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Live Trading System Signals on September 14, 2022 - Extreme Prop and Chop


The market turned into extreme prop and chop mode ever since yesterday's close, putting the brakes on yesterday's downward momentum. We typically see the prop and chop machine that comes in around noon on days that the market sells off. It was working overtime today as the prop and chop started at yesterday's close, creating an unnatural looking price pattern in the market.


The price action was difficult to trade and we gave back a lot of yesterday's gain after hitting equity peaks yesterday.


The 200K Portfolio was down on the day -$4,500 and the 50K Portfolio was down -$1,125.


During the afternoon, the market sold off from around 12:00 noon to 2:30 pm CST hitting our final long stop loss before spending 30 minutes rallying all the way back to the starting point of the 2.5 hour sell off. Often times when the market is "propped up", it sells off the following day.


The Fed's balance sheet for this past week comes out tomorrow. It will be interesting to see if they are working towards their commitment of reducing the balance sheet by $95 billion per month or if the Fed is all talk.


Inflation and the Fed are the two biggest factors in the fundamental trend. Their excess balance sheet seems to have given the stock indexes opportunities to go up on day's when it would normally go down.


On the inflation front, we could continue to see higher CPI reports as Natural Gas was up another 10% today and Crude Oil was up nearly 2%. I anticipate these markets to continue to rally.

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