Today’s Lesson: How to choose your trading asset.
More and more futures contracts are being released in micro size. This is great news. Not just for beginners or those with a modest account, but everyone. Why? Because now you can live “test” your trading strategies on different assets that you might not have traded prior.
Diversification is good. You should do it. The question becomes WHICH other contracts should you trade. Here’s a quick look at filtering for candidates:
For Thu 210923 (Plenty can change by the open, be aware.)
Globex Review: AWESOME Globex session… the breakout from the CPL @ 4388.50 ran 32 points to the next level. The reversal @ 4420.50 ran for 19 points so far and is still live.
Day Session Analysis: Sentiment remains bullish. STATS mostly SHORT. I know, this is a hard pill to swallow but EDGE here doesn’t mean direction per se, it means those trades have historically performed better, trade either direction. Thursday (both sessions combined) garnered ONLY 4% of all the gains over the past 5 years in dollars. Breakouts (95%) crush Reversals (5%). Consider not trading Volume Profile. Trading ES/CL/GC using BB Rev with new filters. Looking to ladder into SPXW credit spreads for tomorrow’s expiration. Possible ITM spreads as well.
S&P 500 Futures CPL: 4379/4388.50. We’re trading ABOVE the CPL (short edge below, long edge above) and ABOVE the equilibrium 4371.25/4183 (open below = short edge, open above = long edge).
The World Index: (+100/-100) REMAINS +36 in a bullish-leaning mixed world (short edge).
Catalysts: Jobless Claims @ 8:30. PMI Composite Flash @ 9:45. Evergrande looks under control.
Trends: 60 min UP, daily UP now moving toward a wedge (short edge)
High outside day: Win/Stop% about the same, shorts delivered 20% more profit. Opening +0.62% (short edge). $TRIN XMA stable at 1.06 (long term outlook: stay long).
Globex: The range of 39 (possibly wider by the open) suggests a day session range around 52 points on a RISING ATR of 54.51. Prior forecast around 65 points, actual 50.
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