Daily Trading System Results - April 11, 2022


The 50K Portfolio (LIVE) = -$275

The 200K Portfolio (LIVE)= -$1,750


We were correct on our direction on Friday with a follow through to the downside overnight.


The challenge with our strategies was the intra-day price action that was mostly sideways. There was a five hour period of very narrow range side ways price action between 10:45 am EST to 15:30 pm EST.


We are due for more downside but the lack of follow through to the downside may now generate a massive counter trend rally.


Tomorrow at 7:30 am CST, we get March CPI. It could be a market mover. We have seen higher markets on higher CPI data. If there is a down tick in CPI, it could also move higher. If there is a surprise to the upside, (12%), it could generate a strong sell off.


We also anticipate a potential weekly cycle with turn around Tuesday.


Either way we are flat at the end of the day and will take long or short trades depending on the opportunities in the market.


This is a holiday shortened week as the markets will be closed on Friday for Good Friday. Seasonally its a strong time of year and the bulls want to post gains through April.


May could be "Sell in May and go away" this year as the Fed will begin to reduce their balance sheet or so they say.


There are times when we are in drawdowns and we hit maximal price frustration. That was the case today. Cobra III E-mini S&P came within 1 tick of its short profit target before reversing and hitting it stop by only 2 ticks.. On the same rally Tick Fader need another 2 ticks to hit its long profit target. The market rolled over though and Tick Fader was then stopped out.


The rollover was weak as we were positioned short into the close and need a more normal follow through for our shorts to "catch up" on the day. The market paused and reversed again after 16:00.


We are near worse case drawdowns but anticipate a bounce here. I am making one adjustment here for tomorrows trade. We are going to use the Gap Continuation 2019 NQ 2000 SL. This will use a 100 point stop loss instead of a 35 point stop loss.

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