willing...

Monday’s Best S&P Turning Points Results: Narrow range day yesterday, neither trade idea triggered. 

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

Short 3966.50 stop 3971.25. Buy 3886.00 stop 3880.25

The World Sentiment Index: (+100/-100) SOARS from zero to +86 with all major world markets bullish, especially China/Hong Kong. Historically the close is higher than the open 63% of the time. 

Catalysts: PMI MFG Final @ 9:45. ISM MFG Index, Construction Spending & JOLTS @ 10:00. Dollar eases. Yield curve near recession warning. Waiting on FOMC Wednesday. 

Quick Tip: The Big Problem

Are you working on solving it? Most traders aren’t.  Why? Because it’s hard. It’s a challenge. It’s the single most impactful change you can make to improve your trading performance. Most people would do anything else rather than solve the one problem that...

Friday’s Best S&P Turning Points Results: The suggested short level was only good for a 7.25-point scalp. 

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

Short 3966.50 stop 3971.25. Buy 3849.50 stop 3843.75. 

The World Sentiment Index: (+100/-100) SOARS from -64 to zero in a world of mixed sentiment. Historically it’s coin toss where we’ll end up. No edge to report.  

Catalysts: Chicago PMI @ 9:45. Waiting on FOMC Wednesday. 

Quick Tip: Exit Art

In teaching over 4000 traders in the past 13 years I’ve found the most common goal is finding better trade setups. It seems we naturally want to know when, where and with what are we going to get started. Entry rules. 

The fact is that entries are easy to find. Investing much of your research time on finding better entries is not nearly as productive as finding better exits. 

Why?...

Thursday’s Best S&P Turning Points Results: Neither suggested level triggered. 

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

Short 3841.00 stop 3846.25. Buy 3723.50 stop 3717.75. 

Quick Tip: Belief #1

Success at trading, at anything, is formulaic. No one stays successful at anything without a proven formula to follow. What’s yours? 

You may think it’s your trade plan. You may think you need the hottest strategies, the best broker, more risk capital, and better sources of information. All that surely helps but the foundation for your success starts within you. It’s your belief. 

Do you honestly believe you can become a top-notch trader? Or are you thinking of giving it a try?

Trying isn’t enough to overcome the challenges of anything worthwhile. It’s a negative belief. Knowing you’ll succeed is a positive...

Wedneday’s Best S&P Turning Points Results: The suggested short @ 3869.50 was only good for a 7.50-point move. The breakout from that level ran for 19.00 points to the next level.  

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

Short 3923.25 stop 3928.25. Buy 3792.25 stop 3787.00

Quick Tip: A Bag Full

Legendary golf coach Harvey Penick wrote in his best-selling Little Red Book that you could build a solid game of golf around ONE CLUB. The 7-iron. Amazing and true. More importantly, his wisdom can be applied to trading. 

Your email, like mine, is probably jammed with dozens of “how to trade” offers every day. Your choices for learning strategies, getting trained, and building your trading skills are endless. In fact, you’re probably CONFUSED. Too many choices leads to indecision. 

If Harvey were coaching you he would probably say...

Monday’s Best S&P Turning Points Results: :Neither volume level triggered. 

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

Short 3896.00 stop 3901.75. Buy 3719.25 stop 3713.50.

Quick Tip: Move Stop or Not? 

Yesterday you learned how to optimize your stop placement. How about moving it as the trade goes in your direction? 

Never moving your stop is saying market conditions don’t change, which makes no sense at all. 

In our trading room we find that aggressive stop movement is warranted in certain market conditions. Slow stop movement is warranted in other conditions. Let’s define the difference between “aggressive” and “slow” stop movement. 

Using our strategy rules the aggressive exit moves the stop to breakeven for the trade itself after target 1 is filled, and to breakeven for remaining contracts after...

Thursday’s Best S&P Turning Points Results: The short @ 3738.50 only offered 8.75 points. The breakout after failure offered 5.50 points. See chart. 

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

Short 3731.25 stop 3736.00. Buy 3605.00 stop 3599.25.

Quick Tip: Trader’s Fuel

If trading is a performance endeavor (it is) then the committed trader will train for peak performance. Not just practicing trading different markets and strategies in simulation mode, but training physically and mentally. 

On the physical side there is exercise, oxygenation, hydration, and food. Get in the habit before you open your trading platform. 

On the mental side there is discipline, self-control, and confidence. 

Here’s some great news: In Roy Baumeister’s book, Willpower (must read), he references dozens of studies that overwhelmingly prove how...