The Jackson Hole symposium did not seem to disappoint: Euro Stoxx 50 futures have gained about 100 points since then, so the market is reading that the Fed is likely to be dovish sooner than later. Nvidia sold off a bit post its quarterly report. My headlines continue to talk about war in Ukraine and the Middle East, and now the US election seems to pop up more frequently.
I am not sure what’s driving the market higher: but it appears to me that the grind higher is the pain trade.
This is the first part of my proprietary, composite momentum signal. It is a combination of a modified relative strength signal line which must be either below (the low) or above (the high) to trigger. As I am always in the market, I use it to reduce leverage, not go zero.
Backtests are pending, but visually it looks “right” to me, so I use it. Once I have completed the backtest, I will post the full results of the test here.
The payment is, critically, an explicit acknowledgement by you that you have read and understand the 3 points below.
I am not providing you with investment advice. Do your research and make your own investment decisions.I am not encouraging you to, nor asking you to trade.You will see at most two sentences that tell you how I am positioned, and/or maybe how I have traded.