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Capturing Turning Points in CounterTrend Markets

We have seen massive trends the last few years. We were able to take advantage of trends more than any time in the past as the point value based trends in the market were amazing. This year, the new regime has caught up with us since it has been hard to detect. Now that we have detected it, we invite the current market environment to continue so that we can take advantage of the counter trend markets more than anytime in the past.

After the pandemic, the markets were more inefficient (easier to trade) based on a trend environment. Now that the pendulum has swung in the opposite direction for the trend strategies, I believe it is possible to capture the largest inefficiency (also easier to trade than efficient markets) for countertrend strategies.

We want to get setup for portfolio trading in Q2 to take advantage of this opportunity for wide ranging chop with strategies such as the V-Reversals, Choppers, and VWAP setups.

Today we released the Stochastic Divergence indicator, which is a Tradestation show me study, to get started. I have a list of strategies that I need to put into the Portfolio Calculator as we prepare for Q2. While we see the obvious counter trend nature of the market, we also have a play book and watchful eye for a change back to a trendy market. It is possible we could remain in this counter trend mode or regime for awhile.

Its a change in mindset from waiting for the market to return to more trends, to taking advantage of the current market conditions.

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