Trade Aptitude

Thursday’s Best S&P Turning Points Results: The suggested buy level ran for 46.25 points MFE and 39.50 at the close. How much did you get? 

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

Short 4018.50 stop 4024.25. Buy 3947.00 stop 3943.25.

Globex View: Range-bound until Euro Open and firmly UP now trading above yesterday’s day session high but within the prior Globex.  A breakout above 3990 gives you 18.50 points to the suggested short. 

The World Sentiment Index: (+100/-100) JUMPS from -50 to +21 with Asia lagging and the western world bullish.  Historically price closes HIGHER than the open 55% of the time. 

Catalysts: Existing Home Sales @ 10:00. Bullard is hawkish. Mortgage rates drop.  

Quick Tip: More on Exits

This blog could be on exits almost every day. They are the most important trading decision you’ll make (once you pick your asset). 

Yesterday’s buy level was perfect, finding the day session low and only going 2.50-points against. Risking 4.50 points you had numerous exits available. Scaling out of multiple contracts was ideal.

Here’s one we haven’t talked about: Wide Range Candles. If price moves aggressively in near parabolic fashion that’s a great target. You’ll see it consolidate or reverse afterward many times. Those exits offered 15, 27 and 37 points respectively. 

You should plan your exits before the trade BUT be flexible to changing market conditions during the trade. The key is to NOT concern yourself with what you missed. That’s called Outcome Bias and it will have you second-guessing your rules and decisions daily. 

Trade Fearlessly,

Mike Siewruk

P.S. If your strategies have proven edge and your results are spotty then you need to change your behavior. Click to learn how.