STRATEGY Update | July 2, 2026

Steep Sell-Off on July 2, 2026

V-Reversal captured two short trades yesterday.

Momentum Reversal 2022 in the Stock Index Portfolio 18 had the biggest short on the day. The first trade was stopped out while the second trade had a nice short into the close.

Thursday's trade turned into a steeper than expected sell-off. The new month and new quarter have started out more bearish that I would have expected. Making forecasts is difficult and why we go with our trading systems instead. After the sharp rebound on Monday, it looked like one of those melt up holiday weeks. The profit taking in the semiconductors weighed on the Nasdaq 100.

The stock market is closed today and the futures are open for a brief session. We don't trade on days when the stock market is closed or closes early.

Below are the hypothetical trading system signals from July 2, 2026, the objective is to maintain a repeatable framework that can participate on both the long and short side while controlling risk over time.

Hypothetical Trading System Signals on 07-02-2026