Trade Aptitude

Results of Friday’s Best S&P Futures Turning Points: Shorting 4615.00 caught the high of the session (again) and ran for 26.25 points. Feel better about the win by donating a slice to my preferred charity, the Alzheimer’s Association. Click here.

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

Buy 4569.00 stop 4564.25. Short 4628.50 stop 4632.75. 

The World Sentiment Index: (+100/-100) rises from +21 to +36. 

Catalysts: Chicago PMI @ 9:45.  

Quick Tip: Fast Moves vs. Melt Ups

Friday’s reversal is a great example of the counter-intuitive nature of trading. 

Price was moving up quickly and your signal was to sell short. The parabolic move is better seen on a time-based chart (our trading chart above is a 2-point range bar). Staring at that strong bullish move, joining the trend probably felt like the better decision. 

Not so. Our evidence shows that fast moves stop and reverse more often than slow, steady melt-ups. However, once a persistent trend is in play it’s better to pass on the reversals and take the breakouts. 

Tired of trading alone?  Join our team, learn several strategies, and trade live with us daily.  Money back if you’re not blown away! Click here for details. 

Trade Fearlessly,

Mike Siewruk