Trading System Signals on 02-26-2026

The three day trading range starting on Friday 02-20-2026 through Tuesday 02-24-2026 was a narrow channel on the daily chart. Over the years, you see narrow channel breakouts on one side of the channel and then a reversal and a breakout on the other side of the channel. The selling was strong today during the first hour until around 10:30 am EST, just one hour into trading (becoming a familiar pattern). The dip buyers worked to support 25,000 again in the Nasdaq and propped up the market. Tomorrow is the last day of the month and a breakout to the downside of the channel could take the Nasdaq to the lows of the month and the year.

If the market closes on the lows of the month and the year tomorrow, it could be a wakeup call for the bulls to "manage risk".

NVDA surged yesterday in the after-hours but failed to trade above the previous earnings surge. Profit taking on skepticism and over valuation seems to be the sentiment. NVDA is a heavily weighted index component that can drive price action in the stock indexes.

We discussed a pattern earlier this month based on the limited afternoon range extension. This pattern persists and this week, we are seeing a day's worth of price action in the first 30-60 minutes with no follow through in the afternoon. This is a market pattern we see over the years that is typically rare and more brief when it does happen.

The market remains in a range since October 2025 and is in a mode where it is trading against a breakout of the range. The last few days have been more favorable for our trend-based strategies and we have seen a jump in the portfolios. We will continue to monitor the market for a greater intra-day trend component.

I look forward to tomorrow's trade. It will be a last day of week and last day of month trading environment.

Hypothetical Trading System Signals on 02-26-2026

Diversified Portfolio 57 (NQ Only) = +$17,485

Seven System Portfolio NQ = +$3,705

Stock Index Portfolio 37 = +$16,765

Stock Index Portfolio 18 = +$19,510

Two System Portfolio NQ = -$830

Silver Portfolio = +$4,700

50K Portfolio (Micros) = +$579 (without Gold and Silver)

The Top Strategy that we are not trading is the SR Breakout. It takes advantage of the quick trade and a strategy that we would like to add when the risk profile gives us an advantage.

Here is a screenshot of recent trades.