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Hypothetical Trading System Signals on July 27, 2022 - Massive Long Signals to New Equity Peaks FOMC

The market rallied big on FOMC generating massive long signal gains on the Nasdaq futures. The hypothetical trading system signals today were +$21,000 per e-mini, +$8,500 in the 200K Portfolio, and +$2,125 in the 50K Portfolio.

We are still on the sidelines waiting for a drawdown. One thing we have seen after big up days are choppy draw down periods. Its frustrating to miss the gains on days like today. After a summer of chop, the trading system signals have gone pretty hot as we go into the end of July.

I look forward to getting back in sync with the markets. During the last drawdown, I was not 100%, going through Covid. We paused on July 13th and have not started again.

Its positive to see the recent performance.

As far as the market is concerned the Fed continues to talk tough about inflation and the balance sheet but there has been no real action on the balance sheet - which would have a stronger effect on inflation and stocks in my opinion. I heard Jerome Powell say, "Working to significantly reduce the size of our balance sheet". So far it is only 0.7% off its high in April.

The market also believed the Fed pivoted today with some vague guidance about no more rate hikes.

The market feels like its in a twilight zone to me. "the markets are ignoring what the Fed is trying to do". They can ignore it because the balance sheet supports the bulls.

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