Trading System Signals on 08/04/2025 - 14 of 14

The market pattern in the stock indexes was similar to Friday's pattern in the opposite direction. On Friday, stock indexes gapped down and sold off and then became increasingly choppy with little follow through to the downside, beyond the morning lows. Today the stock indexes gapped up, rallied, followed by very narrow range, and then rallied and made new highs into the close, exceeding the morning highs. The price action today to recover Friday's sell off speaks to the resilience of the current rally and liquidity flows. Seeing the inverse of the same pattern but slightly stronger on the long side also reveals the strength of the trend.

The strategies were mostly long today to capture the move higher.

Hypothetical Performance Summary

Stock Index Portfolio 18 = +$6,615.00 per E-mini

Two System Portfolio NQ = -$797.50 per E-mini

The gains today in the Stock Index Portfolio 18 were enough to hit the 14th month in a row where the Stock Index Portfolio 18 was profitable from the 21st calendar date through the second trading day of the following month. The gains were small during this cycle with recent lower ranges.

On Friday the streak from consecutive days where the average range of the last 5 days was less than 1% was broken with the streak ending on July 31 at 24 consecutive days. I am looking forward to a continuation of the range expansion with price movement in either direction for both long and short trades. The long side has been easier for the last few months, but the market can flip its mode and there can be a nice season for short trades at any time.