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

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 4543.75 stop 4548.25.

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

Catalysts: Nothing on the economic calendar. Earnings season slows. Waiting on CPI. 

Quick Tip: Lose Enough 

A popular formula for determining your risk on any given trade is the Fixed Percentage rule. You pick a percentage, usually 2% or less of your trading account, and that is the most you can risk on each trade.  

It works great because as your account grows your risk can increase giving you the opportunity for greater reward. Conversely, if you’re in a drawdown you will be risking less. 

While that formula is fine for the math side of the equation,...

Results of Thursday’s Best S&P Futures Turning Points: Buying 4512.00 ran for 14.00 points. 

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 4598.50 stop 4605.50. 

The World Sentiment Index: (+100/-100) jumps from -46 to +21 in a world of mixed sentiment and low volatility. 

Catalysts: Employment Report @ 8:30. AAPL disappoints. 

Quick Tip: Quick Tip: How to Diversify   

The two primary methods to diversify your day trading are by asset or by strategy. 

In other words, you can trade one strategy across many assets or one asset across many strategies. Neither is better for everyone. It’s a matter of personal style. 

I recall one excellent equities day trader I worked with who only traded ONE stock (at the time it was Intel, INTC). He claimed his focus on one stock...

Results of Wednesday’s Best S&P Futures Turning Points: Buying 4551.75 only offered a 6.50-point bounce. The breakout was the better trade, joining the trend, running for 16.25 points to the next level where price formed the bottom of the session. :-)

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

Buy 4512.00 stop 4507.00. Short 4598.50 stop 4605.50. 

The World Sentiment Index: (+100/-100) eases up from -86 to -46 with most major markets Bearish but less so than yesterday. 

Catalysts: Jobless Claims @ 8:30. Final Services PMI @ 9:45. ISM Services PMI & Factory Orders @ 10:00. 

Quick Tip: Small Account Trading

Having a small account shouldn’t prevent you from swing trading stocks. You won’t be trading AAPL or TSLA or NVDA. Even their options can be expensive for a small account. 

So how do you find stocks you can afford to...

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

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

Buy 4551.75 stop 4547.25. Short 4598.50 stop 4605.50. 

The World Sentiment Index: (+100/-100) drops from -36 to -86 with all major world markets very Bearish. 

Catalysts: ADP Payrolls @ 8:15. Crude Inventories @ 10:30. US Debt downgraded.  

Quick Tip: When to Follow

As Thomas Paine said, “Lead, follow, or get out of the way.” How does this apply to trading? 

From a stock trading perspective “leading” implies one has performed exhaustive research and has uncovered a stock that has positive fundamental, technical, and marketplace metrics. The analyst knows nearly as much as the executives running the company about its prospects, but not all...

Results of Monday’s Best S&P Futures Turning Points: Neither trade suggestion triggered in a narrow range day. 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 4569.00 stop 4564.25. Short 4628.50 stop 4632.75. 

The World Sentiment Index: (+100/-100) dumps from +36 to -36 with most major world markets leaning Bearish on low volatility. 

Catalysts: ISM MFG PMI & JOLTS @ 10:00. 

Quick Tip: Think Big

Without goals people drift through life never achieving their true potential. This is not an opinion but documented fact from numerous psychological studies. No goals? Little progress. 

Small and “reasonable” goals are typical for most people if they bother to set goals at all. Yet, they require the same attention as big and “audacious” goals. Really. But there is a difference in the path. The...

Results of Friday’s Best S&P Futures Turning Points: Shorting 4615.00 caught the high of the session (again) and ran for 26.25 points. Feel better about the 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 4569.00 stop 4564.25. Short 4628.50 stop 4632.75. 

The World Sentiment Index: (+100/-100) rises from +21 to +36. 

Catalysts: Chicago PMI @ 9:45.  

Quick Tip: Fast Moves vs. Melt Ups

Friday’s reversal is a great example of the counter-intuitive nature of trading. 

Price was moving up quickly and your signal was to sell short. The parabolic move is better seen on a time-based chart (our trading chart above is a 2-point range bar). Staring at that strong bullish move, joining the trend probably felt like the...

Results of Thursday’s Best S&P Futures Turning Points: Shorting 4631.50 caught the high of the session and ran for 41.50 points to the suggested buy at 4590.00, which stopped out. Feel good about your win by donating a slice to my favorite 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 4531.75 stop 4527.50. Short 4615.00 stop 4620.75. 

The World Sentiment Index: (+100/-100) drops from +50 to +21 in a world of mixed sentiment. 

Catalysts: PCE Price Index & Personal Income @ 8:30. UofM Consumer Sentiment (revised) @ 10:00. INTC surprises, risk back on. 

Quick Tip: Better Targets

Stops are so easy. Pick your risk number, determine position size, hit enter. 

Profit targets are trickier. 

If you ask yourself what would be the best thing to know before you enter a...

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

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

Buy 4590.00 stop 4584.25. Short 4631.50 stop 4637.00

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

Catalysts: GDP, Jobless Claims, International Trade, and Durable Goods @ 8:30. Pending Home Sales @ 10:00. Risk on with traders feeling rate hikes are nearing an end. META beats. 

Quick Tip: Newbies Only Part 9

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

If you were an actor you would not only memorize and practice your script, but you would listen to or watch a recording of your performance to hone your act. Repeatedly. Practice and review. This sequence is the formula for mastery. It...

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

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

Buy 4551.75 stop 4547.25. Short 4621.25 stop 4627.00 (caution during FOMC conference). 

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

Catalysts: New Home Sales @ 10:00. Crude Inventories @ 10:30. FOMC announcement @ 14:00 and press conference @ 14:30. Mixed results from Big Tech yesterday. 

Quick Tip: Newbies Only Part 8

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

Brokerage risk is real. Ask anyone who had money with FTX. Keeping your trading accounts with reputable brand name brokers regulated in the USA is the safest decision. If you’re...

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

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

Buy 4551.75 stop 4547.25. Short 4612.50 stop 4616.50. 

The World Sentiment Index: (+100/-100) jumps from +7 to +50 in a mostly Bullish world, especially Shanghai & H.K. 

Catalysts: Home Price Index @ 9:00. Consumer Confidence @ 10:00. MSFT & GOOG release earnings after the close. 

Quick Tip: Newbies Only Part 7

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

There are more risks in trading than the loss on any given trade. Here’s a couple to consider. 

Liquidity risk. You’re buying and selling. That means someone needs to be your counterparty at a fair price. The difference between the bid (buyers) and ask...