Trading System Signals on 08/13/2025

The Nasdaq, gapped up to the 24,050 level, an area I thought would be a good afternoon target for yesterday's trade. The market likes to complete trends in the overnight session as we continue to witness. The market filled the gap and then chopped the rest of the day with about an 85 point range after the first hour of trade.

V-Reversal was the trade of the day, entering short, as the market moved lower and covering near the lows of the day, hitting its 100 point profit target. The second trade of the day was down 4 points on a near breakeven trade.

The bullish dip buyers protected the morning lows during the afternoon session. The rapid selling at 2:36 pm EST was quickly snubbed with obtuse and protective buying. "Just a little bit more" each day continues to be the bullish choir that eventually becomes "overdone".

Hypothetical Portfolio Performance

Stock Index Portfolio 18 = +$1,455

Two System Portfolio NQ = +$1,895

The VIX is back in the 14 handle and PPI, another inflation reading will be released at 7:30 am CST tomorrow. Unless it surprises to the upside (higher inflation than expected), it will be seen as bullish. Additionally, one of the things we see with bearish economic reports is a sell off, followed by a dismissive attitude towards the report, and then a reversal.

The stock indexes are due for a downside surprise and tomorrow's inflation number, if hot enough could pour water on the idea that the Fed will cut rates in September.