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Highest Volatility in 94 Years - Hypothetical Trading System Signals on June 29, 2022


I saw a report on CNBC today from the twitter handle Sentimenttrader that we are experiencing the highest volatility since 1928 based on the number of 5% moves. The VIX certainly isn't very indicative. It will be interesting to go back and research this type of volatility measurement in relation to automated trading systems.


Additionally tomorrow is the PCE report (an inflation indicator), the last day of the month, the last day of Q2. We will gladly show June the door. This month has been extremely choppy and one that has denied the trend with excess liquidity still on the Feds balance sheet.


It will be interesting to see if the Fed reduced their balance sheet this week. We will know tomorrow evening. That could explain yesterday's sell off. The balance sheet is updated every Thursday evening for the prior 7 days ending on a Wednesday.


The Fed was initially committed to reducing its balance sheet by nearly $100 billion per month starting in May to "fight inflation". That was pushed out to June. Maybe they pushed it once again to July? What are they afraid of?


We continue to sit on the sidelines but track our old portfolio setup's trading signals from a hypothetical basis since we didn't trade it live. We discuss the trades on the day with a -$8,500 loss on the 200K Portfolio based on 6 micros and and -$1,450 on the 50K Portfolio based on 1 micro. The Nasdaq strategies were 0 for 7 while the S&P strategies were 1 for 3.


We show some of our latest strategies that we are working to release to our All Strategy Access subscribers and place in the Portfolio Calculator while finishing our research to update the Stock Index Portfolio and a new Stock Index and Commodity Portfolio setup.

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