Live Trading System Signals on October 27, 2022 - Massive Divergences in Market Internals & Indexes


There were massive divergences in the market internals both yesterday and today with the most heavily weighted Nasdaq 100 stocks reporting earnings. Meta was down 25% today. Amazon is down 23% in the afterhours and APPL just reported and is back and forth but down about 4% at the moment.


The Dow was up today at one point+300. We have turned our focus towards strategies that use market internals since they have the most stable history. The last two days, the market internals have had some extreme divergences that have challenged our strategies.


Our strategies are day trade strategies. Most of the trends lately are happening in the pre-market on economic news or after hours on earnings news.

We are down 3.1% on the month in the 200K Portfolio with the 200K losing -$4,500 today and the 50K losing -$1,450 today. The hypotheticals are -$4,495 and -$1,348 respectively.


Today the market was mostly propped up as the market continues to anticipate better than expected results on economic news and earnings releases.

Friday's have the tendency to be one of our best trading days, especially after a losing streak.


The bulls will try to make a bullish case and could reverse the market the way they did on the CPI. The bullish case that the perma bulls tend to make is not usually reasonable (lately and in my opinion) but can be backed by a lot of liquidity. We are also coming into the end of the month so it is possible we could see a reversal rally tomorrow as the liquidity will be energized by "Peak something".


I'm all for a massive day trade rally even if it is based on a false narrative.

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