Hypothetical Trading System Signals on June 22, 2022

The market sold off all the way back to last Friday's close in the overnight session. At 9:30 am EST, during Jerome Powell's statement and question and answer session before the congressional senate finance committee, the market rallied quickly to reclaim yesterday's close and then hit new highs on the week. It then rolled over to the ranges of last Wednesday's FOMC close.

The market is trying hard to rally in the midst of a break in energy prices. Fears of recession are putting a cap on the rallies and the efforts to rally look really weak.

Its a very sloppy market with sporadic mean reversion. One of the playbooks seems to be, "Buy any Fed speak" regardless of what is said. We saw that type of price action today as well as last Wednesday during FOMC, only to see the market roll over after Fed speak.

The European Central Banks (ECB) balance sheet is at new all time highs this week. There isn't much Quantitative Tightening happening yet. Interest rates are still low and central bank balance sheets are at or near all time highs. The market seems to want to call the Feds bluff on QT with these rallies on Fed speak.

Its difficult to imagine the Fed would pivot unless the market dropped another 20%.

We are still on the sidelines in this massively choppy market doing research on existing strategies as well as new strategies. I spent most of the day studying the nuances of Tick Pulse V12 NQ.

Some of the best strategies that seem to be working on a day to day basis right now for the most part are strategies that don't typically work historically.

Gap Continuation and Reverse was a highlight and took a trade that looked like a Fibonacci Retracement buy signal.

The 200K Portfolio had trade signals of -$4,000 today while the 50K Portfolio was -$680. These were hypothetical trade signals. No actual trades were taken.