Live and Hypothetical Trading Systems Signals on October 26, 2022 - Bullish Illegitimization


The markets were propped up all morning creating a strong uptrend on a gap fill before rolling over back to the open of the day and remained propped up at those prices in a choppy pattern. Any real distribution on days like today seem to happen only overnight. Alphabet disappointed yesterday with earnings. The market sold off in the after hours and overnight and then was propped up all day.


We gave back about 80% of yesterday's gains as prices were really distorted today and there was a much greater than normal divergence between price in the narrow indexes such as the Nasdaq 100 and the broader market internals. The Nasdaq 100 was much weaker on Alphabet earnings while the S&P 500 was much stronger but still down on the day. The Advancers minus Decliners were up 631 today while the Nasdaq futures were down -2.24% and the S&P futures were down -0.57%

I will be going back today and looking at what happens on days when the Nasdaq is down more than 2% and the Advance Decline line is greater than 500.


The 200K Portfolio was down -$4,400 and the 50K Portfolio wasd down -$1,380. The hypotheticals were -$4,435 and -$1330.50 respectively.


In the after hours, Meta is down 10% on disappointing earnings news.


The fundamentals continue to trend lower since June of this year but the market is higher than those June 16 lows when the market assumed the Fed would pivot.

The market remains propped on daily charts as well as intra-day charts. The seasonal bullish strength and the desire of the bulls to push the market higher once again seem to override all other fundamentals right now.


I'm okay with price distortion and illegitimization if it creates some good trends. This price action continues to be weak in both directions and hard to trade.

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