Results of Thursday’s Best S&P Futures Turning Points: The short at 5142.25 stopped out and the breakout buy at 5238.25 only offered a 5.50-point move before failing. 

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

Buy 5113.75 stop 5109.25. Short 5155.00 stop 5159.00 if price drops below and retraces to entry. 

The World Index: (+100/-100) jumps from -44 to +6 with the world markets mixed within low volatility. 

Catalysts: Non-Farm Payrolls @ 8:30. 

Quick Tip: All-Time High

What is your plan? Stay long, hedge, go flat, or short? 

Evidence from an analysis of stock market returns since 1926 done by Schroders.com might help: 

1. Of the 1,176 months since January 1926, the market was at an all-time high in 354 of them, 30% of the time.

2. 12-month returns following an all-time high being hit have been better than at...

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

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

Buy 5142.25 stop 5137.50 if price rises above and retraces to entry (breakout). Short 5138.25 stop 5143.00. 

The World Index: (+100/-100) plummets from +31 to -44 with most major world markets Bearish on rising volatility in Asia. 

Catalysts: Day Jobless Claims @ 8:30. Powell @ 10:00. Fed’s Mester @ 11:30.

Quick Tip: Ask Yourself

Earnings season is over. Generally, stocks that beat expectations will rise and vice versa. Your portfolio will likely have winners and losers. If all you look at is the total value you’re missing opportunity. 

You should be asking yourself how you’re going to manage each position. Being proactive and planning will get you the calm confidence to execute with no doubt. 

...

Results of Tuesday’s Best S&P Futures Turning Points: Buying 5097.00 stopped out. 

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

Buy 5046.75 stop 5042.75. Short 5138.25 stop 5143.00. 

The World Index: (+100/-100) inverts from -31 to +31 with most major world markets mildly Bullish on low volatility. 

Catalysts: ADP Employment Change @ 8:15. JOLTS Job Openings & Powell @ 10:00. Crude Oil Inventories @ 10:30. Fed’s Daly @ 12:00. Beige Book @ 14:00. 

Quick Tip: Day Trade Exits

We’ve all heard the advice to “let your winners run.” For swing and position trades that is good advice. For day trades, not necessarily.

Why not? Your day trade has a time stop. You’re out at the session close. While it’s possible to get a runner all day long and into the close, the likelihood is price will move in impulses and...

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

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

Buy 5097.00 stop 5092.25. Short 5138.25 stop 5143.00. 

The World Index: (+100/-100) drops from -19 to -31 with the major world markets leaning Bearish on very low volatility. 

Catalysts: Final Services PMI @ 9:45. ISM Services PMI @ 10:00. Fed’s Barr @ 12:00 & 15:30. 

Quick Tip: Change is Coming

Here’s a great quote from Market Wizard Ed Seykota, “The markets are the same now as they were 50 years ago because they keep changing – just like they did then.” Clever, huh? 

Lately it seems that every morning is a waiting game for price to break out of a narrow range. Trend attempts fail. Reversals get modest gains. 

What to do? 

1. Have abundance. The more strategies...

Results of Friday’s Best S&P Futures Turning Points: The short idea was filtered out during the 10:00 economic releases but worked well running 15 points. 

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

Buy 5097.00 stop 5092.25. Short 5093.00 stop 5097.75 if price drops below and retraces back to entry. 

The World Index: (+100/-100) drops from +13 to -19 with the major world markets mixed on very low volatility. 

Catalysts: Nothing on the economic calendar. 

Quick Tip: How You Feel

Looking at Friday’s chart you see that the short entry was filled with minimal adverse move and ran for a quick 15 points. Great way to start the trading day!

Except this occurred during an important economic news release. The volatility can be extreme and slippage both on entry and exit can ruin your result. 

Imagine, our team is trading...

Results of Monday’s Best S&P Futures Turning Points: : Buying 5173.00 filled in the Globex session last night running 14+ points and still open. 

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

Buy 5046.75 stop 5042.75. Short 5117.50 stop 5121.00.

The World Index: (+100/-100) jumps from -25 to +38 with all major world markets neutral to modestly Bullish. 

Catalysts: Durable Goods @ 8:30. Home Price Index @ 9:00. Fed’s Barr @ 9:05. Consumer Confidence & Richmond MFG Index @ 10:00. 

Quick Tip: Set/Forget 

One of the nice features of trading the levels from this newsletter is the set/forget entry available on the reversals. 

Yesterday’s buy at 5173.00 didn’t trigger until 12:55 AM ET. Depending on your time zone you may have been sleeping. Placing the order beforehand brought you a welcome “Good Morning!” if...

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...

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

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

Buy 5046.75 stop 5042.75. No great shorts today. 

The World Index: (+100/-100) soars from +6 to +69 with all major world markets (except India) firmly Bullish. 

Catalysts: Jobless Claims @ 8:30. Flash MFG/Services PMI @ 9:45. Existing Home Sales & Fed’s Jefferson @ 10:00. Crude Oil Inventories @ 11:00. NVDA sparks worldwide rally in equities. 

Quick Tip: Hybrid Trading

There isn’t only “one way” to trade successfully. There are countless strategies and methods that can be profitable. You need to find what resonates with your trading psychology, style, and risk tolerance. 

For example, consider two popular styles of trading: trend following and mean reversion. They both can be very profitable...

Results of Tuesday’s Best S&P Futures Turning Points: Buying 4972.75 only offered a 6.50-point bounce. 

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

Buy 4926.00 stop 4920.75. Short 5026.50 stop 5031.00.

The World Index: (+100/-100) inches up from zero to +6 in a world of mixed sentiment and rising volatility. 

Catalysts: Fed’s Bowman @ 13:00. FOMC Meeting Minutes @ 14:00. NVDA after the bell.

Quick Tip: Why 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 know how to trade them? 

1. Diversity. Markets change character. They’re either trending or not, volatile, or not. No single strategy works well in all those conditions. Having the choice...

Results of Friday’s Best S&P Futures Turning Points: Buying 5026.00 stopped out. Shorting 5022.50 on the retracement ran for 9.75 points. 

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

Buy 4972.75 stop 4969.25. Short 5026.50 stop 5031.00.

The World Index: (+100/-100) plummets from +67 to zero in a world of mixed sentiment and low volatility. 

Catalysts: Nothing important on the economic calendar 

Quick Tip: Smart Money

Who are your “Smart Money” Connections? 

Most traders don’t have even one, let alone many. 

For the longest time, I didn’t either. And now that I have many, I wouldn’t trade any other way. Following “Smart Money” trades is absolutely the best edge I’ve found in 25 years of trading. 

And I want to share this with you!

You’ll see all...