The stock indexes are back in low VIX melt up mode the last two trading days with two gap up continuation days. The smooth gap up continuation day has started to cycle back into the market. It was a strong pattern for a couple of years but started to become less reliable in the middle of 2023. The current portfolios don't depend on that pattern as much but still take advantage of it and did well today.
We did not trade live since we like to wait for a drawdown entry alert to reduce account volatility even if we miss some runups. The hypothetical results for the One Million MNS was up about 1.8% on the day or +$18,000. The hypothetical results for the 250K Portfolio was +$3,600 today while the hypothetical results for the Stock Index Portfolio 18 was up +$8,070.
We paused trading after two equity peaks in a row on Friday, April 26th. The 250K hypothetical results are up $6,600 the last 6 trading days after 2 losing days, 1 FOMC Day, and 3 winning days. I am anticipating some chop the next couple of days based on the normal cycles we see in the market.
It will be interesting to see if the stock indexes just tested the annual closing prices and will now move back to the highs on the year or if there will be some resistance before the stock indexes reach the highs.
All week long, there are not any 7:30 am CST/8:30 am EST economic reports which is unusual. This could generate some smooth trends. There will be other news events, Fed speak, earnings and economic reports at 8:45 and 9:00 CST this week that could generate some more unpredictable price action.