Results of Tuesday’s Best S&P Futures Turning Points: Neither trade triggered. The levels stay on the chart. 

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

Buy 4926.00 stop 4920.75. Short 4987.00 stop 4992.75.  

The World Index: (+100/-100) eases from +19 to -13 with most major world markets modestly Bearish. 

Catalysts: Trade Balance @ 8:30. Crude Oil Inventories @ 10:30. Fed-speak @ 11:00, 12:30, and 14:00. 10-year Bond Auction @ 13:01. 

Quick Tip: Watch Bonds

Of all the economic information traders watch for directional clues the bond auctions are the rising stars. Bloomberg reported Citigroup findings that the S&P 500 index has moved 1% in either direction on auction days recently. 

How can you use this data? 

Consider adjusting your entry and exit rules. Expecting a big move and seeing it manifest allows you to...

Results of Monday’s Best S&P Futures Turning Points: Neither trade triggered. The levels stay on the chart. 

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

Buy 4926.00 stop 4920.75. Short 4987.00 stop 4992.75.  

The World Index: (+100/-100) eases from +25 to +19 with mixed sentiment and increasing volatility. 

Catalysts: Fed’s Mester @ 12:00. Plenty of earnings. 

Quick Tip: Sequencing 

If trading is 80% psychological that leaves 20% to the edge your strategy has. We really don’t know if the 80% figure is accurate but you’ll hear a big number like that from many skilled traders and coaches. Regardless the accuracy, how we behave as traders is vitally important. 

Back when racquetball was popular I was a competitive player and found a coach to improve my performance. Here’s the dialog from “lesson one.” 

...

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 4926.00 stop 4920.75. Short 4987.00 stop 4992.75.  

The World Index: (+100/-100) rises from zero to +25 with most major world markets mildly Bullish.

Catalysts: Final Services PMI @ 9:45. ISM Services PMI @ 10:00. Fed’s Bostic @ 14:00. 

Quick Tip: Reinvention

Great performers, traders included, never quit when the inevitable roadblocks and challenges arise. They adjust, learn from their mistakes, and move forward. 

You’re heard the term “reinvent yourself.” Out of favor actors do it. Corporations do it. Sometimes traders must do it. 

Like many traders who enjoyed the Tech Bubble in the late ‘90’s, I was trading a momentum strategy that printed money. It was simple and easy. Even during...

Results of Thursday’s Best S&P Futures Turning Points: Shorting 4909.75 offered a 9.25-point run. 

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

Buy 4892.50 stop 4886.75. Short 4887.50 stop 4893.25 if price falls below and retraces to entry. 

The World Index: (+100/-100) drops from +19 to zero with sentiment mixed. 

Catalysts: Non-Farm Payrolls @ 8:30. Revised UofM Consumer Sentiment @ 10:00. 

Quick Tip: Finding Edge

Every trader and any worthwhile educator of traders talks about edge. It’s what the casinos have. You can win any given day, but they will win every day. Edge = advantage. 

Edge is also mysterious to many traders. How do you find edge? Research is the best start but what are you looking for to validate it? 

Here’s a simple exercise to find and validate the edge in any trading strategy. 

1. Determine...

Results of Wednesday’s Best S&P Futures Turning Points: The buy at 4885.00 only reversed for 5.25 points during the end of Powell’s Q&A. 

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

Buy 4835.25 stop 4829.50. Short 4909.75 stop 4913.75. 

The World Index: (+100/-100) rises from +6 to +19 with sentiment mixed and low volatility… except the BSE in India up over 8% the last two days. 

Catalysts: Jobless Claims @ 8:30. Final MFG PMI @ 9:45. ISM MFG PMI/Prices @ 10:00. 

Quick Tip: Exit Ideas   

I’ve heard real estate investors say that the money is made when you buy right. While that’s partially true In the markets, the liquidity and volatility we have that they don’t means the real money is made (or lost) in the exit, not the entry. 

Losses are easy. They’re pre-planned and acceptable...

Results of Tuesday’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 4885.00 stop 4881.50. Short 4948.00 stop 4953.25

The World Index: (+100/-100) drops from +6 to zero with sentiment mixed worldwide on lower volatility. 

Catalysts: ADP Employment Change @ 8:15. Employment Cost Index @ 8:30. Chicago PMI @ 9:45. Crude Oil Inventories @ 10:30. FOMC Statement & Press Conference @ 14:00/14:30. 

Quick Tip: One Good Habit?

In his excellent book Atomic Habits author James Clear named chapter 20 The Downside of Creating Good Habits. Darn good title! 

Here’s the gist of it: once we practice something enough to become skilled and automatic we become less aware of improving it. We stop looking for the mistakes. After all, once it’s a habit you’re not thinking about it...

Results of Monday’s Best S&P Futures Turning Points: Shorting 4928.50 stopped out. Buying the breakout at 4931.00 ran for 25 points. 

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

Buy 4922.50 stop 4918.25. Short 4919.00 stop 4923.25 if price retraces up from below. 

The World Index: (+100/-100) drops from +19 to +6 with sentiment mixed worldwide on lower volatility. 

Catalysts: Home Price Index @ 9:00. Consumer Confidence & JOLTS @ 10:00.

Quick Tip: Mastering Trading

George Leonard noted in his book Mastery that “Our culture has become hooked on the quick fix, the life hack, efficiency. Everyone is on the hunt for that simple action algorithm that nets maximum profit with the least amount of effort.”

Sounds like “Lotto Mentality.” And unfortunately, those are the kinds of teasers you read in your emails every day. Don’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 4931.00 stop 4927.75 if price retraces from above to enter. Short 4928.50 stop 4931.75. 

The World Index: (+100/-100) rises from +6 to +19 with sentiment mixed worldwide on lower volatility. 

Catalysts: Nothing on the economic calendar.  

Quick Tip: Risk/Reward 

Dan Campbell coached the Detroit Lions to their first championship game in decades. They came out on fire and whipped the 49ers in the first half leading 24 – 7. 

Then Dan forgot about his risk/reward ratio. He chose to go for it on 4th and short instead of kicking the 3-point field goal. While he still had a big lead! That failed. 

Still forgetting about risk/reward, he did it again. That failed as well. 

They lost 34-31. 

6 easy points missed would...

Results of Thursday’s Best S&P Futures Turning Points: Neither trade triggered, both levels remain on the chart. 

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

Buy 4885.00 stop 4881.50. Short 4867.00 stop 4871.25 if price falls below and retraces back. 

The World Index: (+100/-100) dips from +13 to +6 with sentiment widely mixed worldwide.

Catalysts: Core PCE Price Index, Personal Income/Spending @ 8:30. Pending Home Sales @ 10:00. More China stimulus didn’t work last night. 

Quick Tip: Darwin the Trader

Traders can learn from so many great sources that have nothing to do with trading! If you think about it, trading is more psychological than mathematical. That means your ability to improve your results rests more on improving your behavior than your strategy rules. 

Here’s a great example: Charles Darwin said, “It is not...

Results of Wednesday’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 4885.00 stop 4881.50. Short 4867.00 stop 4871.25 if price falls below and retraces back. 

The World Index: (+100/-100) dumps from +50 to +13 with Asia Bullish and the west relatively flat. 

Catalysts: GDP, Jobless Claims, Durable Goods, Import/Export Balance @ 8:30. New Home Sales @ 10:00. Earnings season continues. 

Quick Tip: Ready to Retire?

You’ve probably heard or read the best ways to have a long and fulfilling retirement: Exercise regularly, sleep more, eat healthy, drink moderately, stop smoking, and minimize stress. 

Here’s one thing you might not have heard about: Connect with people who have the same purpose. It turns out that loneliness is a killer. 

Living in Florida I’m frequently asked...