Results of Thursday’s Best S&P Turning Points: Shorting 4012.75 ran for 64 points to the buy at 3948.75 which bounced and ran for 10 points. Read the Quick Tip for a discussion on the short.
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Buy 3892.50 stop 3887.50. Short 3999.00 stop 4004.75.
The World Sentiment Index: (+100/-100) DUMPS from -36 to -86 with all major world markets very bearish on higher volatility. S&P Futures are currently bucking that trend near flat. Historically the close was higher than the open 58% of the time.
Catalysts: Employment Report @ 8:30. Treasury Statement @ 14:00. Banking sector plummets on SVB scare, concerns abound on a bigger problem.
Quick Tip: Fine Tuning
Yesterday’s short volume level was a tricky trade to report. If you followed the suggested stop you stopped out, only to see the trade run 64 points. If you gave it some extra room, as is suggested for faster markets, you sold the top then caught a 10-point bounce at the suggested buy level. If you chose the tighter stop you had two more opportunities to enter the trade without stopping out.
These alternatives represent rules you should have in your trade plan. Do you adjust your stop for volatile markets? Do you size down and accept the same dollar risk? Do you allow for re-entries?
One of our strategies is intraday trend. Having stopped out of the reversal you could have easily joined the trend with the alternative strategy. That’s one of the benefits of trading multiple strategies. You have an abundance of choices. No FOMO. You can align your trades with the current market conditions.
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