Trading System Signals on 02-05-2026

The Nasdaq futures traded down to yesterday's low in the overnight session, signaling the over aggressive afternoon rally during yesterday's day session. The dip buyers spent the day propping the market up, but by the end of the day the market rolled over towards the early session lows with selling accelerating in the after hours. It was a very choppy session as the Nasdaq 100 settled well below the 25,000 level. Bitcoin continued its slide lower, while Silver was down over -10%. The VIX looks like it is building up momentum to break through 25.

If there is a bear market forming, it is the slowest developing bear market that I have seen.

Some of the shorts today, mainly Cobra III strategies were stopped out with 60-70 point stop losses. We needed a 130 point stop loss or approximately twice the amount to stay with a trade that would have been a big difference on the day. Less than 100 points is a small move in this environment. We are seeing some one minute bars that span 100 points in the E-mini Nasdaq.

We are in a market where the percentage of winners will drop when ranges expand but will give us the opportunity, once it breaks sharply in one direction, to capture a home run trade, if we can get a decisive move that separates from the entry price (lately there is a lot of noise around the entries).

Last April there was an 1800 point day in the Nasdaq. Just 1/3rd of that move with 3-5 strategies would be a nice day.

Live trades are experiencing more than average slippage lately.

Hypothetical Trading System Signals on 02-05-2026

Diversified Portfolio 57 (NQ Only) = -$10,100

Stock Index Portfolio 37 = -$11,950

Stock Index Portfolio 18 = -$1,525

Two System Portfolio NQ = -$745

Silver Portfolio = +$34,325 (still an open position short)

50K Portfolio = -$294 (without Gold and Silver)

Silver had some large moves and while we post the hypotheticals since these strategies are in the portfolio calculators, we are not trading them live. Stop and market orders are rejected in an illiquid order book and the daily dollar ranges are too risky. Silver Breakout B has a big open position profit of +36K on the day. This market has to be constantly monitored and traded with limits. Stop orders (stop losses) can be rejected and recently, the daily dollar range in Silver futures exceed $200,000. If you trade the Silver market without constant monitoring, you could lose that amount and more per contract if an order is missed.

They portfolio calculators still include the precious metals since updating these will take some time. The portfolio calculators can be filtered to only include the E-mini Nasdaq.

In May 2010, a similar scenario unfolded in the Flash Crash. While the dip buyers seem to have an infinite amount of liquidity, there could be a point where they do run out of liquidity, margins calls could hit, or the bids disappear for any reason in a continuous sell off. Its important to make sure you monitor your positions closely as market orders and stop orders can be rejected and must be manually managed or you could end up with a huge win or a huge loss.

Its been a while seen we have seen real capitulation. For this reason, leverage has probably trailed its way up closer to the market than what we have seen historically. A normal pullback could generate price action similar to August 2024.

Tomorrow is Friday and the last trading day of the week as we go into a Super Bowl weekend, and typically a "feel good" time of the year for the stock market. With so many assets dropping this week, one bullish rule to watch is: The first quarter of the new year should not break the lows of December. This has already happened in the Nasdaq 100 and the S&P 500 is not far away. 6720 is the level to watch with a close of 6798.18 today.