(See Above) Monday the market remained trapped below the 2291.00 level early on. The longs attempted to break the market out higher a couple of times but eventually succumbed and the sellers took control. We had to be patient but eventually the system caught us a light short for 3 points of traction. Our goal on Mondays is to dip our toes back in the water after the weekend and score a few points of risk capital for more aggressive trading on Tuesday.
(See Above) Tuesday we had a small gap up at the open which the buyers tried to run with for a “gap and go”. The early bias was to the upside and the system kept us long for 3 breakout attempts but the buyers could never follow-through. We took a full stop on the final trade before the market eventually rolled over and fell back into chop.
(See Above) Wednesday was a bit of a strange day as we ended up getting a melt-up on low volume and weak momentum. It was tough to get any good traction as the market ground higher.
(See Above) Thursday ended up being a semi long range day up and the system caught us a nice 6+ traction move. If you take a look at the daily chart for the SPY you will see how the general market was finally able to break out weeks of congestion.
(See Above) Friday light traction and we only stick around for 2 hours. Light volume light momentum. We only got one alert which we ended getting a trade failure alert on to scratch at B/E.
Weekly Summary – Performance Stats For Week Of February 6th, 2017
(See Above) The recent low-volatility sideways market action didn’t give us a whole lot of momentum to work with. Overall it was a confused choppy market until Thursday where we had a decent long range up day. That was the only day we were able to catch any good traction. In the end the system only managed 2.9 times positive traction vs. negative traction. (We like to see at least 3.0 times positive traction) A cautious steady trader still ended the week positive but it was a slow grind most days other than the Thursday run-up.