50K Portfolio 1 Micro SI 25 (LIVE) = -$960
200K Portfolio 6 Micro SI 25 (LIVE) = -$5,750
*Still one open position on a long trade
Extreme wide ranging chop today. It looked like the market would have a healthy pullback today. (It should have a healthy pullback today) The bulls stepped in on numerous negative headlines to buy the intra-day dip and defend against any pullbacks.
We gave back half of Friday's gains back in a wild news headline driven market.
A couple of notable headlines that were dismissed:
1.) Powell said "inflation is much too high" and noted that rate hikes could go from the traditional 0.25% to 0.50%
2.) Russia said that relations with the U.S. are on the verge of rupture.
3.) Crude Oil is up 7.6% at 110.93 on the May futures contract.
4.) The two year is over 2%
News out of Ukraine remains negative. The Fed speak from Rafael Bostic and Jay Powell was very hawkish and made headlines. The market shrugged it off and used those headlines as dip buying opportunities.
Paul Volker raised rates to 20% in June of 1981 to get ahead of inflation.
There were a lot of bulls that got together last week to drive the market up. They came in to defend it today. The fundamentals look more bearish to me but the easy money is still in the market to drive it up with the Fed balance sheet close to $9 trillion and the fed funds rate at 0.25%. We continue to follow our strategies for long and short trades. It has been an unusual time period to see so few open to close down trends. I still believe we are due for a cycle of more down days and some capitulation to the downside.