Live Trading System Signals on August 26, 2022 - Shorting the Stock Index Futures for Gains


The 200K Portfolio was up today +$4,300 and the 50K Portfolio was up today $1,075 shorting the futures on Jay Powell's Jackson Hole speech, the Super Bowl of Economic Conferences.


It was good to be up 2% on the day when the S&P was down about 3.5% and the Nasdaq was down about 4% as our strategies were mostly short today while the dip buyers were crushed.


Yesterday, the market closed near its highs. Today the market closed near its lows. Its been awhile since we have seen that.


As far as Jackson Hole and Jay Powell are concerned, I was surprised that the market went down instead of up. I am not sure how the market interprets Fed speak as it is frequently different than what I hear. At the last FOMC meeting, the market heard "Fed pivot to lower rates". I did not hear that. Today's speech sounded the same but the market heard "Fed won't pivot" and "higher rates for longer".


It seems like the market finally interpreted Fed policy as it is stated and believes there will be tighter monetary policy.


Its best to trade price instead of news and its the reason we trade fully automated trading systems that focus on price based data instead of fundamentals. I am not interested in an algo that reads breaking economic news to make trading decisions.


I will be closing my 60M Breakout Short ES trade before 4pm CST and try to sync up again on Sunday night if it still has an open position. We could miss a huge gain if there is a big gap down and could miss a big loss if there is a big gap up.


There are three trading days left this month. It will be interesting to see how the market continues to respond next week.


We are flat as we go into the weekend and look forward to next week's trade.




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