Trading System Signals on May 11, 2022 - Hot CPI and VIX Divergence


50K Portfolio 1 Micro SI 25 (LIVE) = -$725 200K Portfolio 6 Micro SI 25 (LIVE) = -$4200


1 out of 6 Nasdaq strategies were profitable 1 out of 4 S&P strategies were profitable


CPI was hot today and inflation remains persistent. They like to run the market up on high inflation citing "peak inflation". Today it turned into an extremely choppy rollover.

The biggest divergence was that VIX was down when the market was down. This could be bullish for tomorrow's trade.


The Advance Decline line had some wild swings between +/-1000.


Incredible amount of denial in the market still. Sentiment is still too bullish. You see it in the market as the dip buyers keep trying to be the first to catch the next V Reversal, creating choppy market conditions. The dip buyers took a break in April but have come back in at the beginning of May. I think the dip buyers have to go away again and the market has to return to its longer term trend line.


All of the FANG stocks are now in a bear market - down 20% off their highs. The S&P 500 is still not in a bear market.


It should be easier to have more day trade shorts in a bear market. We haven't had much of a sustained season of good short trades in this bouncy down trend.

The stable coin crash is indicative of some margin calls in the market.

4 views0 comments

Recent Posts

See All