Live Trading System Signals on August 17, 2022 - FOMC Minutes - Buy the Lie, Sell the Truth


Challenging trading day. FOMC minutes are not typically so volatile. FOMC minutes are typically already known and re-iterate the previous FOMC meeting. The market seems to buy the lie and sell the truth as the meme stocks are raging again.


The 200K Portfolio was down -$4,750 and the 50K Portfolio was down -$1,200 (correction from the video). Monday was an equity peak and today was extremely choppy for both long and short trades giving us a drawdown alert.


We have had two days in a row where the market starts to sell off and then runs back to the high or previous day's close, depending on the stock index. The S&P closed above is day session open today.


We discuss the extreme unnatural bias to the long side as the fundamentals are bearish while the price action remains bullish. The latest Feds balance sheet is scheduled to be released tomorrow. They have not reduced their balance sheet at the pace they have committed to. The pace is supposed to increase in September but you have to be skeptical since the Fed doesn't always do what they say they will and its "independence" limits any real liability or accountability.


We made several videos today showing the portfolio results in Multicharts Portfolio Trader showing how the short side has not been profitable since May 1, 2022. This is an extreme bias in price action. I anticipate a cycle back so that the short signals will also work. These are typically day trade shorts and capture the ebbs and flows of the market. There has been very little "ebb" for the shorts intra-day on the short side.


Inflation in the UK hit a new 40 year high today at 10% with Natural Gas soaring.


APPL is 5% from its all time high and a $3 trillion + valuation.


The yield curve continues to remain inverted.

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