(See Above) Monday the buyers made a light attempt to run the market higher but remained stuck below the 68-69 resistance level. The market moved around in aimless drift the majority of the session around equilibrium levels with the big participants waiting on the president speech to congress tomorrow on Tuesday. System gave us 2 long alerts which had limited follow-through to work with.
(See Above) On Tuesday the market remained stuck in a range for the first 2 hours but with a slight bias to the downside. The system alerted us to a nice down move to support which gave us +5.5 points of follow-through. Market still on hold for speech to congress tonight.
(See Above) Wednesday we had a massive gap up at the open in the equity market one day after the Presidents speech to congress which lit a fire under traders and we witnessed a powerful “Gap and Go” Accumulation day where the price starts in the lower left hand corner of your chart and goes up at a 45 degree angle all day to end the session in the upper right hand corner of your chart. Wrong footed shorts help squeeze the market higher on days like this as well as they “buy to cover” to exit losing positions. The system had us long the entire session picking off 2 nice high traction moves for us.
(See Above) Thursday the market opened in the middle of Wednesday’s range and faded lower as profit taking set in after Wednesday’s massive run-up. The system kept trying to get us short but the high short squeeze action kept popping the market back against us. We finally caught some decent traction on the third attempt.
(See Above) Friday buyers attempted to run the market early on but quickly met strong resistance and the bias turned back to the downside. The system caught us a decent short of almost 3 points of traction before the market retraced back into congestion levels and began to fade. We normally close up shop 2 hours into the session on Fridays to lock in gains and prevent “giving it all back” unless there is a rip-roaring trend in progress.
Weekly Summary – Performance Stats For Week Of February 27th, 2017
(See Above) If you take a look at the weekly summary graphic above we got a symmetrical “Bell Curve” pattern for the week. Light action building to the middle of the week on Wednesday after the President speech to congress where we witnessed a long-range up day. Then the action tapered back down to go out in a whimper. The trading action is still light if you count the number of alerts we received but we experienced better follow this week on many of the trades with some super high traction on Wednesday during the strong accumulation up day. In the end the system managed 4.7 times positive traction vs. negative traction which gives us an excellent edge to work with. (We like to see at least 3.0 times positive traction)