Trade Aptitude

technical analysis Jan 05, 2024

Results of Thursday’s Best S&P Futures Turning Points: Neither suggested trade level triggered. 

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

Buy 4701.75 stop 4696.00. Short 4752.00 stop 4756.25.

The World Index: (+100/-100) dumps from +14 to -43 with most major world markets Bearish. 

Catalysts: Employment Situation @ 8:30. ISM Services PMI & Factory Orders @ 10:00. Fed’s Barkin speaks @ 13:30. 

Quick Tip: Volume Leads Price

For as complex and chaotic as the markets are, technical traders only have 3 variables to analyze. Price, volume, and time. Most technical traders agree that volume LEADS price. 

Price moving up with volume increasing is very bullish. It’s hard evidence that plenty of buying interest is happening. Conversely, price moving up with decreasing volume is not as bullish. 

Price moving down with volume increasing is very bearish. More hard evidence. Conversely, price moving down with decreasing volume is not as bearish. 

How do you use this data? Entries AND exits. 

If you’re a breakout trader and volume is surging at your entry that’s good news. If you’re a reversal trader and volume is decreasing where you’re ready to enter that’s good news. Confluence. 

Similarly, if you’re in a position and volume is decreasing (either direction) then scaling out and banking profit makes sense. 

There are many ways to look at volume: pure volume, averages, oscillators, bands, accumulation, and more. Invest some time finding what resonates with your strategies.

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Trade Fearlessly,

Mike Siewruk

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


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