Live Trading System Signals on May 28, 2024

There were no Gap Continuation trades today. We discuss the portfolios and markets below.

Today was one of the choppier trading days we have seen in a while. The markets have been choppy the last seven days in general with range bound price action with a slight uptrend. The excess liquidity in the markets has taken away the natural ebbs and flows we saw in prior decades. Instead, we have many consecutive up days and fewer and fewer natural pullbacks and shallower and shallower dips. The markets continue to remain propped up on excess liquidity from years of QE.

Today, the Nasdaq established the open range, ran up to the highs, reversed to the lows and then ran to the highs again at the close. It is the type of stop running price action that makes you question the ethics of the market making.

The One Million MNS 110 was down -1.75% today and the 250K was down -$3,600. We were sitting at the breakeven level for the month coming into the trading week. We are down about -1.4% on the month and up about 4% on the quarter. There are 3 trading days left in the month.

The Stock Index Portfolio 18 was down -$3,835 on the day. The VSD NQ 2024 captured a Memorial Day holiday trade of +$1,380. If this trade wasn't taken, the Stock Index Portfolio was down -$5,215. Any trades taken starting on Sunday night are part of Tuesday's session.

The market typically has some more natural pullbacks at these levels and at this time in the cycle. The bulls, empowered by excess liquidity, don't want to give up any significant pullbacks. It also appears momentum for higher prices has stalled. This has created some chop. The resolution for chop is usually a breakout in one direction. It will be interesting to see if we get a breakout before the end of the month so that we can capture some good trades.

We continue to remain optimistic about our research and potentially adding markets such as Cocoa and Bitcoin in June.