Results of Thursday's Best S&P Turning Points: Neither trade idea triggered. 

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

Short 4002.25 stop 4006.50. Buy 3937.00 stop 3933.25. 

Globex View: Trading above yesterday’s high expecting a melting up or range bound day unless the catalysts are negative.  

The World Sentiment Index: (+100/-100) JUMPS from to +50 with most major world markets bullish. Historically price will close below the open 54% of the time. 

Catalysts: PPI @ 8:30. Consumer Sentiment & Inflation Expectations @ 10:00.  

Quick Tip: DeMark’s Advice

If you haven’t heard of Thomas DeMark, he is arguably one of the most influential technical traders on the planet. His client list is beyond impressive (Goldman, Citi, Tudor-Jones). He has authored dozens of proprietary technical indicators for himself and his...

Results of Wednesday's Best S&P Turning Points: Neither trade idea triggered. 

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

Short 4002.25 stop 4006.50. Buy 3862.75 stop 3857.00.

Globex View: After breaching yesterday’s low, price is making new Globex highs (7:00 ET) with all index futures showing modest gains. 

The World Sentiment Index: (+100/-100) JUMPS from -57 to zero in a world of mixed sentiment. No historical edge.   

Catalysts: Jobless Claims @ 8:30. Not much else. 

Quick Tip: Mistakes

Day trading is my favorite style. I like to see short term results. It does require attention and focus, though. We can make mistakes and need a corrective plan for when that occurs. 

Trading the S&P futures yesterday, we started with a 26.25-point winner. Followed by an 11.50-point winner. Then an 18-point loser. Not unusual for a strategy...

Results of Tuesday’s Best S&P Turning Points: The buy @ 3963.00 stopped out. 

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

Short 4002.25 stop 4006.50. Buy 3922.50 stop 3917.75.  

Globex View: Inside, narrow range trending down. Looking for price to melt down again today but mindful that a relief rally is just as likely. 

The World Sentiment Index: (+100/-100) DUMPS from -14 to -57 with all major world markets bearish. Historically price closes LOWER than the open 56% of the time.   

Catalysts: Productivity & Costs @ 8:30. EIA Petroleum Status Report @ 10:30. Gloomy 2023 predictions from big Wall Street CEOs. 

Quick Tip: Confluence with $TICK

Regardless of your day trading strategy ruleset, you’ll benefit from confluence with other information for both entries and exits. We trade several strategies in our trading...

Quick Tip: Weather Report 

Markets are like the weather. Calm winds and sunny days turn into thunderstorms or worse. Gentle trending days in the market get upset by catalysts that send volatility soaring and price action looking like an ECG. 

Some catalysts are scheduled, like the employment report on Friday that plunged the indexes. Others pop up without warning like a midday comment from a Fed Governor at a benign conference. Back in the day it was a Trump tweet. 

As day traders we certainly need to be aware of all the scheduled (potential) catalysts. We also need to accept that sometimes price will do very unexpected things and we won’t know why. Finding out why is a waste of precious time. Having a plan of action when price action is unacceptable for your strategy is best. 

In our trade room we capture plenty of data about every trade setup across multiple strategies. Catalysts included. This data is analyzed to update...

Quick Tip: Novel Exits Part 2

Yesterday I shared the idea that a good exit may be an opposing signal from a different strategy that you use and know has edge. Reprinted here in italics. 

Let’s say you’re profitably long using a trend strategy and your reversal strategy is signaling short. You have choices, which is better than none.

1. Ignore the reversal signal. 

2. Exit your entire position.

3. Scale out of your position.

Scaling out is a good choice. You’re banking profit and staying in the primary trend. The key is selecting the strategies you’re using. They all need "edge." 

One of our trading team members offered further choices that expand this, and I wanted to share them with you while the idea is fresh in your mind. 

4. Exit (or scale out) at the reversal signal, anticipating re-entering wholly or partially on a pullback. After all, you expect a reaction to the reversal...

Quick Tip: Be Different

“If you set out to be successful at something and you don’t know how to do it, look around at what everybody else is doing, and don’t do that…” Earl Nightingale

This is especially true with trading. If everyone traded the same way there would be no counter parties. We need plenty of different styles and opposing viewpoints for the markets to exist. 

If you’re still struggling it’s a good idea to stop trading live money and start looking at alternative trading styles. Be open minded. I’ve met too many traders over the past 22 years who are fixed on one way to trade because that’s what they bought into. 

Think of your prior investment in trading education as a trade. Some winners, some losers. 

I’ve personally invested a small fortune in trading education. And here’s a surprise, I still do. I invest in myself...

Monday’s Best S&P Turning Points Results: The suggested buy at 3987.00 ran for 17 points with 2-points of adverse move. 

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

Short 4033.50 stop 4036.75. Buy 3922.50 stop 3917.75. 

Globex View: Inside, tight range session. 

The World Sentiment Index: (+100/-100) JUMPS from -64 to +50 with most major world markets bullish.  Historically price closes LOWER than the open 54% of the time.   

Catalysts: Home Price Index @ 9:00. Consumer Confidence @ 10:00. Chinese markets SOAR on looser Covid restrictions. Dollar lags. Waiting on GDP, Powell tomorrow.

Quick Tip: Solo vs. Multi-Strat

If you read this blog daily you know that our team trades live daily in a multi-strat environment. Focusing on multiple strategies is not for everyone. In fact, few of our team trade all the strategies. 

So why have...

Tuesday’s Best S&P Turning Points Results: Price melted up and found no sellers at our suggested short level. 

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

Short 4069.50 stop 4075.25. Buy 3997.00 stop 3994.00 

Globex View: Narrow, breaking out from yesterday’s high, waiting on a big day of econ news.    

The World Sentiment Index: (+100/-100) EASES UP from zero to +29 in a world of subtle bullishness and low volatility.  Historically price closes higher than the open 55% of the time.  

Catalysts: Durable Goods & Jobless Claims @ 8:30. PMI Flash @ 9:45. New Home Sales & Consumer Sentiment @ 10:00. EIA Petroleum Status Report @ 10:30. FOMC Minutes @ 14:00. 

Quick Tip: Turkey Trade 

Thanksgiving is not known for gift giving but any time is a good time to give a gift (and receive one so pass this on). 

The market...

Friday’s Best S&P Turning Points Results: The suggested buy level ran for 35.75 points MFE and 26.50 at the close. Maybe. 

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

Short 3993.00 stop 3998.75. Buy 3922.50 stop 3917.75. 

Globex View: Trending down from the open still inside Friday’s range.  A breakout below 3942.50 gives you 20.00 points to the suggested buy. 

The World Sentiment Index: (+100/-100) DROPS from +21 to -36 in a bearish leaning world.  Historically price closes HIGHER than the open 56% of the time. 

Catalysts: Nothing on the economic calendar. China locks down again leading the Global selling.   

Quick Tip: Finesse your Stop

The trade ideas presented here are based on volume-at-price setups that have been perfected over thousands of trades. Suggested stop placement is always offered with the caveat...

Thursday’s Best S&P Turning Points Results: The suggested buy level ran for 46.25 points MFE and 39.50 at the close. How much did you get? 

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

Short 4018.50 stop 4024.25. Buy 3947.00 stop 3943.25.

Globex View: Range-bound until Euro Open and firmly UP now trading above yesterday’s day session high but within the prior Globex.  A breakout above 3990 gives you 18.50 points to the suggested short. 

The World Sentiment Index: (+100/-100) JUMPS from -50 to +21 with Asia lagging and the western world bullish.  Historically price closes HIGHER than the open 55% of the time. 

Catalysts: Existing Home Sales @ 10:00. Bullard is hawkish. Mortgage rates drop.  

Quick Tip: More on Exits

This blog could be on exits almost every day. They are the most important trading decision you’ll make...