Results of Wednesday’s Best S&P Futures Turning Points: No levels suggested. 

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

Buy 5238.00 stop 5232.25. Short 5233.00 stop 5238.75 if prices falls below and retraces to entry. 

The World Index: (+100/-100) jumps from -13 to +25 with most major world markets mildly Bullish with low volatility. 

Catalysts: PPI, Retail Sales & Jobless Claims @ 8:30. 

Quick Tip: Which Market? 

The word “market” can mean asset class: stock market, commodities market, currency market, etc. 

It can also mean “condition:” trending market, ranging market. 

Your strategy rules should be customized to a market condition. No strategy performs well in all market conditions. 

It’s commonly said that markets trend around 30% of the time. That leaves 70% for range-bound...

Results of Tuesday’s Best S&P Futures Turning Points: Buying 5183.00 picked the bottom of the session and ran 60+ points to the close. 

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

No qualified volume levels today. 

The World Index: (+100/-100) drops from +31 to -13 in a world of mixed sentiment and plunging volatility. 

Catalysts: Crude Oil Inventories @ 10:30. 30-year Bond Auction @ 13:01.

Quick Tip: ATR Exit

Yesterday’s buy was one of the best we’ve seen in years. It ran smoothly with a few pullbacks to form price pivots for a trailing stop that was never touched. 

One open trade management tool we have is the ATR extension. The black dotted line on the chart represents the 14-period daily average true range (ATR) added to the prior day session close. You can subtract it to get the ATR extension below as well. 

Price...

Results of Monday’s Best S&P Futures Turning Points: No levels were presented. 

Today’s Best S&P Futures Turning Points (filtered out during CPI release): 

Buy 5183.00 stop 5177.25. Short 5177.00 stop 5182.75 if price drops below and retraces to entry. 

The World Index: (+100/-100) jumps from -25 to +31 with most major world markets Bullish.  

Catalysts: CPI @ 8:30. 10-year Bond Auction@ 13:01. 

Quick Tip: Slippage

One aspect of trading newbies don’t consider is order execution. At first glance you may think “How hard could buying and selling be? Click a mouse!” Getting your price is not always possible, though. 

For example, I was live testing a new process whereby the entries and exits were set at different prices and quantities. Scale-in, scale-out. There were significant advantages… less risk, potentially greater reward. 

My platform allows for most of the orders to be...

Results of Friday’s Best S&P Futures Turning Points: Shorting the breakout from 5155.00 failed. 

No volume levels today due to contract rollover combined with an all-time high trading range. 

The World Index: (+100/-100) dips from +6 to -25 with Asia Bullish and the west modestly Bearish. 

Catalysts: Nothing obvious.  

Quick Tip: Confirmation

Many traders use a two-step process to enter their trades. The first is called a “setup.” Certain conditions appear ripe for an entry. The second step is called “confirmation.” The final evidence says pull the trigger. 

Here’s an example: Our trend strategy will signal that a trend is starting based on a chart pattern and current volatility. But that is not when the entry occurs. We wait for confirmation by looking for additional signals, then buy on a retracement to reduce risk and improve price. Simple enough. 

Last week a trade signaled...

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...