Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Monday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon.

The World Index: (+100/-100) improves from -7 to +21 with Asia Bullish and the west mixed.

Catalysts: Powell’s Text ahead of Testimony @ 8:30. Fed’s Barr @ 9:15, Powell & Yellen @ 10:00, Bowman @ 13:30. 

Quick Tip: Catalysts

Whether you’re a day, swing, or position trader one thing that must happen for your trade to really move is a catalyst. This could be news, earnings, economics, and many other events. 

A strong catalyst helps in several ways. Price moves quicker and usually farther than normal. Volume increases for better liquidity. 

Ideally, you’ll be proactive in finding potential catalysts that have not hit the mainstream yet. On our Swing Trading Stock/Options team, we get an early peak by monitoring...

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Tuesday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon.

The World Index: (+100/-100) soars from -14 to +57 with all most major world markets very Bullish on rising volatility. 

Catalysts: ADP NFP Change @ 8:15. Jobless Claims & Trade Balance @ 8:30. Services PMI (Final) @ 9:45. ISM Services PMI @ 10:00. Crude Oil Inventories @ 10:30. FOMC Minutes @ 14:00. Futures market closes @ 1:15 ET for the holiday.

Quick Tip: Trend or Reversal?

You might be thinking that trading trends is safer than picking turning points. Many strategies focus on trading in the direction of a larger time frame trend. This makes sense and it generally works well. 

But it’s not necessarily “safer.”  Your initial priority is making sure your trade plan rule set has “edge,” meaning over time...

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Monday’s results: This strategy is on hold... but is improving and likely out of the drawdown soon. 

The World Index: (+100/-100) plummets from +50 to -14 most of the world leaning Bearish on modest volatility.  

Catalysts: Fed’s Powell @ 9:30. JOLTS @ 10:00.  

Quick Tip: Need to Know

Curiosity leads to learning and discovery. We want to know the “what, why, how, when & where.” 

All good. Except in day trading. 

Any time you see the price plunge or skyrocket on high volume your first impulse is to find out why, what happened?

But does it matter? As a day trader your setup likely lasts less than an hour. Do you need to understand the reason if you’re only trading price action? Do you even have the time to find out? 

If you’re a day or short-term trader the better time to be...

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Friday’s results: This strategy is on hold. 

The World Index: (+100/-100) improves from +29 to +50 with all major world markets mildly Bullish. 

Catalysts: S&P MFG PMI Final @ 9:45. ISM MFG PMI @10:00. 

Quick Tip: Blind Spot

There are so many cognitive biases that affect our trading results, and everyone has some. Possibly the worst bias is called Personal Blind Spot.

It occurs when you fail to recognize your weaknesses and shortcomings, leading to suboptimal trading decisions and poor performance.

One of the primary ways to resolve this bias is through self-reflection and self-awareness. You must take the time to assess your strengths and weaknesses and be brutally honest about their limitations.

Easier said than done, so get feedback from others, your colleagues, or mentors, to gain an objective perspective on...

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Thursday’s results: This strategy is on hold. 

The World Index: (+100/-100) jumps from -50 to +29 with most major world markets mildly Bullish. 

Catalysts: PCE Price Index/Personal Income/Personal Spending @ 8:30. Fed’s Daly @ 8:40. Chicago PMI @ 9:45. UofM Consumer Sentiment (revised) @ 10:00. Fed’s Monetary Policy Report @ 11:00. Fed’s Bowman @ 12:00, Daly @ 12:40.  

Quick Tip: Calm Down

Even if you don’t golf you’ve probably heard that it’s a mental game. Most athletics are. Trading is too. Dr. Richard Coop, author of the book “Mind Over Golf” advises players to have their own personal pre-shot routine.

Let’s use his advice but change the details to improve our trading. 

1. If you’re approaching a trade entry with a negative feeling, pause and use some physical...

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Tuesday’s results: This strategy is on hold. 

The World Index: (+100/-100) jumps from -14 to +29 with most major markets mildly Bullish. 

Catalysts: New Home Sales @ 10:00. Crude Oil Inventories @ 10:30.   

Quick Tip: Stop Struggling

If you’re struggling to get profitable or consistent in your trading there is a simple, proven solution. 

Join a team. 

There is a reason why the banks, hedge funds, and prop shops have all their traders trading in teams, rather than letting them trade alone in isolation. It works better. 

Here’s some evidence: 

From “The trading performance of individual investors” published in The Journal of Finance found that…Trading teams outperformed individual traders in terms of profitability and risk-adjusted returns. The study suggested that collaboration...

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Monday’s results: This strategy is on hold. 

The World Index: (+100/-100) drops from +21 to -14 in a world of mixed sentiment and rising volatility. 

Catalysts: Home Price Index @ 9:00. Consumer Confidence & Richmond MFG Index @ 10:00. Fed’s Cook @ 12:00 and Bowman @14:10.  

Quick Tip: Rotation

If you swing trade stocks and options you’re likely to have a portfolio of positions open. It’s easy to get mesmerized by the movers, like NVDA, and lose focus on a key and important consideration, diversification. 

All sectors of stocks don’t move in the same direction all the time. Looking at the heatmap of yesterday above (courtesy of Finviz.com) it’s interesting that while the S&P was down on the day, most of the sectors were up!

Since the S&P is a market cap weighted index, companies...

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Thursday’s results: This strategy is on hold. 

The World Index: (+100/-100) plummets from +21 to -43 with mosrt major world markets Bearish on increasing volatility. 

Catalysts: Flash MFG & Services PMI @ 9:45. Existing Home Sales @ 10:00.

Quick Tip: Being Different

Here’s a great quote from Earl Nightingale: “If you set out to be successful at something and you don’t know how to do it, look around at what everybody else is doing, and don’t do that…”

This is especially true with trading. If everyone traded the same way there would be no counter parties. We need plenty of different styles and opposing viewpoints for the markets to exist. 

If you’re still struggling it’s a good idea to stop trading live money and start looking at alternative trading styles. Be open-minded. I’ve met too...