50K Portfolio, 1 Micro SI 40 (HYPOTHETICAL) = +$500
200K Portfolio, 2 Micro SI 40 (HYPOTHETICAL) = +$1,000
(Based on open positions that can change by the close)
We did not take live trades today but are tracking the signals. By the close the results were approximately +$150 per micro with the final results posted in the Portfolio Calculator posted later today.
The stock market bulls love pandemics and war since they crave easy money policy from the Federal Reserve. Any event that would potentially create more stimulus or extend easy money can be a catalyst for a V Reversal as we have seen since the pandemic lows.
The Fed's balance sheet has expanded to all time highs which provides liquidity for reversal day's like today that wouldn't happen in a more natural and free market environment.
Russia's invasion of Ukraine has given the bulls hope that the Fed will hike rates less than expected and was a catalyst for today's rally.
The invasion could also create higher inflation so the idea that the Fed would hike rates less is a bit conflicting since raising interest rates is a strategy used to tame inflation.
It will be interesting to see if there is follow through or if the market rolls over once again. Either way, we follow our strategies which could take long or short trades in the evening session or tomorrow based on the current market conditions.
The Zig Zags were over 50 and the CVIX approached 2 today.