The Equinox Arrives? What Does it Mean?

The Equinox Arrives? What Does it Mean?

Good Morning:

 -♂- Since our last correspondence, the Founder’s Group has enjoyed several profitable round trips on the Archimedes Hourly Strategy. The Algo remains in an Archimedes Daily Strategy buy signal at 3895.25 triggered on March 15th, slightly before 1 pm EST.

 -♂- As usual, we are looking to the 5-day line currently at 3981.75 to potentially add to positions if the Archimedes Algorithm continues to point north. While somewhat paradoxical, a material and sustained violation of the same level triggers an exit of our entire position from the market. In a sense, that is why we call it a low-risk entry or inflection point.

 -♂- Not much is at risk when we buy under the 5-day line as the first stops are triggered. We don’t place formal stops on existing positions right there anyway, as we have a proprietary way of handling our positions. As mentioned, stops are a last resort or fail-safe measure for us. We prefer to exit profitably on waning strength. 

 -♂- Today, we plan to sell our entire position into the NYSE Open so we are in cash for tomorrow’s Fed announcement. Our systems are not telling us to do so, it is a call that emphasizes our first principle of capital preservation. We don’t mind returning to the market at higher prices. We already have triple-digit returns from January 1st.

 -♂- It seems unwise to risk navigating the volatility that is sure to follow the most important Fed interest rate announcement in recent times. The Fed’s Hobson’s choice may further incite inflation in favor of saving the banking / economic system. On the other hand, the Fed risks its credibility by not continuing the course of higher interests rates for longer to fight inflation. And let’s face it, an economic calamity is what the Ruling Cabal wants to reset everything to global communism anyway.

 -♂- What a cluster&*^% all of this is. The Fed, Treasury, Congress, and the Defense/Intelligence apparatchiks have created a nightmare both through incompetence and perhaps by design. We are committing economic suicide as competitor countries (e.g. China) are poised to clean up due to our egregious errors.

 -♂- And then President Trump is slated to be arrested today. If so, we join the ranks of Banana Republics everywhere. Perhaps Argentina is a good model as to where we are headed. Their inflation has been 100% over the past year.

 -♂- So there must be a diversion – a major distraction! The Ukraine War is failing. Banks are collapsing. Don’t be fooled. Keep your eyes on the economic ball and the War Mongers.

 -♂- Ukraine, China, Russia, World War III, inflation, collapsing banks, and the economy – these things matter when the Cabal tries to suck the air out of the room by arresting President Trump or through any other distraction.

 -♂- Today is the Spring Equinox and New Moon for the new Lunar Year. Happy New Year! If the market is rising into this special date, it can reverse. No guarantee – Spring is normally a time for optimism, and the market typically turns higher here. 

 -♂- Notably, our market proxy, the S&P 500 Index, has turned higher almost to the hour of the 60-Year Master Cycle turn on March 13th. But what is “normal” these days? Carry the possibility of a reversal south in your narrative, but realize that it would be the exception to the usual rule.

A.F. Thornton

AF Thornton


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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