Trading System Signals on January 5, 2022 - Big Shorts on FOMC Minute Hawkishness


200K Portfolio = +$4,000

50K Portfolio = -$650


Gap Continuation NQ 2019 hit a big short for +$6,400 in the 200K Portfolio. One of the hardest things to do in trading is to hold a position that has a bigger than average winner until the system says to close it. We are used to our shorts getting "taken" from us or much of the gains taken back. We were due for this trendy sell off (and much more.) I believe we are due for much more selling and the Feds hawkishness in the FOMC minutes give us the frame work for a more two sided stock market.


As traders we like two sided markets.


The markets have been propped up on Fed liquidity/stimulus for a while. The tone could turn bearish and a 20-30% sell off from the highs would be normal considering the runup we have had. Watch your risk management and position sizing. Brokerage margins could increase, especially if there are some limit moves.

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