(See Above) The market opened with a gap up this week and feigned a “Gap and Go” move to the upside only to fizzle quite quickly and leave us holding the bag. You can see how we caught a full stop out on the first trade of the day on that sudden reversal. Later as the market continued to sell down the system started getting us short. The 2nd trade caught 2 points of traction but we ran into short squeezes on each of the entries and you can see the final two trades short trades we got knocked out on trade failures.
(See Above) Tuesday ended up being a “Doji-bar” on the daily time frame for the general market. (See SPY) We pushed a bit to the upside.. pushed a little to the downside.. then stalled and flatlined the remainder of the session. We were able to catch a little traction on the first long trade. It was a lack-luster day with little price action to work with.
(See Above) The market shook things up a bit today and we saw some decent selling drive the ES lower. The system was all over it trying to get us short at every chance. It was another day of lots of short squeeze activity making staying in the shorts difficult, but we did manage to catch the one 5 pointer.
(See Above) Thursday we got a “Gap and Go” day and the system got us long into the up move, only it didn’t last long. We did though manage to catch the +3.75 points of traction before the market went limp on us.
(See Above) Friday ended up being the narrowest range day of the previous 17 days. The system tried to catch the one nice up move that occured early on but we were just a bit premature and caught a full stop out before the move could get going. We close up shop after 2 hours on Friday to do our Round-Table Group Training.
(See Above) We experienced another low traction week. It took an extremely nimble trader play this low traction environment and finish the week at Break-Even or better. Depending on which trades you caught and how you played them, you might have experienced a losing week. We are in the thick of the summer doldrums and the ranges and volatility have diminished substantialy. This is a market where you want to trade light and not push to hard. The markets will heat up again as they always do. You want to make sure you are still around when the giant wakes back up again.