Results of Friday’s Best S&P Futures Turning Points: Buying 4429.75 happened in the Globex last night, good for an 8-point bounce. The breakout short is still open.  

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

Buy 4386.75 stop 4382.00. Short 4471.00 stop 4476.75.

The World Sentiment Index: (+100/-100) plunges from +50 to -43 with all major world markets flat to leaning Bearish.    

Catalysts: Housing Starts @ 8:30.  

Quick Tip: No FOMO

Seasoned traders spend time on the review process. They compare their results (behavior) to their plan. This is an excellent way to improve incrementally and get more disciplined. 

There is a “downside” you’ll need to handle, though. Since you can’t take or get filled on every trade setup you’ll find in your review process that you miss plenty of...

Results of Thursday’s Best S&P Futures Turning Points: Shorting 4445.00 stopped out but the breakout ran for 27 points to the next volume level, then reversed for +8.50 points at the close. 

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

Buy 4439.75 stop 4434.25. Short 4504.50 stop 4509.25

The World Sentiment Index: (+100/-100) jumps from +7 to +50 with all major world markets Bullish.   

Catalysts: Fed’s Barkin @ 9:00. UM Consumer Sentiment @ 10:00. 

Quick Tip: Breakouts

Yesterday’s action reminds me to make sure you’re clear on how to trade the levels presented in this newsletter. 

They can be reversals and breakouts. Obviously, the breakout occurs after a reversal attempt. The reversal might stop out like yesterday, but it could also be a winner that turned later to penetrate the level and signal a breakout....

Results of Wednesday’s Best S&P Futures Turning Points: Buying 4386.75 made the low of the session and ran for 42+ points. Unfortunately, we filtered it out due to FOMC volatility. 

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

Buy 4357.50 stop 4353.25. Short 4445.00 stop 4450.75.

The World Sentiment Index: (+100/-100) falls from +36 to +7 in a world of mixed sentiment.  

Catalysts: Retail Sales, Empire State MFG Index, Philly Fed MFG, Import Prices & Jobless Claims @ 8:30. Industrial Production @ 9:15. Interest rate increases are not over and rate cuts are far off. 

Quick Tip: Compartmentalize

Here’s the setup: you have a 401-K (long only) and you trade short term for income (long and short). Every morning you go through your routine which includes assessing two different time horizons:

The big picture. Trends on monthly and weekly...

Results of Tuesday’s Best S&P Futures Turning Points: Neither suggested level triggered. 

Today’s Best S&P Futures Turning Points (filtered out during FOMC volatility): 

Buy 4386.75 stop 4382.00. Short 4480.00 stop 4485.75.

The World Sentiment Index: (+100/-100) eases from +43 to +36 with the west carrying the Bullish flag. 

Catalysts: PPI @ 8:30. Crude oil inventories @ 10:30. FOMC announcement @ 14:00, press conference @ 14:30. 

Quick Tip: Quick Tip: FOMC Volatility

FOMC rate announcements and press conferences are the most important repeating catalysts. The volatility can be extreme which means you need to plan for how and when you’re going to trade the session, if at all. 

The trading hours prior to the announcement show the expected collapse of volatility (see histogram above). 

It would seem the volatility would be highest at the time of the rate announcement. But as you can see in the...

 Results of Monday’s Best S&P Futures Turning Points: The short @ 4388.00 held as the high of the session but only retraced for a few points of gain by the close. 

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

Buy 4357.50 stop 4353.25. Short 4445.00 stop 4450.75. 

The World Sentiment Index: (+100/-100) lifts from +36 to +43 with all major world markets neutral or mildly bullish on low volatility. 

Catalysts: CPI @ 8:30. Oracle beats giving Tech a modest boost. 

Quick Tip: Quick Tip: Reframing

Yesterday’s short was a solid winner. It just didn’t pay out much. This is how you can re-frame your thinking when a trade fails or in this case, offers a small win. 

Look at the positives. You didn’t lose. You followed your rules with discipline. Your rules were pretty darn good finding a reversal level that hasn’t...

 Results of Friday’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 4307.50 stop 4303.25. Short 4388.00 stop 4392.75. 

The World Sentiment Index: (+100/-100) lifts from +7 to +36 with all major world markets neutral or mildly bullish on low volatility. 

Catalysts: Nothing on the economic calendar. Waiting on CPI & FOMC. 

Quick Tip: Quick Tip: Trader or CEO?

You should manage your trading like you would a business. Even if you’re employed, think of it as a side business. You’re unlikely to have employees in your trading business and that means you need to wear different “hats” to be successful. At times you will need to act the roles of CEO, CFO, and Trader. 

The CEO creates the vision then ensures it becomes a reality. You are...

Results of Thursday’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 4266.00 stop 4260.75. Short 4334.75 stop 4340.00. 

The World Sentiment Index: (+100/-100) dips from +21 to +7 in a world of mixed sentiment with low volatility. 

Catalysts: Nothing on the economic calendar. 

Quick Tip: Your Hot List

If you’re a directional stock or options trader you know the importance of stock selection. All the trading skills in the world don’t matter if you’re trading assets that don’t move. 

You can look at the historical performance of stocks to assume their past will repeat in the future. 

But there is a better way… a true Leading Indicator. Insider buying. Key executives have only one reason to write 7 and 8-figure checks to own more of their company....

 Results of Wednesday’s Best S&P Futures Turning Points: Shorting 4305.missed filling by 1 point. Buying 4266.00 filled in the Globex session last night running for 12.75 points and still open currently. 

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

Buy 4228.50 stop 4223.25. Short 4305.75 stop 4311.25. 

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

Catalysts: Jobless Claims @ 8:30. 

Quick Tip: Set/Forget

One of the nice features of trading the levels from this newsletter is the set/forget entry available on the reversals. 

Yesterday’s buy at 4266.00 didn’t trigger until 12:04 AM ET. Depending on your time zone you may have been sleeping. Placing the order beforehand brought you a welcome “Good Morning!” 

You have a choice of stops: leave the...

Results of Tuesday’s Best S&P Futures Turning Points: Shorting 4305.75 caught the high of the session twice and ran for 12 and 14.75 points. Feel better about your win by donating a slice to my preferred charity, the Alzheimer’s Association. Click here.

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

Buy 4266.00 stop 4260.75. Short 4305.75 stop 4311.25. 

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

Catalysts: International Trade @ 8:30 Crude Oil Inventories @ 10:30. 

Quick Tip: Filtering

The successful turning point from yesterday did not come from a chart pattern. This level was derived from the highest volume on the price axis the prior day. They’re “hidden” on a time-based chart. The theory is that the price was fair, many orders were...

Results of Moday’s Best S&P Futures Turning Points: Shorting 4305.75 caught the high of the session and ran for 32.75 points before closing the day +25.75.  Feel better about this gift by donating a slice to my preferred charity, the Alzheimer’s Association. Click here.

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

Buy 4266.00 stop 4260.75. Short 4289.75 stop 4294.25. 

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

Catalysts: Nothing obvious. 

Quick Tip: Adjust Expectations

It’s important to be in harmony with current market conditions. While being disciplined to follow your rules, ask yourself “Do I have different rules for volatile and quiet markets?” 

Today’s Globex range is currently 11.25 points trading trendless inside...