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Trading System Signals on June 6, 2022 - Six Days Range Bound Action

Capstone Trading

50K Portfolio 1 Micro SI 25 (LIVE) = -$450

200K Portfolio 6 Micro SI 25 (LIVE) = -$2,700


1 out of 3 S&P strategies were profitable

2 out of 8 Nasdaq strategies were profitable


3 out of 11 of our strategies were profitable today


Six days in a row of extremely range bound price action. The price action today looked almost exactly like Friday. It is unusual to have random prop up price action look that similar and for the results to be the same. Two days in a row where we have seen prop up price action at the same levels. There is a lot of liquidity that wants to call a bottom here while at the same time, the same crowd that said, "Don't fight the Fed", is fighting the Fed pretty hard.


The market should trade lower longer term and more so once Quantitative Tightening (QT), a reduction in the Fed's balance sheet, persists. We are also mindful of the fact that the Fed could pivot its monetary policy, but believe that stocks would have to trade 10-20% lower first since inflation is still a factor.


This Friday's CPI report is highly anticipated.

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