Live Trading System Signals on 05/23/2025 and EasyLanguage End of Day Sell Offs

The VIX spiked above 25 in the pre-market and settled at 22.29. I believe most traders would have anticipated that there would be more range and trend in the market after the pre-market news on AAPL and tariffs and VIX spikes. I would have anticipated a stronger down trend or even a massive reversal based on what we have seen recently in the markets. The 24-hour range was 509 points while the day session ranges was only 250 points in the Nasdaq futures. The day session ranges in the stock indexes remained relatively compressed and controlled.

The price action ended up being sloppy in a narrow range with the Zig Zag Count hitting 10. We were ready for more price movement and ended up with narrow ranging markets instead. We saw this quick compression on Wednesday as well, a fast quick move lower followed by a compression in range and sideways price action on Thursday with no follow through until the pre-market Friday. It feels like we didn't get all the net selling in or the pullbacks that we should have this week on the daily charts. On the other hand if this is the extent of the pullback we get based on this news flow (credit downgrades, high yields, JGB, tariffs, AAPL, etc), and technically, after this runup, then the market could be due for a surge to all time highs. After all, some stealth QE seems to be back on the table with the Feds Bond buying program and Bitcoin made its move to all-time highs while the stock indexes lagged.

The VIX and end of day selling has me conflicted.

The end of day sell offs have been persistent so I tested it. This is tested on a one minute @NQ chart based on EST using the US STOCK Custom Session - day session only.

Here is the Easylanguage code and test results.

Selling at 3pm EST/2pm CST and covering at 4:15 pm EST/3:15 pm CST shows that May is by far the most profitable month for the months shown in the Tradestation report. We don't just start trading a "one off pattern" or adjust our strategies based on what could be a short-term anomaly. The constant dip buying to generate a mid day uptrend seems to have exasperated this pattern of end of day selling.

V-Reversal had a nice week and was up today on one long winner and one short loser for a net gain of almost 40 points. The continued mean reversion rally that tilted the trend higher for our long trades also distorted a good V-Reversal short. By the end of the session, the price was below our V-Reversal short entry (second trade of the day).

The One Million MNS was down -2.75% on the day while the 250K Portfolio was down -$6800 in live trading. We ended up around breakeven on the week. We were positioned to go up on the day in the last hour as we have many days this month and any normal extension would have generated nice gains. The last hour selling has gone against many of our trades this month since the liquidity dip buyers step in, push the trend higher mid day, looking for that last hour surge. The last hour surge is turning into some extended selling. The selling into the close can accumulate towards a trend change and we could see some more opportunities for shorts. Maybe the last week in May will become "Sell in May and Go Away". Monday is a holiday and NVDA reports earnings next week.

To summarize: We are approaching the last week of May 2025. The entire gains in the Nasdaq 100 in 2024 were in the overnight session. A correction in 2025, seemed natural. In 2025, we have mainly had a news cycle with a rapid decline followed by a rapid rally, with the highest churn since 2001 based on the CVIX indicator, followed by a quick compression in range. We are positioned for some resolution in market pricing for the last week of May with Stock Index Portfolio 18.

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

Stock Index Portfolio 17 (1 NQ) = -$7,245.00

Stock Index Portfolio 17 (3 NQ) = -$21,735.00

50K Portfolio = -$125.00

EMINI NQ 2 System Portfolio = +$810.00

EMINI NQ 3 System Portfolio II = -$5,095.00

EMINI NQ 4 System Portfolio = +$1,335.00

EMINI NQ 5 System Portfolio = -$215.00