Trading System Signals on May 18, 2022 - Short Selling the Nasdaq 100 and S&P 500 Futures All Day


50K Portfolio 1 Micro SI 25 (LIVE) = +$2,650 200K Portfolio 6 Micro SI 25 (LIVE) = +$14,500


3 out of 3 S&P strategies were profitable 6 out of 7 Nasdaq strategies were profitable


After three days of choppy market conditions and the bulls trying to call a bottom, we had a healthy sell off with the market working to move back towards value. The pattern in the S&P and Nasdaq futures was a gap down and continuation move.


9 out of 10 of our strategies were profitable today.


Fed policy and economic conditions have changed with WMT and TGT earnings shocking the market. The bullish sentiment is starting to fade some but it seems that we still have much more downside and we had some real selling today, but certainly not capitulation or a bottom in my opinion. We are flat at the end of the day and trade it either way tomorrow.


I love the bullish statement, "Never bet on the end of the world, it only ends once". If you are a long term investor, it might serve you well, but as a short term trader it sounds manipulative as if there is never a reason to sell. The market can sell off, crash, and stay down for years.


Fed policy in the form of Quantitative Easing seems to have created a recency bias that the market always goes up. This "pullback" is more and more surprising to the bulls. Bear markets exist in freely traded markets.

The market sell off today isn't as big as it seems when you consider the fact that the market should not have rallied yesterday.


The Fed's hawkish statement and Wal Mart earnings should have generated this type of selling yesterday. There was a concerted effort to be contrary and drive the market higher yesterday and today the market traded all the way back down to Thursday's range, a place from which it should not have bounced in my opinion.

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