Portfolio Boss

What Code-13874A is saying about the market

Corona Del Mar, CA


Howdy Friend,


Code-13874A saw a big change this Friday. That's the code the CFTC gives to the E-mini S&P 500 Commitment of Traders. It was the first time we got a glimpse into the affects of September futures expiration.

There was some net selling from wrong-way traders, but not enough to be more than background noise (see the red line on the chart below).


The S&P 500 remains on a "buy" signal.

Now let's take a look at the equal weight S&P 500. This index is a symbol of diversity. And we all know diversity is strength.

Bears will notice how the all-important 155 support level was breached.


Prices remain in the bearish channel that developed in August. Therefore I'm predicting with my superior line drawing skills a 50-year bear market. In case you're been vaccine damaged, I'm just f-ing with you.


The chart above is from a random number generator. The majority of technical analysis is complete bullshit. It's subjective and useless. I showed a buddy this chart, and he told me that clearly there's signal within the random number generator. I assured him that he is quite wrong and so are the millions of folks who play connect the dots and scribble all over charts. I reminded him that three of us spent 18 months and hundreds of thousands of dollars using a supercomputer network only to discover pattern recognition does not work.


That doesn't mean price charts are random. Indeed, you can take a 1-week moving average on a computer, and build yourself a pretty decent mean reversion strategy. Now, while I was joking around earlier, diversity really is a strength when it comes to trading.


The work my team and I did on combining strategies together with machine learning clearly shows this. By the way, get ready for something so over the top from us that it will be hard to believe. After six long years, we're coming after the largest trading system platforms.


Time to leapfrog the competition.


Too be continued...

Trade smart,

Dan "Prince of Proof" Murphy


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