The last 7 trading days I got the impression that “R Option” was trading as a counter-cyclical vs a market timer model. As you know, “R Option” is my best companion when navigating the markets. Its assistance is so critical what that with the help of investors we created a hedge fund.
Today was not different, I was adding risk last week when the markets were not that strong and today with the markets above 2% on the day: the system starts to lower the risk. I am a firm believer that nobody can predict future price with certainty and that market opinions are just to be tested with an outstanding risk management and position size analysis.
To summarize, I most likely will close some trades and lower exposure to the SPX and NDX too early and I am happy and calm.
Note this Twitter post for a simple note on market structure
You can find a chart update in this post each day after the close.