Monday’s Best S&P Turning Points Results: Neither suggested level triggered.
Quick Tip: Which Market?
The word “market” can mean asset. Stock market. Oil market. Gold market.
It can also mean “condition.” Trending market. Ranging market.
Your strategy rules should be customized to a market condition. No strategy performs well in all market conditions.
It’s commonly said that markets trend around 30% of the time. That leaves 70% for range-bound conditions.
Trending markets offer larger profit opportunities. When you catch a trend it can persist for quite some time. However, you’ll have more losing trades when whipsaws occur.
Range-bound markets offer more winning opportunities. As price moves back and forth from support to resistance you can capture more but smaller winning trades.
Which do you prefer? This is important because your trading style needs to resonate with your personality. You should like it. It should be play not work.
The best way I’ve discovered to find your preference is to trade each style for a while. Do it in simulation mode. Do it through the different market conditions. This will take time but the result, finding your style, is the starting point of a successful trading career.
Bonus: You may find you enjoy both. Now your challenge becomes recognizing the change in market conditions. That should be fun, too. If not pick your favorite strategy and just trade that.
The World Sentiment Index: (+100/-100) DROPS from -58 to -75 with all major world markets bearish except Shanghai (flat). Historically higher closes from the open occurred 54% of the time with 18% greater gains than losses.
Catalysts: Nothing on the economic calendar of importance. Waiting on Wednesday’s FOMC Minutes and Thursday’s CPI.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Short 3713.50 stop 3719.25.
Buy 3577.25 stop 3573.50, if that fails buy 3568.75 stop 3565.75.
P.S. Multiple strategies, software tools, teammates, and coaching. Learn why you should join our team here. For a personal consultation to assess fit (without selling) email me for an appointment: mike@thedailymarketforecast.