Trading System Signals on 03/26/2025 - A Season of Short Signals?

The trading system signal of the day was Open Range NQ.

Here is a possible scenario to consider for the Stock Index Portfolios. We consider how the market responds after a distinguishable pullback. Typically, we see the market pullback and then rebound. The rebounds have become faster and faster in recent years. The pullbacks and first 10% lower might be choppy but the "face ripping rally" that comes after can generate some good trading system signals (more so than the choppy pullbacks). The rebound is what everyone expects.

This is what could be different but somewhat the same this time. If the response to a 10% pullback isn't a nice and tradeable face ripping rally, could it be a nice short selling market for another 10% lower? Today was one of those days to go short. If this scenario continues to unfold, it would be different in the direction (down instead of up) but the same in the nature of the market, good trading system signals, instead of the continued choppy sell off of the first 10%.

The Sibilance NQ v24 went to equity peaks today with short signals. We are waiting for a good drawdown entry alert to go live and did not trade the One Million MNS or 250K with Sibilance NQ v24 but were glad to see further validation with another equity peak.

The Stock Index Portfolio 11 hypothetical results were +$11,475 per E-mini and 1/10th per Micro to hit new equity peaks today.

The 50K Portfolio hypothetical results were -$1,180. We are releasing a new version of this portfolio and will update the Portfolio Calculator and subscription clients for the new updates this week.

The Two System Portfolio NQ hypothetical results were -$740 with three losing days in a row after equity peaks last Friday.

The Four System Portfolio NQ hypothetical results were -$1,810 with a drawdown of -$16.5K out of 28.8K max drawdown.

The new Five System Portfolio NQ was released on March 10 and hit equity peaks today with a gain of $10,085 hypothetical today. This portfolio has some "low percentage of winner" strategies that work to hit home runs. Cutting loses quickly and letting the trade run into the close can have a high percentage of losers with the potential for larger winners to make up for those loses.

Gap Continuation 2019 NQ and Open Range NQ were two of those today. It can be difficult to stay with those strategies through losing streaks especially if they are the only strategies in the portfolio. It is also not advisable to start at equity peaks but consider these types of strategies after a drawdown, in anticipation of a market that is poised to have some larger moves.