Trade Aptitude

Results of Monday’s Best S&P Futures Turning Points: Neither trade triggered, levels stay on the chart.

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

Buy 4870.50 stop 4866.25. Short 4867.00 stop 4871.25 if price falls below and retraces back. 

The World Index: (+100/-100) remains at +7 in a world of lower volatility and mixed sentiment. 

Catalysts: Richmond MFG Index @ 10:00. China is looking at a stock market rescue package. 

Quick Tip: Market States

Trading in harmony with the bigger picture trend is one of the golden rules. That’s only half your concern, though. The other variable you should consider is volatility. 

Combining trend and volatility you arrive at the 4 Market States: 

Trend with low volatility.

Trend with high volatility.

Ranging with low volatility.

Ranging with high volatility. 

Few, if any, strategies work well in all the Market States. If you’re struggling to get consistency with a particular strategy, review the Market States during all your prior trades. This is easy enough using a visual process on the charts. You might find a quick fix. 

Add to your documentation process Market State identification. Going forward you won’t have to invest the time back filling the data. 

Of course, ideally you’ll want to master multiple strategies that are tuned for Market State. Then you’ll have the ultimate level of abundance. 

For example, yesterday’s Market State was ranging with low volatility. On our team, the focus was on reversal trades as opposed to trends. That paid off. 

Tired of trading alone? Our team day-trades multiple strategies with edge in a live online environment. Join us, learn the strategies, and trade live with us daily for 30 days. Money back if you’re not blown away!

Trade Fearlessly,

Mike Siewruk

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