Following the Path of Least Resistance...Higher

Follow @MrTopStep on Twitter and please share if you find our work valuable!

Every week, MrTopStep invites traders to an “Own the Close” contest where the closest guesstimate where the SPX will settle on Friday’s 4:00 cash close.

The winners get a free week's access to the MrTopStep Chat and trading tools. Enter your guess now!

Our View

I totally underestimated the Fed Minutes that showed concerns over inflation and cast doubt over further rate cuts and I paid the price. 

As soon as the Fed headlines hit the tape, the headline algos took over. I got beat up trying to be long a few times, but the ES kept falling. Eventually though, I got out and got long off the lows and ended up on the day. 

Early on I said in the MTS chat that the early quick drops were not a good sign, but I had no idea we would see such a big drop. I did mention the VIX yesterday, which settled at 11.86 on Tuesday, and while it did trade up to the 12.80 level it ended up settling at 12.29. 

In other words? There’s still no fear.