Melt Up, Short Covering, Rally Mode - Live Trading System Signals on July 7, 2022

Nice gains today. The 200K Portfolio was up about $7,000 and the 50K Portfolio was up about $1,750 on the day.


I am fighting a minor case of Covid today, so I don't have a video to post.


This is the melt up price action we have anticipated. Early on in my trading, this is the type of market that looked weak and I would put on discretionary shorts and keep doubling down - with no relief and painful results.


I've been able to recognize the subtle nature of this type of price action after being on the wrong side. It is stealth and tricky with a discretionary approach. Technically and systematically, these types of days are easy with trading systems.


Psychologically, these types of days can be challenging when many strategies put on long positions at the same time. With the recent price action, it "feels" like it will roll over (and sometimes it does) and quickly erase your gains on the day.


Recognizing this "mean reversion" against both shorts and counter trend traders didn't change my strategy, but made it easier to stay with the long trades into the close.


Tomorrow's is jobs Friday. Next Wednesday is CPI. Still waiting on the the latest Federal Reserve's balance sheet data that should be posted shortly.

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