Last Friday, the bulls ran Warren Buffet "out onto the field" to promote stocks with his massive purchase of Apple stock. The volatility crush is back on with the VIX dropping 5 days in a row as the buyers wait until any sell stops or sell programs come into the market to go long. The S&P futures made its high at 2:15 pm EST, almost 2 hours before the close and the NYSE TICK high was only 713 while the S&P futures were up 1%. This is the type of price action that the bulls use to make stealth moves to new highs. Low volume, low volatility, and price action that looks like a market that is about to rollover can be a buy signal if VIX is low.
Tick Count Trend II was the only strategy to trade today as the market looked weak early based on the NYSE TICK. This was a trap and our shorts did not work today as the market melted higher.
SR CounterTrend II did not trade today and has not traded this week except for a break even trade yesterday in Soybeans. I anticipate more volatility in the commodities and potentially lower VIX readings below 10 and the stock market moving to new highs once again. The selling came before May so I don't believe there will be a sell in May this year.
We are back to a market environment where we have to be careful taking short trades.
The results below are hypothetical results based on the trading system signals. We trade the strategies and portfolios but we don't trade all systems, all of the time, and do use some discretion when determining which strategies to trades. We also do take additional discretionary trades. Some of the trading system trades shown may be taken while other trades may not be taken, based on our discretion. For this reason, the information here should be considered informational and educational and can represent how our trading software operates on different platforms.
For the purpose of this blog post, since we do use discretion in our live trading: All trades presented are NOT LIVE TRADED IN A LIVE ACCOUNT and should be considered hypothetical.
Tick Count Trend II E-mini S&P = -$800
Portfolio Results on 05/09/2018
25K Portfolio = -$800.00
100K Portfolio = -$800.00
One Million Dollar Portfolio = -$800.00