Hypothetical Trading System Signals on July 14, 2022 - Momentum Reversal Day
- Capstone Trading
- Jul 14, 2022
- 1 min read
We paused trading yesterday at breakeven on the month. We track the hypothetical trading system signals today.
The market internals were weak but the market still reversed on the day. Momentum Reversal NQ captured the signal. The other signals on the Nasdaq were down on the day.
Since May 20, 2022, we have seen a simplistic pattern unfold. The market goes down overnight and goes up during the day. This isn't a long term signal that works but it does define the market mode the last couple of months.
The Fed's balance sheet was up $4 billion the week of July 7 - 13. With inflation at 9.1% yesterday, the Federal Reserve has yet to follow through with much action to reduce inflation, barely raising interest rates and no real balance sheet reduction yet.
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