The 250K Portfolio was down -5.6K today as we are in a -6.5% drawdown on the year. We started this portfolio 7 days ago after a drawdown entry alert using mostly existing strategies. After watching the portfolio hit a couple of equity peaks in hypothetical simulated trading, after some small drawdowns, we started trading it live last Tuesday after a medium level hypothetical drawdown.
Since we have gone live, we have endured a 7-day losing streak. The hypotheticals show a max losing streak of 8 days, going back to 2008. We have endured these types of drawdowns the last few years and will trade for a bounce as we enter a favorable time of the week.
As we enter a favorable time of the week, we also see a favorable market pattern where the market has taken back enough of the losses from yesterday, that the highs in the Nasdaq are close enough for a run to the highs and potentially 18,250 on the Nasdaq, into Friday's close, which could generate a strong move intra-day if the move doesn't happen all in the overnight session.
The market has really expressed itself differently the last few months in the uptrends. The patterns often times look like bearish patterns that resolve to higher prices. Some of the smoothest trends have been in the overnight session. We continue to consider some NightTrader type strategies as well as our V-Reversals which had some good trades the last couple of days.
Taking long only trades in the afternoon if the market is down is a strategy to consider right now as well since the market loves to chop at the beginning of the day and form the skinny trend at the end of the day.
The Stock Index Portfolio 27 E-mini was down -$6,342.50.
The Stock Index Portfolio 27 Micro was down -$708.00.
The Stock Index Portfolio 27 is still recommended and should wait for a bounce as well. If we don't get a bounce in these portfolios for some favorable trades by Friday, then we will pause trading and re-adjust.
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