Tuesdays trade was a wide ranging reversal day while the markets waited for the resolution in the Strait of Hormuz. An entire news driven day can be more challenging as there can be reversals that defy technical setups. Instead of price action that resemble waves that have a rhythm or developing trends that continue, we see pulses that pop or surge in one direction or another, that become more of an asymmetric bet.
The anticipation of a resolution began in the last hour and the market surged early in the after hours with news of a ceasefire. Overnight as we go into Wednesday's trade, the Nasdaq futures are up 800+ points and the VIX has "gapped" down to the 20 handle.
Hypothetical Trading System Signals on 04-07-2026
27 System Portfolio NQ = -$15,465
Diversified Portfolio 57 (NQ Only) = +$1,795
Seven System Portfolio NQ = -$1,470
Stock Index Portfolio 37 = -$1,105
Stock Index Portfolio 18 = +$845
Two System Portfolio NQ = -$1,090
Silver Portfolio = +$2,700
50K Portfolio (Micros) = -$688 (without Gold and Silver)