All According to Script – Interim Update

All According to Script – Interim Update

As expected, the market (as measured by the S&P 500 March Futures Contract) found its footing just below the 4520 support I had identified pre-market, bottoming at 4516. Then, as expected, it rallied right up to the Weekly Expected Move high at 4570. It has been a game of ping pong from there.

In fact, the market looked good until Fed Governor Bullard came out with his view that the Fed board should aggressively raise rates 1% by July and then start reducing its balance sheet in the second quarter. Any such move would be significantly more aggressive than what the Fed has already announced.

Needless to say, the market puked on the news, perhaps as intended. One might expect that the Fed is looking for a declining stock market to help tamp inflation down, and the market’s turnaround north is not all too pleasing to them.

Depending on how the day goes, we may need to reassess our strategy. We redeployed cash only a few points off the morning low, so we are well-positioned to raise more cash if necessary, though I don’t want to give back our morning gains.

Leveraged accounts already took their profits when the SPY was at 457.50 and have returned to cash.

This is a day to stay attentive.

A.F. Thornton

AF Thornton

Website: https://tradingarchimedes.com

A.F. "Arthur" Thornton is an expert in logic, risk/reward quantification, market fractals, pattern recognition and asset class behavioral analysis with 34 years devoted to developing algorithmic and quantitative trading systems. In addition to trading his own capital, Mr. Thornton designs custom algorithmic and quantitative trading systems for a small and exclusive group of exceptionally qualified traders.

Subscribe!

Free Blog content and videos delivered to your email.

Health and Wealth Podcast Coming Soon!

We value your privacy, never sell your information, and detest spam!