We are short term traders trading short term price action. Even if we believe the fundamentals are bearish, we still take long trades when our trading systems give a buy signals. (This process is fully automated). We can also take short trades when the fundamentals are bullish. Short term price action isn't always indicative of long term fundamentals and can greatly diverge for extended periods of time.
The strategies hit new equity peaks today with +$2,500 in the $200K Portfolio and +$625 in the 50K Portfolio. The live account is at new monthly and quarterly equity peaks. There was a higher intra-quarter equity peak in May.
Mondays have almost all been losers since April. I decided to trade it today since I believe this pattern will mean revert and correct itself. It was good to see a profitable Monday.
The Advance Decline line and NYSE TICK opened very weak and the market surged higher in the midst of very weak broader market metrics. The markets felt capitulatory with capitulation on the downside in commodities with Crude Oil trading as low as 86.82 and Soybeans down more than 40 cents per bushel while stocks feel like they are going parabolic. It is time for some ebb and flow but be careful calling tops and bottoms as these moves could extend even further.
The stock indexes and VIX are both higher today and marks a one day VIX divergence. Looking for a second day of VIX divergence tomorrow since two days in a row are more notable than a single day VIX Divergence.
We are flat at the end of the day.