We stepped aside after a runup to avoid the chop on days like today. We track the signals and are waiting for a good entry point to start live again. This gives us the ability to measure and manage risk so that we give back less gains during the inevitable drawdowns.
The One Million MNS 123 hypothetical signals were -$9,285 which translates to -$1,857 in the 250K Portfolio managed since the 250K Portfolio trades 20% of the One Million MNS 123.
The Stock Index Portfolio 18 was -$2,855 today in hypothetical signals based on the E-mini.
Both portfolios were at recent equity peaks so it makes sense that they would go through a drawdown cycle right now.
Waiting for a drawdown is ideal and gives a good entry point to start trading live or add to positions to reduce the risk to worse case drawdown.
There are more economic releases the last two days of this week, which will also be the last two days of this month and this quarter. The presidential debate is tomorrow night. Federal Reserve policy usually affects the stock market more, longer term than the president, but the debate may generate some volatility.
The VIX closed at 12.55 today and continues to get crushed every time Volatility starts to trend higher. Volatility won't stay in the box forever.
The PCE is Friday morning in the pre-market. The PCE is the Federal Reserve's favorite inflation indicator and could generate some big moves or some big chop.
On Friday, we close the week, month and second quarter of 2024 to mark the mid-point on the year. It could end in a bang, with the PCE, before next week's holiday shortened week that includes Thursday's July 4th holiday, when the market will be closed for Thursday's trade.
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