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Wednesday’s Best S&P Turning Points Results: Suggested reversals were delayed until the FOMC announcement, and none were triggered. Watch the recording of the FOMC LIVE trading session here (comes down Sunday Nov 6th @ midnight).
Today’s Best S&P Turning Points (consider wider stops and less size in fast moving markets):
Short 3843.25 stop 3849.00. Buy 3674.00 stop 3668.25
The World Sentiment Index: (+100/-100) PLUMMETS from +7 to -50 with most major world markets bearish. Historically the market closes down from the open 56% of the time.
Catalysts: Jobless Claims, International Trade, Productivity & Costs @ 8:30. Factory Orders & ISM Services Index @ 10:00. Higher interest rates are coming. Risk off. Dollar up.
Quick Tip: Flexibility
Directional traders use a confluence of evidence to make the long/short decision. They use probabilities gleaned from hard evidence and experience.
Yet price surprises us frequently. Yesterday’s FOMC price action is a good example. Up 67.50 points in 30 minutes, down 138 points from there. This volatility is not uncommon for this catalyst.
The key to success is being flexible. We research and consider all the evidence, decide, then see we were wrong.
There are three reactions you can have. One, be stubborn and stick with your original direction. Two, stop out the trade and move on. Three, change your mind and reverse the position.
The flexible trader can comfortably change. Not easy for some but proven by many. I was told the great investor George Soros wrote in his book about a trade he took in the Japanese Yen. It ended up a monster winner. His first entry was short based on his analysis. It failed quickly so he doubled his size and went long. Just like that!
We are all going to be wrong or mistaken at times. The key to success in anything, not just trading, is recognizing and changing to what is working.
Trade Fearlessly,
Mike Siewruk
P.S. We've re-opened membership enrollment with a hefty discount. Check it out here!
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