Live and Hypothetical Trading System Signals on October 20, 2022 - Massive Market Mispricing


We went live today as we anticipated that today or tomorrow would be the right timing for a potential profit after a drawdown as we cycle into the end of the week. Today was a down day with unusual price action. Stock indexes look massively mispriced to me. After Monday's gap up, the market continues to return to Monday's close and act very stationary in the midst of very dynamic fundamentals, news flows, and earnings.


We have a week long prop up as we come into Friday's trade. I'm looking for new lows now to take out the CPI lows as we go into the end of the month.


Bonds sold off hard today with interest rates moving higher. Stock indexes had been moving with Bonds on lower lows. Since last week's CPI, the Nasdaq is higher while Bonds are much lower (interest rates higher). It would seem there is some catching up to do for stocks on the downside.


The 200K Portfolio was down today -$6,650 while the 50K Portfolio was down -$2,050. The live results were better than the hypotheticals which were -$7,055 in the 200K Portfolio and -$2,116.50 in the 50K Portfolio.


The strategies were 0 for 6 on the Nasdaq and 0 for 2 on the S&P. Two days in a row with only one winning traded of $5. We are basically 0 for 18 in the last two days.


I like the cycle as we move into tomorrow's trade and starting or adding after a losing streak. Friday's have been one of our best trading days and the biggest day in the portfolio historically is $40K+. We are due for a big day in this portfolio, but at the same time, the market could chop through mid-term elections.


The Fed's balance sheet was down $15 billion this week and $42 billion on the month. It is starting to move at the pace that was committed by the Federal Reserve. It is still only 2.5% off its all time highs.

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