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 automated, but not all. This meant I needed to pay attention in real time to ensure all the rules were met...

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 and confirmed. It was worth 30 S&P points. I didn’t take it. I fell into a trap called Confirmation Bi...

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 you’re skilled at the more opportunities. This gives you the confidence to disqualify trades that are marginal probability-wise. 

2. Be pa...

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 live, waiting for the announcement, filtering out any trades until the price action calms down. Price shoots ...

Results of Thursday’s Best S&P Futures Turning Points: The short idea was filtered out during PCE release, as noted.

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) eases from +19 to +13 with most major world markets mildly Bullish. 

Catalysts: Final MFG PMI @ 9:45. ISM MFG PMI, ISM MFG Prices & Revised UoM Consumer Sentiment @ 10:00. Fed’s Waller @ 10:15, Bostic @ 10:50, Daly @ 13:30, Kugler @ 15:30. 

Quick Tip: Not Gambling

The uninformed frequently consider trading a form of gambling. But even the trader who knows there are similarities and differences doesn’t always focus on the keys to taking the “gamble” out of their trade plan. 

Consider these and audit your personal trade plan for compliance. 

1. Trading uses probabilities from carefully researched historical performance to ensure success. Gamblers use chance. 

2. Trading requires car...

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

Today’s Best S&P Futures Turning Points (all trades filtered during PCE release): 

Buy 5046.75 stop 5042.75. Short 5083.75 stop 5086.50.

The World Index: (+100/-100) jumps from -44 to +19 with mixed sentiment across the planet.  

Catalysts: PCE/Personal Income/Spending & Jobless Claims @ 8:30. Chicago PMI @ 9:45. Pending Home Sales @ 10:00. Fed’s Bostic @ 10:50 and Mester @ 13:15.

Quick Tip: Consistency

Markets are either trending or not, volatile, or not. It should be no wonder that traders may have similar cycles of performance, winning streaks, losing streaks, consistency, and inconsistency. 

If you’re NOT in the zone, here’s a simple but highly effective checklist to work through. 

1. Take a break, clear your mind, and come back to trading with a fresh perspective.

2. Analyze your past trades to identify patterns in your trading behavior. Look for mistakes that you may be repeating and try to...

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

Today’s Best S&P Futures Turning Points (all trades filtered during GDP release): 

Buy 5046.75 stop 5042.75. Short 5117.50 stop 5121.00.

The World Index: (+100/-100) plummets from +38 to -44 with most major world markets Bearish on rising volatility. 

Catalysts: GDP @ 8:30. Crude Oil Inventories @ 10:30. Fed’s Bostic @ 12:00 and Williams @ 12:45. 

Quick Tip: Pros Agree

Three celebrated authors on trading success, Mark Douglas, Van Tharp, and Alexander Elder, all agree that one aspect of trading is crucially important: 

"The key to trading success is emotional discipline. If intelligence were the key, there would be a lot more people making money trading." - Mark Douglas

"Successful trading is not about being right; it’s about being disciplined. Discipline is the ability to follow one's trading plan, regardless of emotions or external influences." - Van K. Tharp

"Discipline is the bridge between g...

Results of Thursday’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. No great shorts today. 

The World Index: (+100/-100) eases from +69 to +38 in a mildly Bullish world on plummeting volatility. 

Catalysts: Nothing on the economic calendar. Let’s see if there is any follow-through from the NVDA rally. 

Quick Tip: You’re the Enemy

Showing my age here quoting Walt Kelly’s Pogo cartoon: “We have met the enemy, and they are us.” 

Developing traders put so much time and effort into finding the best strategy and risk management plan (both important) that they ignore the real enemy in trading. 

Your personal psychology about winning or losing, and being right or wrong, will ruin your performance more than a mediocre strategy. 

Here’s proof. The famous Turtle Trader, Curtis Faith, in his book Way of the Turtle, gave  his recommended readin...

Results of Thursday’s Best S&P Futures Turning Points:Shorting 5040.25 was only good for a 5.25-point scalp. 

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

Buy 5026.00 stop 5021.75. Short 5022.50 stop 5026.75 if price falls below and retraces to entry.  

The World Index: (+100/-100) jumps from +29 to +67 with all major world markets Bullish on rising volatility.  

Catalysts: PPI, Building Permits, Housing Starts @ 8:30. Fed’s Barr @ 9:10. UofM Consumer Sentiment @ 10:00. Fed’s Daly @ 12:10. 

Quick Tip: 4 Fears

You know that a winning trader is a confident trader, and a losing trader is a fearful trader. Part of your personal development plan should be eliminating your fears. 

Yes, fears. Plural. You can have more than one. Over the years teaching traders I’ve noticed different types of fear. 

1. The most obvious is fear of loss. Managing your risk, pre-determining your “risk number” (the amount that negatively affects you ...

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

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 4987.00 stop 4992.75.  

The World Index: (+100/-100) eases from +25 to +19 with mixed sentiment and increasing volatility. 

Catalysts: Fed’s Mester @ 12:00. Plenty of earnings. 

Quick Tip: Sequencing 

If trading is 80% psychological that leaves 20% to the edge your strategy has. We really don’t know if the 80% figure is accurate but you’ll hear a big number like that from many skilled traders and coaches. Regardless the accuracy, how we behave as traders is vitally important. 

Back when racquetball was popular I was a competitive player and found a coach to improve my performance. Here’s the dialog from “lesson one.” 

Coach: “Why do you want to play racquetball?” 

Mike: “Exercise, gets me in shape, fun.” 

Coach: “You have it backward. Yo...