Wild reversal today before Job's Friday. We were initially short and flipped to the long side in the afternoon. The S&P 3900 level right at 12 noon CST seemed to be the playbook for the bulls buying the dip today.
Momentum Reversal was the trade of the day capturing the move in the S&P and Nasdaq. We needed more contracts on Momentum Reversal. This strategy has been a diverse strategy and an asset to our Stock Index Portfolio 26 setup.
The 200K Portfolio was down -$1,175 and the 50K Portfolio was down -$400 today on the first trading day of the month. Some automation errors in our favor worked to the benefit of the 200K Portfolio with results that were better on a per micro basis than the 50K Portfolio.
This price action is difficult to navigate and trade and we managed our risk well on a difficult day. Tick Reversal was 2.5 points away from its profit target before the market reversed.
We go over all the stock index futures trades as well as the commodity trades. Soybeans and Copper are the main two markets that are trading right now.
The fundamental trend is difficult to navigate as interest rates continue to move higher. The Bond market sold off and interest rates moved higher today There is a China lockdown and quantitative tightening. Commodities are dropping but that could indicate a recession. The Feds balance sheet dropped 25 Billion last week and about 140 Billion from its all time high (which isn't much).
The desire to go long at 3900 on an oversold market assumes an uptrend in the stock market. That is a big assumption.
Comments