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Capstone Trading

Trading System Signals on 12/12/2023



The portfolios had one of their best days in a while. Even though CPI came in higher than expected, the market rallied. We did release two new portfolios today. 


The 250K is setup to trade the new Portfolio 51 on the next good drawdown entry point. It was up $8,227.50 today. It is validating to continue to see the strategies perform.


The new Stock Index Portfolio 27 was up $3,195 while the Micros took the same trades for +$303.75.


The market is doing what we thought it would do by taking out the highs on the year in the Nasdaq. The all-time highs based on the futures are only about 1100 points away. Since we are 2200 points off the lows, another 1100 point rally by December 29 is certainly possible. I certainly didn't think the markets would contract in volatility to these levels as the VIX hit the 11 handle today. 


CPI was slightly hotter than expected but the market rallied anyway. It's that time of year and the reason it is called the Santa Claus rally.


When inflation was increasing, one downtick was considered the peak. When inflation is decreasing, one uptick is dismissed. Inflation is at 4% and the Fed wants 2% inflation. The market has priced in 4 rate cuts for 2024. Earlier this year the market was pricing in 3 rate cuts by the end of this year after the Silicon Valley Bank news.


We go into more details in the video for the trades on the day and our strategy.


The shift in volatility has been quick and we are still adjusting. 


Tomorrow, we get FOMC.

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