Trade Aptitude

Results of Wednesday’s Best S&P Turning Points: Shorting 4147.00 stopped out in a bullish reaction to FOMC commentary. 

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

Buy 4081.00 stop 4076.00. Short 4193.50 stop 4198.75. 

The World Sentiment Index: (+100/-100) EASES from +29 to +21 with Asia soft and the west mildly bullish. Historically it’s a coin toss on direction. 

Catalysts: Jobless Claims and Productivity & Costs @ 8:30. Factory Orders @ 10:00. 

Quick Tip: Higher Time Intervals 

One common rule in trading is to trade in the same direction as a higher time interval. If you’re a day trader using 5-minute candles your higher time interval would be 20 or 30 minutes (a multiple of 4 or 5). 

In our trend trading strategy this rule works fine with the S&P. The documented results of over 1000 trades in various market conditions verifies the rule. 

Not so with oil. This was a surprising find that tells you not all assets trade the same way. Before you assume what you’re hearing or know is applicable to all assets, take the time to perform some deep research. 

If you missed our Live Trading the FOMC close yesterday, the recording is up. Click here. Great lessons included. But do it today because there are some attractive offers to join  our team that expire tonight at midnight. 

Trade Fearlessly,

Mike Siewruk