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Trading System Signals on 06/06/2025

Jobs Friday generated a "gap up" in the stock indexes. I believe it was more of a mean reversion from yesterday's sell off. The stock indexes spent the day chopping in a relatively narrow range while the 30 Year Bond sold off in a classical head and shoulders pattern on the 60 minute charts. Just last week Jamie Dimon spoke of a crack in the Bond market.



There is a big call for the Fed to cut the Fed Funds rate but the risk that long rates could still move higher persists. It is an interesting dynamic.


The weekly cycles for our trading system performance, at least in the short term, seem to be rotating towards more favorable price action early in the week instead of later in the week. The drawdown the last two days has generated a good drawdown entry alert in the Stock Index Portfolio after equity peaks earlier in the week on Tuesday and Wednesday. The early week cycle could be a good opportunity to start, re-enter, or increase position sizing on Monday.


The chart below shows the one loss today on V-Reversal. The market was in a higher high, lower low, divergent trading pattern today.



The One Million MNS and 250K Portfolio stayed on the sideline today waiting for a drawdown entry alert. The opportunity to sync up with the strategies will be there for Monday's trade after today's drawdown entry alert.


The hypothetical results for the portfolios are below.

Stock Index Portfolio 18 (1 NQ) = -$9,360

Stock Index Portfolio 18 (3 NQ) = -$28,080

50K Portfolio = +$190

Diversified Portfolio 42 = -$8,015

EMINI NQ 2 System Portfolio = -$910

EMINI NQ 3 System Portfolio II = -$3,245

EMINI NQ 4 System Portfolio = -$3,245

EMINI NQ 5 System Portfolio = -$2,660


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