Trading System Signals on 08/12/2025

CPI came in as expected and the market saw it as bullish. We have seen this before. The market looks for inflation to cool off and when it does not, it dismisses the data for future data. The beginning of the trading day was very volatile and choppy and the strategies were down but the afternoon rally allowed some "catch up". PPI comes out on Thursday. Unless PPI is much higher than expected, the market will look for a way to spin it as bullish.

This has to be one of the most persistently choppy rallies that I have seen with constant sharp pullbacks that can serve as stop runs on day trade algorithms. The market typically changes its mode between pullback and rally, and breakaway rallies. We have yet to see many breakaway rallies as we are nearly within 1000 points from the Nasdaq 100 hitting 25,000.

The hypothetical results for the Portfolios are

Stock Index Portfolio 18 = -$45

Two System Portfolio NQ = -$1,800

With technical issues, I had some additional loss and was down about -$850 per E-mini, trading 3 per One Million on the One Million MNS.

I released the Portfolio 57 that will offer more diversity beyond simply the E-mini Nasdaq.

V-Reversal was stopped out today getting in late on a short after a fast move lower but the Gap Continuation did re-capture a portfolio of the loss in the Two System Portfolio NQ. The way the market has moved around this CPI release generated a challenging trading cycle the last two days.