I believe we are in a bullish market mode with a stealth bull move in the market. The liquidity is still there. The Fed hasn't reduced its balance sheet yet and commodity prices have come off their highs. I'm looking for a move higher overnight.
Ultimately, I believe the commodity markets will surge once again and stocks will drop once again but in the short term, I am anticipating higher prices. We see this slow grind higher and as we come into the July 4th holiday, we tend to see markets move higher around holidays.
We are sitting on the sidelines for real trading but actively and intensively researching the markets. There is still a lot of stop running and chop in the markets as we discuss gap fills with divergent and convergent price action. Last Friday we had a rare trend but today we were back in the chop.
I am working on strategies that capture the chop as well in my research, more active mean reversion strategies that fade the trend or try to capture the turn around move and get out before it is too late.
The 200K Portfolio would have lost -$4,200 today and the 50K Portfolio would have lost -$700 today.
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