Abundance Mindset by Trade Aptitude
Friday’s results: Neither trade idea triggered and they remain on the chart today.
Today’s Best S&P Futures Turning Points: Buy 6017.25 stop 6012.25. Short 6013.00 stop 6018.00 if price retraces up from below.
The World Index: (+100/-100) jumps from -7 to +14 with most major world markets mildly Bullish on low volatility.
Catalysts: S&P Global MFG PMI Final @ 9:45. ISM MFG PMI & Prices @ 10:00. Fed’s Waller @ 15:15 and Williams @ 16:30.
Quick Tip: Abundance Mindset
You probably noticed that the Turning Points shared here frequently don’t trigger. Sometimes a few days can go by without a trade.
You may be thinking, “This is not enough action for me.”
On the contrary, this strategy provides far more setups than are freely shared, we’re just trying to get acquainted! Add in the reversal and momentum strategies and there are dozens of opportunities every day in our live futures...
Confront Reality
Yesterday’s results: No suggestions offered.
Today’s Best S&P Futures Turning Points: Buy 6017.25 stop 6012.25. Short 6013.00 stop 6018.00 if price retraces up from below.
The World Index: (+100/-100) jumps -7 to +21 with sentiment mixed on low volatility.
Catalysts: No known catalysts today.
Quick Tip: Confront Reality
How is your trading going? That’s a question you should be asking yourself on a regular basis. Think hard, be critical, answer honestly. And don’t worry about talking to yourself, we all learned that it’s OK during Covid lockdown.
What you’ll find when you question your results critically are some trailheads for improvement. It might be as subtle as the quality of your record keeping or the consistency of your pre-trading routine.
Or it could be as important as the quality of your strategies. Are they firing on all cylinders? Are you in a drawdown, or close to one?...
Big Picture by Trade Aptitude
Yesterday’s results: Shorting 6035.50 stopped out. Buying 5988.00 offered 8.25 points before reversing.
Today’s Best S&P Futures Turning Points: No great levels today.
The World Index: (+100/-100) falls from +21 to -29 with most major world markets mildly Bearish on low volatility. S&P futures slightly higher.
Catalysts: S&P Home Price Index @ 9:00. Consumer Confidence, New Home Sales & Richmond MFG Index @ 10:00. FOMC Minutes @ 14:00.
Quick Tip: Big Picture
Regardless of your trading timeframe, daily, swing, or position, using a “big picture” analysis to your entry decision adds edge. It’s the higher timeframe.
Traditional technical analysis suggests that a multiple of 3 to 6 is appropriate. For example, if you’re a day trader using a 5-minute chart for your entry, aligning with the trend of the 15- or 30-minute chart will help. A swing trader using...
Consistency by Trade Aptitude
Yesterday’s results: Neither trade idea triggered.
Today’s Best S&P Futures Turning Points: Buy 5988.00 stop 5982.75. Short 6035.00 stop 6038.25.
The World Index: (+100/-100) jumps from zero to +21 with world markets neutral and the US firmly Bullish.
Catalysts: Dallas Fed MFG Index @ 10:30. The market welcomes Bessent as Treasury Secretary.
Quick Tip: Consistency
Here’s an important quote from Dr. Brett Steenbarger, author of many books on trader psychology and an accomplished S&P futures day trader.
“You are most likely to become consistent IN your trading if you are consistent in working ON your trading.”
How? Preparation and review. Sports teams do this. Prepare for the opponent, play the game, watch the game videos
Are you preparing enough for your trading session? Are you assessing current market conditions and adjusting your expectations to what is probable?
Steenbarger...
New Paradigm by Trade Aptitude
Yesterday’s results: Buying 5889.75 was only good for a 5-point scalp. The short idea didn’t trigger.
Today’s Best S&P Futures Turning Points: Buy 5909.50 stop 5904.75. Short 5975.50 stop 5981.25.
The World Index: (+100/-100) drops from +29 to zero with sentiment mixed and volatility low.
Catalysts: Jobless Claims & Philly Fed MFG Index @ 8:30. Fed’s Hammack @ 8:45, Goolsbee @ 12:25, Hammack @ 12:30, Barr @ 16:40. Existing Home Sales @ 10:00.
Quick Tip: New Paradigm
What are your beliefs about successful trading? How have you been taught?
Technical analysis? – “All I need is a good indicator or two to be a winner, history repeats itself enough for me.” That’s OK.
Fundamental analysis? – “Indicators are lagging, I want to study and KNOW the asset I’m trading to predict the future with confidence.” That’s OK too.
Chart analysis? ...
Art in Exits by Trade Aptitude
Yesterday’s results: Buying 5895.50 picked the bottom of the session and ran for 37.50 points before closing the day +25.50. 
The short idea didn’t trigger.
Today’s Best S&P Futures Turning Points: Short 5975.50 stop 5981.25. No long suggestion today.
The World Index: (+100/-100) drops from -14 to -21 with Asia mildly Bullish and the west firmly Bearish.
Catalysts: Building Permits/Housing Starts @ 8:30. Fed’s Schmid @ 13:10. Ukraine/Russia war escalation.
Quick Tip: Art in Exits
Dozens of different methods of trading can be profitable. If you doubt this statement you need to read any of Jack Schwager’s “Market Wizards” books.
In each book he interviews top traders from around the world. Dozens of them. What you’ll find is that almost every trader has a different take on how to trade. Some use technical indicators successfully. Others focus on algorithms. Still...
Tuning Your Watch List by Trade Aptitude
Yesterday’s results: : No trades triggered.
Today’s Best S&P Futures Turning Points: Buy 5936.25 stop 5931.25. Short 6002.75 stop 6007.75.
The World Index: (+100/-100) drops from -7 to -21 with all major world markets neutral to Bearish on low volatility.
Catalysts: Retail Sales, Empire State MFG Index, Import Prices @ 8:30. Fed’s Collins @ 9:00, Williams @ 13:15. Industrial Production @ 9:15. Business Inventories @ 10:00.
Quick Tip: Tuning Your Watch List
Stock and option traders have a challenge that futures and Forex traders don’t have. How to winnow down your trading candidates from nearly 9000 stocks.
There are some common filters that are easy to implement like price and volume. Picking stocks that are between $10 and $50 reduces the selection to 2200. Add in average volume over 1 million daily and you’re down to 562.
You can keep adding filters to get to a manageable number,...
Trading in the 5th Dimension by Trade Aptitude
Yesterday’s results: Buying 5996.50 stopped out. Shorting the retracement to 5993.50 offered a 6.75-point scalp.
Today’s Best S&P Futures Turning Points: Short 6032.75 stop 6037.75. Buy 6037.50 stop 6034.75 if price retraces down from above (filtered out during CPI release).
The World Index: (+100/-100) soars from -71 to zero with the major world markets mixed on falling volatility.
Catalysts: CPI @ 8:30. FOMC speakers; Kashkari @ 8:30, Logan @ 9:45, Musalem @ 13:00, Schmid @ 13:30. Federal Budget Balance @ 14:00.
Quick Tip: Trading in the 5th Dimension
You could argue that chart trading is 3-dimensional. You’re analyzing price, volume, and time on a chart.
If you add fundamental analysis to your plan that would be your 4th dimension, and it would very likely improve your performance. Knowing more about the assets, sectors, and economy can only help you.
There is a...
Diversify Re-Defined
Yesterday’s results: No trades triggered.
Today’s Best S&P Futures Turning Points: Buy 5996.50 stop 5992.75. Short 5993.50 stop 5997.25 if price retraces up from below.
The World Index: (+100/-100) plummets from +36 to -71 with all major world markets Bearish on rising volatility.
Catalysts: Fed Speakers today: Waller @ 10:00, Barkin @ 10:15, Kashkari @ 14:00, Harker @ 17:00, Barkin @ 17:30.
Quick Tip: Diversify Re-Defined
One of our teams day-trades in the futures market. There is plenty of focus on the S&P 500 contract. Yesterday it traded in a relatively narrow range (31.75 points) and closed down 8 points from Friday. The other indexes weren’t very different. Ho hum.
Our other team swing trades options. You might think that given the lack of movement in the indexes that the options portfolio would be flat too. It wasn’t. In fact, there were specific options that moved substantially. My...
Parabolic Moves by Trade Aptitude
Yesterday’s results: No trades triggered. The suggestions stay on the chart.
Today’s Best S&P Futures Turning Points: Buy 5936.25 stop 5931.25. Short 5932.00 stop 5937.00 if price retraces back from below.
The World Index: (+100/-100) plummets from +50 to -50 with all major world markets, except Tokyo, Bearish.
Catalysts: UofM Consumer Sentiment & Inflation Expectations @ 10:00. Fed’s Bowman @ 11:00, Musalem @ 14:30.
Quick Tip: Parabolic Moves
Price generally moves in impulses and corrections in both directions. Three steps forward, one back. The trend continues until price moves sideways in a range. Eventually a new trend starts. Look at plenty of charts and notice this repetitive pattern.
Sometimes the trend portion of the pattern doesn’t move in impulses and corrections. It’s a smooth series of vertical candles, a parabolic move. Look at the...