Interim Update – 9/21/2022

Updating our short trade from earlier today, we shorted the Fed Announcement at 3902.50 and set our stop shortly after that to 3895 as the price immediately fell. We moved our stop down to 3862.25 as the price continued to decline.

We tried to keep the stop wide enough to accommodate the volatility but still stopped out at 3862.25 for a profit as the market pivoted north. As pointed out this morning, the algorithms were still in a sell signal, so we did not take a long (reversal) position on the buy stop and waited to see what the market wanted to do.

Once Fed Chairman Powell’s press conference was underway, the market recovered all it had lost and temporarily rose above our triggers (the five-day line and algo trigger). But it was clear at the granular level that this was nothing more than a stop run (see chart above), and we took another short position at 3893.25, which we will maintain for now.

The day was intense. Still, Navigator Swing Strategy Subscribers had another fabulous day – even though they felt like day traders. But then there is always tomorrow…

A.F. Thornton