(See Above) We have a good sized gap up this morning in the equity market following our 2 day breakout from the preceding week on Thursday/Friday. We got a “Gap and Go” move off the open to the upside and it was a slow going grind higher with low commitment and light momentum. We were only able to pick off 2 small low traction moves.
Tuesday February 14, 2017 – Fed Day – No Trade Alerts
(See Above) We experienced long range trend action to the upside and the system kept us long all session. Unfortunately the market moved higher in a very herky-jerky fashion much of the session and we ended up taking 2 full stops on volatility around our entry points. The first alert of the day gave us the best traction on the first good buying run of the day.
(See Above) Thursday the market took a rest break and attempted to pull back, but into lots of support and short covering so the down move was limited. The system got us into one good short for +3.75 of traction.
(See Above) Friday the market remained trapped in a chop-range for the first hour and a half of the session and then the sellers lined up for a breakdown which the system alerted us to but with limited follow-through. After the failed break-down attempt the market retraced back into congestion and went dull on us and we normally close up shop 2 hours into the session on Fridays.
Weekly Summary – Performance Stats For Week Of February 13th, 2017
(See Above) We had a mixed week with the market carrying higher several days after the previous weeks general market breakout. Tuesday was a Fed Day with a low momentum market that drifted higher through most of the session not triggering any alerts. Wednesday and Thursday the volume and the action picked up in the market and you can see how the system gave us plenty of action to work with on Wednesday. Thursday and Friday were one trade days due to the light momentum. In the end the system managed 3.0 times positive traction vs. negative traction. (We like to see at least 3.0 times positive traction)