Trade Aptitude

Results of Friday’s Best S&P Futures Turning Points: The trade idea never triggered. 

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

Buy 5073.00 stop 5068.50. Short 5117.50 stop 5121.00.

The World Index: (+100/-100) drops from +38 to -25 with most major world markets neutral to modestly Bearish on less volatility.  

Catalysts: New Home Sales @ 10:00. 

Quick Tip: Bubbles

Warren Buffett is famous for his annual letter to shareholders. If you haven’t read one you should know that he’s a great writer and borderline humorist. 

Since we’re at all-time highs and the AI craze is bringing out the word “bubble” I want to share some Buffett on that topic with you. 

Feb. 25, 2012 “Over the past 15 years, both Internet stocks and houses have demonstrated the extraordinary excesses that can be created by combining an initially sensible thesis with well-publicized rising prices. In these bubbles, an army of originally skeptical investors succumbed to the ‘proof’ delivered by the market, and the pool of buyers—for a time—expanded sufficiently to keep the bandwagon rolling. But bubbles blown large enough inevitably pop. And then the old proverb is confirmed once again: ‘What the wise man does in the beginning, the fool does in the end.’”

Not being a long-term investor, I started thinking how I might apply the old proverb to my day and swing trading. The answer was an exit technique I use, but not nearly enough: The parabolic move (extended range bar/candle). Maybe I’ll rename it the Buffett Exit. 

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Trade Fearlessly,

Mike Siewruk

P.S. Forward this blog to your trading buddies. Share in the wealth!