Results of Monday’s Best S&P Futures Turning Points: There was a typo on the short yesterday, well below price. The long didn’t trigger.
Today’s Best S&P Futures Turning Points (consider wider stops and less size in fast moving markets):
Buy 4364.75 stop 4360.75. Short 4498.00 stop 4502.25.
The World Index: (+100/-100) drops from +21 to +7 in a world of continuing mixed sentiment and low volatility.
Catalysts: CPI (watch Core) @ 8:30. Fed’s Barr @ 10:00. Fed’s Goolsbee @ 12:45.
Quick Tip: Big Picture
What’s your Big Picture? The correct answer depends on your time horizon (intended holding period) and trading chart time interval.
If you’re a day trader using a 5 or 10-minute chart, you’d be out by the end of the day and watching the behavior of the 30 or 60-minute chart.
If you’re a swing trader using a 60-minute chart, you’d be out in a several days or weeks and watching the Daily chart.
If you’re a position trader using a Daily chart, you’d be holding long term and watching the Weekly chart.
Adding in any other time intervals is likely too much information and may confuse you. Common knowledge using Technical Analysis suggests a higher time frame of between 4 and 6 times the trading chart. Double-check your trade plan and keep it simple, but definitely pay attention.
P.S. Feel free to share this newsletter with your trading buddies.