STRATEGY UPDATE | AUGUST 14, 2026

Trading System Signals for August 14, 2026

Stock indexes finished the week higher, but the move came through an unusually quiet, low-volatility environment. The VIX traded to its lowest levels of the year on Friday while index price action remained slow and compressed.

The 15 level in the VIX has acted as a floor several times this year, with volatility rebounding after testing that area. This week, however, the VIX slipped quietly below 15 despite elevated crude oil prices, higher interest rates, and continued debate over inflation data and how it is measured.

Despite the subdued market environment, the Diversified Portfolio 57 — including the 21-system NQ component — reached a new hypothetical equity peak on Thursday.

V-Reversal has also continued its recovery after moving near maximum historical drawdown levels in July. The strategy has produced a relatively steady rebound from those lows.

MARKET ENVIRONMENT

Nasdaq Consolidates After the Four-Day Surge

The Nasdaq remains roughly 900 points below its all-time high, while the S&P 500 reached new highs this week. The Nasdaq appears to be working toward its prior highs as well, but the path has become much less directional.

Nasdaq 100 futures have made little net progress over the last eight trading days after the massive four-day advance from July 30 through August 4. From here, the next move could develop as a continued low-volatility grind higher or as a faster breakout toward the prior highs.

DAILY REPORT

Hypothetical Trading System Signals for August 14, 2026

Results shown are hypothetical and do not represent actual client-account performance.

What We're Watching

After the sharp late-July and early-August advance, the market has shifted into consolidation rather than giving back the move. With volatility compressed and the Nasdaq still below its prior high, the next expansion in range may be more important than the quiet price action of the past week suggests.

Risk Disclosure: Hypothetical performance results have many inherent limitations. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Actual results may differ materially from hypothetical results. Futures trading involves substantial risk and is not suitable for all investors. Past performance, whether actual or hypothetical, is not necessarily indicative of future results. Drawdown figures are based on end-of-day calculations and do not reflect intraday drawdowns. Only risk capital should be used for futures trading.