Rally 1st Day

Green light is a long way away!

Small cap reference system at a critical juncture: And the market and itself rallied just at the right time. But the rally so far was lackluster, and we still have a lower low.

So far, the market needs to prove itself and for that I want to see a higher high within the above system.

Also, the reference system does not outperform the SP500 so far, therefore I can see absolutely no reason to increase risk and to go all in here.

Same with the above system book. It’s my best small cap system book and it behaves pretty much the same way: we have a lower low and no higher high. Until that happens, I keep my foot on the break!

Have a look above the short systems, they printed a higher low so far, so the trend for shorting high beta is still up (though I would not start to short at these levels, we need a monster pain trade here until everybody thinks shorts are not working again, for this we need at least a 10-15% rally in high beta trash).

For you that follow the Nasdaq100 Long Short System. Nothing spectacular since we started to show it:

Here the back test results of the Nasdaq100 System, including OOS.

As always this is not investment advice!