Nice gains on the long side to put us up for the week and for the month. The 200K Portfolio was up $5,150 and the 50K Portfolio was up $1,275. This put us up $3,425 on the month in the 200K Portfolio and up $810 on the month in the 50K Portfolio. We are also up on the quarter after today (since July was approximately breakeven).
The fundamentals can diverge from the technicals. If we think the market is going down or should go down but it goes up instead, we go with the trade and take the long side since we are short term traders. (We do use a trading system to take these trades).
It is better to be profitable than try to make sense and match the fundamentals with the technicals or to insist that the market move in the direction that we believe it should. This is one of the reasons that I prefer to be a short term technical trader.
It was good to be back trading the strategies this week after nearly a month of being out of sync with the market trying to time a re-entry after a Covid pause.
The disappointment this week is that we underperformed the strategies since the 60M Breakout on the Micro Nasdaq had a 55 point wider swing on CPI this past Wednesday and seems to have triggered a monthly pause stop loss. The E-mini version is still up this week and was up 3k today but the Micro version did not trigger any signals.
I am working on this strategy. It is difficult to account for such big differences between Micros and E-minis. Fortunately a 55 point divergence between Micros and E-minis is very rare.