Breaking Up is Hard to Do

Breaking Up is Hard to Do

Good Morning:

  • Until otherwise resolved, the stock market (as measured by the S&P 500 Index) is in a trading range bounded to the north by 4135 and 4065. Balance Rules apply.
  • Fed Governor Brainerd (now leaving to be President Orwell’s economic adviser) triggered yesterday’s late-day sell-off. 
  • Inflation and Fed policy still rule the day.
  • The Fed does not seem to favor higher stock prices, so they are talking the market down.
  • Anyway, the 20-week cycle trough is due and may be underway.
  • The bears are looking for a crash, and they have their arguments.
  • The bulls are looking for a muted 20-week cycle correction due to the market’s strength from the October 2022 low.
  • And though the landscape is a bit distorted due to monthly options expiration today, the market has moved sideways because neither the bulls nor the bears have prevailed with their narratives.
  • Our Zeus Algorithm (formerly the Navigator II) has been in a sell signal since 2/3, followed by our Zeus Algorithm (formerly the Navigator) on 2/8. Our Janus Algorithm issued a final sell signal on 2/13
  • The next Zeus turn date is on 2/23.

Have a great weekend!

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.

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