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Capstone Trading

Trading System Signals on January 19, 2022 - Nice Short Trades Marko Kolanovic Dip Buy Fails


200K Portfolio = +$3,500

50K Portfolio = No Trades


The Marko Kolanovic Dip Buy from a week ago this past Monday gained some traction last week but the market has rolled over since his call. We took nice short trades today as the market took out last weeks lows. Its possible this is a double dip and the market could move higher but I think we are seeing a slow bear market with tighter money policy on the horizon. Unless the Fed switches back to easy money, the market will be "soft". We could see a slow bear market turn into a more rapid bear market as well if the Fed continues to clarify that monetary policy will be tight.


In 2018 we had the taper tantrum. The market was determined not to end 2021 the way we ended 2018. But Q1 of 2022 could turn into the 2018 Q4, taper tantrum if inflation continues and the Fed stays with tighter policy and does not reverse. 60 Minute Breakout Short E-mini S&P has gone 8 for 10 shorting the market since last Thursday. The dip buying call last Monday falsely ran prices up and gave us some good opportunities to short it back into its path. We have one trade we are holding overnight - Crude Oil Swing. We are flat all other markets and are ready to take long or short trades for tomorrow's trade.

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