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Live Trading System Signals on 05/20/2025

The market continues to remain "stalled out" at these levels for 5 trading days in a row. The RSI and Stochastics are overbought but the liquidity seems to want to prevent any sort of normal pullback here. The S&P broke its 6-day win streak while the prior win streak of 9 days, ending on May 2, was the longest in 20 years. The market remained extremely rangebound through the day with the Nasdaq range of less than 100 points for the first three hours of the session. It broke the upper end of the range first and then the lower end of the range in what looked like the start of a normal pullback after the massive runup since April 21.


The last hour of the session, a "fix it up, prop it up" rally came in to push the indexes back to the middle of the day's range. The price action today was divergent. Divergent price action moves back and forth to new highs and news lows in an increasing range. It can be challenging to trade divergent price action. The surge in precious metals today was called by the Gold Wave trading system that we are still considering trading but have not started yet.



The One Million MNS was down -1.47% today while the 250K Portfolio was down -$3,675. The afternoon sell off was enough to be a stop run move for our long trades, stopping out our longs before rallying again into the close. The price action was frustrating, and we are once again witnessing an overly narrow range for a VIX 18.


The last several days we have seen the type of market environment I have seen in the past when there is QE and a VIX of 12. The shift from the recent volatility in April to this mode, this quickly, is extreme and I would anticipate that this is the calm before some bigger moves, unless stealth QE becomes more and more active.


The CVIX has collapsed as we are seeing readings of 7, 6, 2, 6, and 4 the last 5 days after seeing readings between 30-40 on a regular basis. We have seen the overshoot on both sides of volatility and churn.


The hypothetical results are shown below for the portfolios with $25 round turn slippage and commission:


Stock Index Portfolio 17 (1 NQ) = -$3,500.00

Stock Index Portfolio 17 (3 NQ) = -$10,500.00

50K Portfolio = -$2,895.00

EMINI NQ 2 System Portfolio = -$845.00

EMINI NQ 3 System Portfolio II = -$2,120.00

EMINI NQ 4 System Portfolio = -$2,120.00

EMINI NQ 5 System Portfolio = -$1,870.00

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