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

Thursday’s results: This strategy is on hold. 

The World Index: (+100/-100) eases from -29 to -14 with sentiment mixed on varying volatility, leaning Bearish. 

Catalysts: PCE Price Index, Personal Income & Spending @ 8:30. Chicago PMI @ 9:45. Fed’s Williams @ 12:05. 

Quick Tip: Good Question

Think for a moment before you answer this seemingly simple question. Do you find it harder to take a loss or a profit? 

The answer says a lot about your trade plan, style, trading psychology, and what you need to work on. 

If your answer was a loss, then your risk management plan needs help. You’re probably risking too much. You might be trading the wrong strategy, one with more losers than winners like trend following. Your personality might be the problem if you get annoyed being wrong (trading is about probabilities, not certainties). 

If your answer was a profit, then your risk management is fine, but your profit target...

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

Tuesday’s results: Price whipsawed the volume level stopping out both trades.  

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

Catalysts: Richmond MFG Index @ 10:00. Fed’s Williams @ 13:45. Beige Book @ 14:00. 

Quick Tip: Waiting 

I grew up in Michigan. A local saying about the weather was “Wait a day, it’ll change.” Now I live in Florida where during the rainy season you can drop your waiting time to an hour!

Markets are very similar. They trend up or down and then move sideways. Back and forth. Patience pays off and impulsivity gets hammered. 

This cyclicality applies to your strategy performance too. You’ll have winning streaks, flat periods, and losing streaks. Given this reality you need rules to manage each condition to prosper, even survive. 

Here’s an example: The volume levels suggested here are one component of an overall strategy th...

Today’s Best S&P Futures Turning Points: : Buy 5321.50 stop 5317.50. No short suggestion today. 

Friday’s results: Neither trade triggered. 

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

Catalysts: Fed Speakers: Bostic @ 7:30 & 8:45, Waller & Barr @ 9:00, Jefferson @ 10:30, Mester @14:00. 

Quick Tip: Blackjack 

Much has been said about the similarities between trading and gambling. Much is true. All is not. A fabulous book you should read about this topic is A Man for All Markets by Edward O. Thorp, an accomplished mathematician, author of Beat the Dealer, and acclaimed hedge fund manager. 

When Thorp tested his blackjack card counting system in the real world, financed by two wealthy (and greedy) millionaire businessmen, he uncovered a significant “edge” that you can and should apply to your trading. 

His backers wanted him to bet big right from the start. Thorp opposed this idea. He was logical and methodical. Betting big before havin...

Today’s Best S&P Futures Turning Points: Buy 5185.25 stop 5181.75. Short 5249.50 stop 5253.50. 

Tuesday’s results: Neither trade triggered. 

The World Index: (+100/-100) drops from +29 to -7 with Asia Bearish and the western world mildly Bullish. 

Catalysts: Crude Inventories @ 10:30. Fed Speakers: Jefferson @ 11:00, Collins @ 11:45, Cook @ 13:30. 10-Year Note Auction @ 13:00. 

Quick Tip: Fractals

One common rule in many trading strategies is to honor the trend from a higher time frame. If you’re day-trading a 5-minute chart, consider the 30-minute trend. If you’re swing trading a 60-minute chart, consider the daily trend. 

There is more to be gained from this multiple time frame analysis. 

Markets are fractal, meaning the price patterns on the chart repeat themselves in different time intervals. With this knowledge, here’s some ideas for gaining edge: 

1. Entries & Exits: You might be able to find or predict a price pattern on a different time interval for scaling in or out of...