Trade Aptitude

Today’s Best S&P Futures Turning Points: Nothing tradeable today.  

Monday’s results: This strategy is on hold. To understand why, read yesterday's newsletter.

The World Index: (+100/-100) plummets from +57 to -29 with most major world markets Bearish.  

Catalysts: JOLTS & Factory Orders @10:00

Quick Tip: Your Hot List

If you’re a directional stock or options trader you know the importance of stock selection. All the trading skills in the world don’t matter if you’re trading assets that don’t move. 

You could look at the historical performance of stocks to assume their past will repeat in the future but that’s not ideal. 

There is a better way… a true Leading Indicator. Insider buying. Key executives have only one reason to write 7 and 8-figure checks to own more of their company. They think it’s going up and research has proven this to be true.

From "The...

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Trade Aptitude

 

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Trade Aptitude

 

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Trade Aptitude

 

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Trade Aptitude

 

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Trade Aptitude

options swing trading Apr 02, 2024

Results of Monday’s Best S&P Futures Turning Points: Buying 5311.00 only offered a 6.25-point move. Shorting 5306.25 ran for 24 points but not before just stopping out by a few ticks. Hoping your stop placement was looser. :-)

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

Buy 5242.00 stop 5236.25. Short 5311.25 stop 5316.00. 

The World Index: (+100/-100) improves from +7 to +29 with most major world markets modestly Bullish on lower volatility.  

Catalysts: JOLTS & Factory Orders @ 10:00. Fed’s Bowman @ 10:10, Williams @ 12:00, Mester @ 12:05, and Daly @ 13:30. 

Quick Tip: Best Option Setup

Unusual Options Activity (UOA) is a great leading indicator of price. 

What are they? Identifying the best candidates starts with an extreme volume spike relative to small open interest (existing contracts not yet closed...

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Trade Aptitude

Results of Wednesday’s Best S&P Futures Turning Points: No trade triggered. 

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

Buy 5280.00 stop 5274.25. Short 5274.25 stop 5280.00 if price drops below and retraces to entry. 

The World Index: (+100/-100) jumps from -14 to +21 with most major world markets mildly Bullish.

Catalysts: GDP & Jobless Claims @ 8:30. Chicago PMI @ 9:45. Pending Home Sales & UofM Consumer Sentiment/Inflation Expectations (revised).   

Quick Tip: Expectations 

What are you struggling with?” was the question I asked a group of traders a while back. One woman said she had “expectation” challenges. She felt she needed to acknowledge that every trade cannot be a home run, or “10 to 1” as she phrased it. 

I respected her self-awareness. Expectations is not a commonly voiced trading...

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Trade Aptitude

Results of Thursday’s Best S&P Futures Turning Points: No trade triggered.  

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

Buy 5286.50 stop 5280.75. No short trade today. 

The World Index: (+100/-100) dumps from +43 to -14 with Asia Bearish and the West mixed. 

Catalysts: Fed’s Powell @ 9:00 and Barr @ 12:00. 

Quick Tip: New Paradigm

What are your beliefs about successful trading? How have you been taught? 

Technical analysis – “All I need is a good indicator or two to be a winner, history repeats itself enough for me.” That’s OK. 

Fundamental analysis – “Indicators are lagging, I want to study and KNOW the asset I’m trading to predict the future with confidence.” That’s OK too. 

Chart analysis – “Patterns on the chart are predictive...

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Trade Aptitude

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...

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Trade Aptitude

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...

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