I am pausing trading right now. The chop to trend ratio is more extreme than it has ever been. Ever since our massive runup on May 26-27th, the market has countered nearly every trade we have taken and has worked to “get it all back”. I don’t trust the predatory nature of the market as the trends are at night and there is nothing but stop running chop intra-day.
Nearly every long and short strategy is getting stopped out.
We are preserving capital and gains on the year while we wait for resolution in the market and the FOMC announcement on Wednesday.
In the bear market of 2022, we have yet to see a real cycle where there are sustained intra-day down trends. There have been so many bounces that we haven't even seen the beginning of real selling in my opinion and stocks have much lower to go.
200K Portfolio = -$7,300 50K Portfolio = -$1,100