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Trading System Signals on January 26, 2022 - Hawkish Fed and Flash Crash Warning

Capstone Trading

One Contract on Micro NQ 20 for the 50K Portfolio (LIVE) = -$250

Two Contracts on Micro NQ 20 for the 200K Portfolio (LIVE) = -$2,600

(had to exit 200K Portfolio positions in ES and GC that were held from the previous session and missed big winner right at open of session on VSD NQ so results worse than hypotheticals)


50K Portfolio (HYPOTHETICALS) = -$1,450 (what we were trading)

200K Portfolio (HYPOTHETICALS) = -$6,075 (what we were trading)


Today we did better by scaling back.


The market continues to be "broken" so we continue with our theme - trade small or not at all.


The price movement is absurd. I've never seen so much propping up. The Feds excess liquidity continues to distort real pricing in the market. The FOMC meeting was "slowly" hawkish and much less hawkish than many economists believe the Fed should be to control inflation. The market was similar to Monday in the Nasdaq as it continue to rally even though there was more selling volume.


There is so much energy trying to hold the markets up to maintain investor confidence - as you can see it in the tape. If we trade below Monday's lows, watch out for more accelerated selling and even flash crash price action along with increased brokerage margins. As a trader we have to trade what is instead of what should be and price is the ultimate indicator. Trade small or not at all when the market is this unusual. Additionally volatility is wild and 30 point stop losses are more and more random.

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