The One Million MNS was down -0.825% today and the 250K Portfolio was down -$1,650 giving back about one fourth of yesterday's gains in the chop before the Jobs Report tomorrow morning at 7:30 am CST.
The Stock Index Portfolio 18 was down -$2,940 on the day with only three trading systems taking trades. This was about 1/3rd of yesterday's gains.
The ECB cut their overnight lending rate by 0.25% and is the first of central banks to start the rate cut cycle. Initially it felt like a sell on the news event. The market has been rallying since June 2022 with the idea of a Fed pivot to first pause rate hikes and then to cut rates. We have anticipated this sell on the news idea based on the FOMC and not the ECB. The ECB may have started the trend. The selling was very light and choppy and with the massive liquidity, we could still see higher prices and for now and the trend is still higher.
In recent years, we typically see the Fed cut rates when the market has sold off. With markets at all-time highs, it is an interesting dynamic. NVDA hitting a $3 trillion market cap yesterday is also a potential profit target for the market.
Tomorrow is Jobs Friday. We work to combine market observations with technical trading strategies and economic fundamentals to get a picture of the long-term trends.
GME is spiking higher again and continues to be an interesting story.
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