Trendfinder Trading Systems

There were several swing trades this month, and all but one had a profit. One intraday system had trades at the beginning of the month.

With the low volatility in the stock market this month, the intraday systems were primarily in hibernation mode. When volatility returns, these systems will wake up.

Trading activity continued to slow down. Every system except one that traded was profitable for the month.

It was a tough month for the Vol intraday systems, and a good month for every swing system that traded.

The day trading systems had a poor month due to choppy intraday action. The swing systems had some very large wins.

The Fed has been tapering their purchases of treasuries. If this continues then the market will likely continue to be vulnerable to volatile price action. However, if the stock market starts moving down, the Fed will likely start increasing their purchases again. With the multitude of market moving headlines every day, the market will probably continue to have volatility…unless traders and investors become numb to all this. In that case, the bull move and slow reduction in volatility will continue.

It was another very active month for these trading systems. As expected in this volatility, the day trading systems did well overall with Cheetah Vol being the real standout.

Well, that was a month for the history books! We saw enormous swings and unprecedented volatility. These trading systems weathered the storm pretty well. Every intraday system and every portfolio ended the month with a profit. The swing systems were pretty quiet and had mixed, but acceptable results.

Volatility has reduced some, which could bode well for these systems. Some struggled with stop losses getting hit because the intraday swings were so extreme. If intraday price movements continue being at least a little more palatable than they were mid-March, the stop losses will be less likely to be triggered during pullbacks/rallies. Of course there are no guarantees.

NOTE: SimpleSwing2 RTY is being retired. SimpleSwing2 YM will replace it in the Index Trader Portfolios going forward.

February is going to develop a reputation as a volatile month if it keeps this up. With the spread of the coronavirus COVID-19, fears exploded worldwide causing a spike up in volatility and a massive drop in stocks. For Trendfinder’s trading systems, it was a very active trading month (primarily the first and last weeks) with the day trading systems having a profit overall and the swing systems having a loss overall.

The Fed and Trump did their best to support the market. Even if the Fed reduces rates over the weekend, how would that reduce the effects of the coronavirus on the economy? I don’t think it would, but maybe it would impact sentiment enough to make a difference for stock prices. This is a very interesting market and I am watching everything closely to learn as much as I can.

Concerns about economic impacts of the coronavirus increased volatility at the end of the month. The daytrading systems took advantage of this volatility.

It was a relatively quiet stock market this month. There were a couple of intraday trades early in the month, and a handful of swing trades. The biggest winner was the Index Trader V portfolio.

The market appears to be shrugging off any impeachment or trade war concerns. However, this might be a mirage. The huge influx of money from the FOMC over the last several months during “not QE” may be the primary reason the stock market has been heading upward. This influx may end next month, and if does, we will find out what impact it truly has had.

It was a quiet month in the stock market and for these trading systems. This works well in combination with the being long equities. The stock market continued climbing to all time highs. When the market next declines, volatility will likely pick up, providing opportunity for these trading systems to profit.