The Daily Market Forecast... Fast Price Action

Wednesday’s Results: The short @ 3860.50 was only good for a 9.50-point move (using the wider stop).

Quick Tip: Fast Price Action

Market conditions are dynamic. Volatility comes and goes. Your trade plan should have rules that are adjustable to these changes. 

Yesterday is a good example. Post-FOMC minutes release price became fast and volatile going just a couple of ticks beyond our normal stop (see chart). The level only stalled price and worked for 9.50 points favorable. But that’s better than stopping out by not acknowledging the character change in the market. 

Another rule you can use is to scale-in your position as price moves against you. It sounds like you’re adding to a loser but that’s not the case on entry. Price will whip around and saving a few points scaling in not only lessens your risk but adds to your profit targets. 

We’ll be covering many more of these “edges” in our new FREE mini class “Optimizing Multi-Strat Trading” on Sunday July 10th @ 5 PM ET. The class is limited to 100 traders and seats are filling up. Reserve yours now. 

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

Sell 3900.75 stop 3906.50. 

Buy 3834.50 stop 3829.75

Trade Fearlessly,

Mike Siewruk

P.S. With the Futures Globex session opening during Sunday’s free class, you could see some live trades. If not, at least you’ll see what a detailed Globex trade plan looks like. Register now.