Founder's Trading Journal - 10/10/2022 | Archimedes Methodologies

S&P 500 Index Continuous Futures / Friday’s Close – 3639.66/ -103.50 pts (-2.76%)

Originally Published in the Wee Morning Hours of Monday Morning

Navigator Swing Strategy™

Navigator Algorithm™ Trends

Navigator Trading Sandboxes™

Click here to learn about Trading Sandboxes and how they work. The table below lists the granular price obstacles a trader will encounter inside the expected move ranges. The DEM and WEM help us narrow our focus for the day and week ahead. We also included a few important price levels outside the range boundaries – for the less probable occasions (like yesterday) when the price exceeds the edges.

To successfully navigate this data, traders need to monitor the price auction with volume profile histograms for the day and a cumulative profile aggregating the last 10-20 sessions. As price travels north or south from level to level, volume tapers off at reversal points, and the process begins anew in the opposite direction. Professionals call this “price discovery.”

Founder's Journal and Trading Notes

Below are a few relevant excerpts for today from A.F. Thornton’s trading journal. Check out the full notes with a paid Subscription, which also includes access to Mr. Thornton’s live charts in the Founders Trading Room. The full journal contains Mr. Thornton’s daily trading plan and reflections on his daily gains and losses.

References to “the Market” below mean the S&P 500 Index. The quoted numbers are from the front month E-Mini Continuous Futures Contract (now December 2022).

A few excerpts on today and what to expect tomorrow...

Today is a semi-holiday – Columbus Day – with the Bond Market Closed. So it will be a light day for us today.
We call it the “Cradle Trade.” The market launches a rally and then returns to the Algo Trigger Line. In a healthy market, it would be touch and up from there.
And a cradle is what it looks like in Globex. Traders pushed the market below Friday’s low and brought it back nearly to Friday’s half-back on the Candle. Slightly bullish, maybe?
And for Today’s Blue Light Special, that pesky bond market and the banks are closed for Columbus Day. Bankers never met even a pseudo-holiday they didn’t like.
But we still have the CPI and PPI numbers on Wednesday and Thursday, and bank earnings will get served up soon.
Global events continue to haunt us as well.
Let’s see how it goes in our 250-point range forecast for the week ahead.
Don’t forget the air pocket below 3600. The next significant volume spike (support) is down at 3350.

A.F. Thornton

BluPrint’s business model for retail services is sharing the buy/cover short and sell/short signals generated by our proprietary Navigator Algorithms™ for the S&P 500 index. Subscribers can implement the signals with the SPY ETF, SPX or SPY options, S&P 500 EMini (and micro) futures, or a combination of these instruments as the context warrants.

Futures and options are leveraged instruments that involve high risk, volatility, leverage, and loss. They have different characteristics with comparative advantages and disadvantages. With leveraged futures, you could lose more than your original investment. Past performance does not guarantee that you will achieve similar results, nor do we.

A.F. Thornton is not a financial advisor, nor is he your financial advisor. He only expresses his opinion based on his experience. Your financial situation and experience may be different. This blog is for educational and inspirational purposes only. Your investments are solely your responsibility. You must conduct your own research.

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Founder’s Trading Journal – 10/10/2022