Trading System Signals on May 3, 2022 - Pre FOMC Chop and Bullish Prop Up


50K Portfolio 1 Micro SI 25 (LIVE) = -$500

200K Portfolio 6 Micro SI 25 (LIVE) = -$2,850


1 out of 3 S&P strategies were profitable today

2 out of 6 Nasdaq strategies were profitable today


It was a very choppy pre-FOMC session. The bulls really want to step in here and move the market higher. The perma bulls are desperately craving validation. It is interesting see so much bullish sentiment here in the midst of bearish fundamentals.


It is based on cycles around QE and easy money and the ability of the bulls to catch falling knives and create V bottoms like heroes (with the help of the Fed).


This sentiment creates a text book bearish opportunity since market sentiment seems really bullish and being a bear is contrary to the sentiment that i am seeing. The bearish fundamentals are obvious and Paul Tudor Jones gave us a very bearish outlook today for stocks and bonds.


When is the last time the market was able to go up on its own?


Every time the market gets to this point in the cycle, it waits for the Fed to provide easy money stimulus to move the market higher in a state of jubilee. Unless the Fed pivots, its different this time as the Fed is scheduled to decrease the balance sheet by $95 billion per month and raise its Fed Funds rate by 0.50%. Bitcoin sold off today. Bitcoin has been a leading indicator for stock indexes.

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