Trade Aptitude

Tuesday’s Best S&P Turning Points Results: Price melted up and found no sellers at our suggested short level. 

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

Short 4069.50 stop 4075.25. Buy 3997.00 stop 3994.00 

Globex View: Narrow, breaking out from yesterday’s high, waiting on a big day of econ news.    

The World Sentiment Index: (+100/-100) EASES UP from zero to +29 in a world of subtle bullishness and low volatility.  Historically price closes higher than the open 55% of the time.  

Catalysts: Durable Goods & Jobless Claims @ 8:30. PMI Flash @ 9:45. New Home Sales & Consumer Sentiment @ 10:00. EIA Petroleum Status Report @ 10:30. FOMC Minutes @ 14:00. 

Quick Tip: Turkey Trade 

Thanksgiving is not known for gift giving but any time is a good time to give a gift (and receive one so pass this on). 

The market historically rallies over this holiday weekend and all the way through to the new year. The stat is around 80% of the time and the gain is around 3%. Subscribe to The Stock Traders Almanac for plenty more details on this trade and other cool seasonal opportunities. 

Like our Mortgage Payment Trade, using call options on the indexes will limit your risk and generate a much better rate of return than simply buying index ETFs.

You could lower your outlay even more by making it a debit spread (limiting your gain as well). Or get aggressive and sell a credit spread below to pay for some (maybe all) of the long calls or debit spread. I’m sure there are other slick ways to option in this but those are a few ideas to research. 

Enjoy your holiday!

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.