The One Million MNS 128 was down -0.86% on the day while the 250K Portfolio was down -$1,710 in live trading. The monthly results are approximately -1.00% on the month in the 250K Portfolio while the One Million MNS 128 is sitting near a worse case drawdown.
The pre-election trade has generated some of the most difficult price action in months. We are in a "trade small or not at all" mode. The last 10 days have been narrow and more random. I do anticipate some wider swings now with one week to go until the election. Wider swings in the market can generate some favorable price action.
We will manage the drawdown bounce and if the strategies don't perform well at these levels, then we will cut back on the strategy selection or pause until after the election and FOMC next week.
The price action today was the type that felt like it reversed against us on each trade. The cycle of trading can change quickly and oftentimes some of the best price action follows a streak of some of the worse price action.
The Stock Index Portfolio 18 hypothetical results were +$280 per E-mini and +$26.50 per Micro. The Stock Index Portfolio 18 has been a leading indicator for some of the larger portfolios in the past. On Friday it bounced off the lows and was up again today. If the One Million MNS 128 rotates into this pattern, we could cycle back before the end of the month into some better trades.
The V-Reversal NQ was up +$1,020 on the day as a highlight. It exited its short trade towards the end of the session. The range was so narrow and the sell off so slow, it looked as if it was about to bounce all afternoon. At the end of the day the chart shows a very choppy downtrend with the day session closing near 20,500 on the Nasdaq. The Nasdaq futures really like the 20,500 level and continue to return to that price.
We have a new strategy VRUN NQ that we implemented today in the trading. It was down on the day taking a long trade but could be a good strategy post-election. This strategy will be added to the Portfolio Calculator and sent out to All Strategy Access clients.
There are three trading days left this month. We get the employment situation on Friday followed by the election next Tuesday and FOMC next Thursday.
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