Monday was a reversal down day, Tuesday was a reversal up day, Wednesday was a Humphrey Hawkins, New York Community Bank chop day. We are looking forward to Thursday and Friday as they have been some of our best trading days after a choppy Monday - Wednesday.
The live results were -$3,535 bringing us to around breakeven (+$250) on the month after last Friday's big gains. We saw one of the choppiest and fastest order books for a narrow range that I have seen in a while. Ive seen the order book this fast but it usually resolves to more of a trend.
A full E-mini would show -$7,070 and a micro would be -$710 on the day for the Stock Index Portfolio 30. We may add the choppers since they lost on Monday.
I thought the market should have rolled over by now and into yesterdays close for a normal pullback. The excess liquidity is anxious to prop up very shallow dips. We had one of the "last 30 minutes of the day and overnight" trends for a very smooth up trend in the overnight session, generating a gap up with extreme intra-day chop. Lately, the type of price action that generates normal pullbacks, keeps generating rallies instead.
The last 30 minutes yesterday as well as the overnight rally were surprising to me. The market seemed to try to correct the rally by rolling over this afternoon but the constant dip buying generated massive chop. I'm anticipating the market to rollover to yesterday's lows by Friday but will take a rally to the highs as well. Our strategies are ready to take the long or short side. The instantaneous reversals and constant chop have been tricky this week.
None of our chopper signals generated any trading system signals.
We also discuss the VWAP, XMA Ribbons, and Parabolic SAR and how the market seems to be in sync with those indicators. These are mean reversion strategies that have a short history (mid 2022) that I developed last Friday. They haven't generated many signals this week but did generate one short signal today in SIM mode.
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