Results of Tuesday’s Best S&P Futures Turning Points: Neither suggested trade triggered in a relatively narrow range session. 

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

Buy 4577.75 stop 4573.50. Short 4602.50 stop 4606.25. 

The World Sentiment Index: (+100/-100) falls from +29 to -14 in a world of mixed sentiment and low volatility.  

Catalysts: Jobless Claims & Philly Fed MFG @ 8:30. Existing Home Sales @ 10:00. Tech earnings start weak. 

Quick Tip: Newbies Only Part 4

This is a multi-part process. If you didn’t read the prior three newsletters you can find them here. 

Yesterday you determined your starting and subsequent risk capital contributions. Along with your prior choice of time horizon (day, swing, or position) you’re ready to find the perfect asset to trade. 

Best choices… 

Position Traders: Stocks...

Results of Tuesday’s Best S&P Futures Turning Points: Shorting 4575.00 was only good for a 5.25-point move before stopping and breaking out higher. 

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

Buy 4577.75 stop 4573.50. Short 4631.50 stop 4637.00. 

The World Sentiment Index: (+100/-100) jumps from -7 to +29 in a world of mild Bullish leaning sentiment. 

Catalysts: Housing Starts @ 8:30. Crude Oil Inventories @ 10:30.  Corporate debt and bankruptcies are concerning… up 360% in the past two years according to Bloomberg. 

Quick Tip: Newbies Only Part 3

This is a multi-part process. If you didn’t read the prior two newsletters you can find them here. 

Yesterday you chose a time horizon to trade within and created a “calendar” with times blocked out for your trading tasks, research, execution, and review. 

It’s...

Results of Monday’s Best S&P Futures Turning Points: Shorting 4546.25 only offered a 4.25-point scalp but the breakout offered a healthier 15 points favorable (see chart). 

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

Buy 4512 stop 4507.00. Short 4575.00 stop 4580.75.

The World Sentiment Index: (+100/-100) jumps from -50 to -7 in a world of mixed sentiment and low volatility. 

Catalysts: Retail Sales @ 8:30. Industrial Production @ 9:15. Housing Market Index @ 10:00. More bank earnings.

Quick Tip: Newbies Only Part 2

This is a multi-part process. If you didn’t read yesterday’s newsletter you can find it here.

Assuming you’re passionate about trading, recognize it will take time to develop the skills, and you’re committed to succeed, let’s expand on your time commitment and how that affects your next few decisions.

If you only...

Results of Friday’s Best S&P Futures Turning Points: Buying 4531.75 picked the bottom of the session but triggered late and only offered 8 points favorable. 

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

Buy 4512 stop 4507.00. Short 4546.25 stop 4551.50.

The World Sentiment Index: (+100/-100) drops from +14 to -50 with all open major markets Bearish to neutral. 

Catalysts: Empire State MFG Index @ 8:30. Dollar weakens. No major earnings releases, several large banks tomorrow. 

Quick Tip: Newbies Only Part 1

With all the online trading education available now; blogs, podcasts, books, newsletters, video courses, indicators, and live trading rooms anyone relatively new to trading can get overwhelmed quickly. 

As much as it seems difficult to profit from trading, the truth is there are plenty of ways to beat the market. You should know...

Results of Thursday’s Best S&P Futures Turning Points: Shorting 4550.25 picked the top of the session and closed the day +12.25 points. 

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

Buy 4531.75 stop 4527.50. Short 4575.00 stop 4580.75. 

The World Sentiment Index: (+100/-100) drops from +71 to +14 in a world of mixed sentiment and very low volatility. 

Catalysts: Import Prices @ 8:30. UM Consumer Sentiment @ 10:00. Earnings Season Kicks off with BLK, WFC, and JPM beating on revenue and earnings. 

Quick Tip: Ready to Change? 

Markets are like the weather, always changing. Trends become ranges. Ranges become trends. High volatility becomes low. Low volatility becomes high. 

That’s pretty much it for markets, only four conditions. 

If you carefully analyze your losers you may find that the change in market conditions was...

Results of Wednesday’s Best S&P Futures Turning Points: Shorting 4504.50 was cancelled during CPI data release. 

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

Buy 4485.75 stop 4482.00. Short 4550.25 stop 4555.75.

The World Sentiment Index: (+100/-100) rises from +36 to +71 with all major world markets firmly Bullish. 

Catalysts: PPI & Jobless Claims @ 8:30.   

Quick Tip: Achieving Success 

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...

Results of Tuesday’s Best S&P Futures Turning Points: Shorting 4482.75 filled in the Globex last night and stopped out. 

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

Buy 4456.75 stop 4452.50. Short 4504.50 stop 4509.25.

The World Sentiment Index: (+100/-100) rises from +29 to +36 in a world of mostly Bullish sentiment and rising volatility.  

Catalysts: CPI @ 8:30. Scattered Fed speakers. Crude Oil Inventories @ 10:30. 10-year bond auction @ 13:01. Fed’s Beige Book @ 14:00.  

Quick Tip: Reversals Approach

The character of price moving up is different than price moving down. You’re likely familiar with the “stairs up, elevator down” analogy. Because fear is more powerful than greed price does tend to fall faster than it rises. 

This observation can assist you when it’s time to place a reversal trade. 

With the CPI...

Results of Monday’s Best S&P Futures Turning Points: Shorting 4443.50 picked the top of the session and ran for 19.50 points. 

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

Buy 4412.50 stop 4407.50. Short 4482.75 stop 4486.50.

The World Sentiment Index: (+100/-100) rises from +21 to +29 in a world of mild Bullish sentiment and low volatility.  

Catalysts: Nothing on the economic calendar. Fed speakers yesterday confirming more rate hikes. 

Quick Tip: Entries are Exits.

Exiting your trades is when all the money is made or lost. The loss is a simple decision, where your stop order rests. The profit decision is trickier. 

Imagine you’re long and price is behaving well, moving up firmly. The only certainty you have is that it won’t go up forever. There will be stalls, corrections, bases, and reversals within the move. 

When do you take...

Results of Friday’s Best S&P Futures Turning Points: Buying 4412.50 filled 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 4387.00 stop 4383.25. Short 4443.50 stop 4449.25.

The World Sentiment Index: (+100/-100) jumps from -29 to +21 in a world of mixed sentiment and low volatility.  

Catalysts: Nothing impactful on the economic calendar. Scattered Fed-speak. 

Quick Tip: Night Moves

Friday’s buy @ 4412.50 triggered at 2:04 AM ET last night while most of us were sleeping. The trade is still open with 15 points MFE (Maximum Favorable Excursion). 

Staging a trade before bed is simple. Enter your limit order to buy/short at the entry price. Attach a trailing stop equal to the initial risk, maybe a few ticks more. Enter any profit targets if you’re scaling out. 

If you weren’t sleeping you’d...

Results of Thursday’s Best S&P Futures Turning Points: Buying 4431.25 stopped out. 

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

Buy 4412.50 stop 4407.50. Short 4482.75 stop 4486.50.

The World Sentiment Index: (+100/-100) jumps from -79 to -29 in a world leaning Bearish on lower volatility. 

Catalysts: Employment Report @ 8:30.  

Quick Tip: Greek Philosophy 

Not being knowledgeable in Greek philosophy I had no idea who Epictetus was. But a famous quote of his that I read is applicable to trading so I’m sharing: 

“Men are disturbed, not by the things that happen, but by their opinion of the things that happen.” 

What’s your opinion about losing? 

Losing happens in trading, sometimes in streaks. Reacting to it with destructive opinions (beliefs) won’t help. 

In your review process look at...