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Capstone Trading

Trading System Signals on May 1, 2024



Today was the first trading day of the month and included an FOMC Day. The market was pushed significantly higher, reminding me of the November 1, 2023 FOMC price action. At the end of the day, the stock indexes moved back to the lows of the day. It was a sloppy day with a thin order book.


We measure this with the Market Depth Indicator.


This is the reason we don't trade on FOMC. Sometimes it can be a profitable day. Our data shows that it is more profitable to sit out FOMC Day longer term.


We have not hit a drawdown entry alert yet but we may hit that tomorrow. The latest results for the portfolios were updated through April 30, 2024 in the Portfolio Calculator. Since we zero out Fed day results since we don't trade on FOMC, the results from yesterday also apply to today.


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