Newsletter - February 2022
System of the Month:
Forest Mini S&P Kennedy C5 Stop-TProfit Intra
Many traders choose to diversify their portfolios with algorithmic trading systems. The following system has been selected as the broker's choice for this month.
REQUIRED CAPITAL: $2,900*
PRODUCT: E-Mini S&P future
SYSTEM TYPE: Intraday
COST: $55 / month
COMMISSION: $7.50 per side 
The performance shown above is hypothetical in that the chart represents returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on backadjusted data.   
The Global Update Blog
Setups for Frequent Day Trading Patterns
For day traders and scalpers, volatile micro movements signal opportunities for potential profit as well as the risk of loss. Let's take a look at four frequently occurring patterns that you might see.
 
Upcoming Government Reports & Holidays
Feb 01
Feb 03
Feb 04
Feb 08
Feb 09
Feb 10
Feb 14
Feb 15
Feb 16
Feb 16
Feb 17
Feb 18
Feb 24
Feb 24
Feb 25
Feb 28
CONSTRUCTION SPENDING REPORT
MANUFACTURERS' SHIPMENTS, INVENTORIES & ORDERS - FULL REPORT
EMPLOYMENT SITUATION REPORT
US INTERNATIONAL TRADE IN GOODS & SERVICES REPORT
MONTHLY WHOLESALE TRADE: SALES & INVENTORIES
CONSUMER PRICE INDEX REPORT
BUSINESS FORMATION STATISTICS
PRODUCER PRICE INDEX REPORT
ADVANCE MONTHLY SALES FOR RETAIL & FOOD SERVICES REPORT
MANUFACTURING AND TRADE: INVENTORIES & SALES REPORT
NEW RESIDENTIAL CONSTRUCTION REPORT
ADVANCE SERVICES REPORT
NEW RESIDENTIAL SALES REPORT
PRELIMINARY US IMPORTS FOR CONSUMPTION OF STEEL PRODUCTS
ADVANCE REPORT ON DURABLE GOODS - MANUFACTURERS' SHIPMENTS...
ADVANCE ECONOMIC INDICATORS REPORT
Key Events That Moved the Market in Jan. 2022
The following is a review of US and world events from the last month. Please be advised that this content is based upon the opinions and research of GFF Brokers and its staff and should not be treated as trade recommendations.

S&P 500 Index (SPX) - Daily Chart - Jan 3 - 31, 2022 (Source: Tradingview)

January 3
  • The broader market held steady near record highs as the Dow gained 246.76 points, up 0.68%, the Nasdaq shot up 1,11%, and the S&P inched up just a little more than two thirds of a percent.
  • Apple crossed above the 3 trillion market cap threshold during the day for the first time ever. Note that this took place as investors are questioning whether the market is becoming too dominated by a handful of Tech giants.

January 4
  • The Dow closed at all-time high territory, advancing over 214 points while the S&P touched a new record though closed below it, while the tech-heavy Nasdaq saw a heavy downward rejection from the top, falling 1.35%.
  • Data on manufacturing activity and labor conditions support the idea that the economy is spring-loaded to re-accelerate soon.

January 5
  • If the last month saw a robust Santa Claus rally, then today just marked its end.
  • The Dow fell 392 points, down 1.07%; the S&P fell moderately lower almost two percent, while the Nasdaq plunged a painful 3.12%.
  • The Federal Reserve sent shockwaves through the market with its latest minutes, namely the comments some members made that the central bank may need to find a faster path to raising rates. That, as you can guess, was a problem for Wall Street.

January 6
  • Taking a breather from yesterday’s elevator ride down, the Dow and the Nasdaq fell around 0.4%, while the S&P declined by a mere 0.10%.
  • It appears that investors are rotating out of Tech and into Finance, Industrial, and Energy sectors.
  • There’s a growing sense that omicron may slow the economic recovery but NOT derail it; hence the turn toward economically-sensitive sectors and industries.

January 7
  • Wall Street continues its rout, but not by too much.
  • The Dow ended the day slightly unchanged, down a mere 0.01% while the S&P (down 0.40%) and the Nasdaq (down 1%) did a bit worse.
  • There was a lot of confusion about the December jobs report: the US added 199,000 jobs well below economist expectations of 422,000. BUT the unemployment rate fell to a better-than-expected 3.9%. Well, chew on that. 

January 10
  • It was a mixed day on Wall Street as investors show some resilience in BTFD (aka Buy the F*#!ing Dip) territory; or at least, it seems that way.
  • The S&P closed -0.14% with a strong show of technical support while the Nasdaq ended UP 0.14% showing the same “bottoming” pattern. The Dow was the weakest performer, falling 162 points, or -0.45%.
  • Goldman Sachs upped their rate predictions to 4 hikes this year, sending shivers down Wall Street’s spine; JP Morgan’s Jamie Dimon, on the other hand, said there’s nothing to worry about, as the underlying economy is in good shape and he’d be surprised if the Fed only raised 4 times.

January 11
  • Optimism appears to be building up as all three indexes advance from yesterday’s lows.
  • The question is, are we about to see a resumption of the bull trend or is this a so-called “bear market rally”?
  • The tech-heavy Nasdaq was the top performer, rising 1.47; the S&P came in second, rising by almost a percent; the Dow was down over 300 points but ended the day up 183 , or half a percent by today’s close.
  • Jerome Powell was reconfirmed today as Fed Chair where he reaffirmed the need to reign in the central bank’s balance sheet. But he also eased investors’ fears by promising a highly visible path toward tapering and rate hikes.

January 12
  • Another mixed and seemingly undecided day on Wall Street as bullish conviction began to show signs of weariness and doubt. 
  • The Dow and S&P were today’s gainers, but both well below a third percent; the Nasdaq lost nearly 0.40% for this underwhelming session.
  • A red hot inflation report came in as it matched analyst expectations of a 7% increase in consumer prices year over year. 7%...ouch, that’s the biggest rise we’ve seen since 1982.

January 13
  • If you guessed that the last two sessions comprised a bear rally set up, today might have confirmed it.
  • The Dow fell 176 points, the S&P lost 1.42%, and the Nasdaq took the brunt of the blow, down 2.57%.
  • Tech drove the markets downward (a rotation?) while airlines surprisingly did well; a sign that investors expect omicron’s impact to ease amid a strong economic recovery.
  • Although omicron may “slow” but not “derails” the economy, the wild card remains inflation along with the Fed’s response.

January 14
  • A mixed day on Wall Street as investors try to drive forward the market’s upward momentum (or at least stall its fall) to end the week.
  • The Dow was the only loser, giving up ground by 201 points; the S&P and Nasdaq gained, 0.08% and 0.75% respectively.
  • Wage growth has become a hot and somewhat controversial topic as some analysts are beginning to warn of a potential wage inflation “spiral,” where companies have to raise prices to keep up with wage increases, further increasing the cost of living which is eventually met by…(drum roll) demand for another round of wage hikes.

January 18
  • Remember the “buy the dip” territory we saw on January 10? Well, the markets plunged past the buy point, taking out critical support today.
  • The Dow took the least punishment today but still saw a nerve racking plunge of 543 points. The S&P declined 1.84% (a 10% decline from its record high); the Nasdaq took a -2.57% hit.
  • Despite the Tech carnage, the broader market “overall” is only 5% from its peak; but will that be enough to resume the uptrend? That’s what investors are likely thinking.

January 19
  • And the doom and gloom continues with all three indexes giving back a percent, give or take.
  • Unnerving bond yield action likely played a role in today’s selloff as the 10-year just barely touched 1.9% (a two-year high).

January 20
  • The opening weeks of 2022 may be one of the worst market performances in recent history as all three indexes slide by another percent, more or less.
  • There was plenty of “green” on the screen but traders eventually decided it lacked conviction, as the recent price bump might have been nothing more than a snapback from oversold conditions.

January 21
  • It’s a third day of declines straight across the board as Wall Street begins to wonder where the market bottom might be.  
  • Investors seem fixated on trying to figure out how many rate hikes the Fed may make to rein-in inflation. 
  • Overall, it’s a deflating end to a seemingly damaging week in the markets.

January 24
  • The volatility today was historic with the Dow plunging more than 1,000 points before ending the day up 99 points; the S&P bounced back 0.28%; and the Nasdaq gained the most by a modest half percent.
  • This marks the worst session in the stock market since the Covid Crash of March 2020.
  • No doubt that the uncertainty surrounding the Fed heading into its two-day meeting is what caused today’s market action.
  • Wall Street isn’t expecting any rate hikes until March, but still…the uncertainty and its effect on the markets is, apparently, unnerving.

January 25
  • Another topsy turvy consolidation day as investors try to gauge the landscape of coming Fed rate hikes, rising inflation, and omicron uncertainties.
  • The Dow stayed somewhat silent, down only 66 points; the S&P lost 1.22%; the Nasdaq fell 2.48%.
  • Investors are looking at technicals, hoping that the markets won’t break below yesterday’s lows. While the markets didn’t do that today, investors will be focusing on the market action from here on, as that critical support level will determine market sentiment in the days to come.

January 26
  • No rest for the weary as the wild week rolls on.
  • The Dow rose as much as 500 points, then dropped as low as 400 points and ended the day down 129. Meanwhile the S&P shed 0.15%, while the Nasdaq, today’s outperformer, gained 0.17%.
  • The Fed ended its meeting with Jerome Powell signaling the central bank’s priority on putting a lid on inflation.The big headline was when he said there’s plenty of room to raise rates without dampening employment.

January 27
  • It was another wild day on Wall Street with the Dow swinging 700 points only to close down 7. The S&P lost half a percent, while the Nasdaq fell over a percent. 
  • Fourth quarter GDP gave us a blowout beat, lifting stocks, but then the markets went south when investors digested a disheartening inflation indicator coupled with earnings concerns, where shortages and higher input costs are making it difficult for companies to meet demand or to keep a lid on prices.

January 28
  • A dizzying week finally comes to a close as Friday ends in the green.
  • The S&P, up 2.44%, is having its worst January since 2009; the Nasdaq, up 3.22% today, is having its worst January on record; and the Dow, after dropping over 300 points, closed on session highs, up 564 points.
  •  There’s one more trading day to close the month of January, and market action informs us that investors may be betting on the recovery despite omicron fears, as travel, online shopping, and big energy names jump.

January 31
  • Stocks are bouncing back for a second day as Wall Street wraps up a rough month.
  • Still, January is on pace to become the worst month since March 2020.
  • The Fed indicated last week that it will be raising rates to combat inflation.
  • It appears as if Wall Street has priced in at least five quarter-percentage-point rate hikes for the year. Let’s see if investors are correct in their estimate.
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*Details regarding Forest Mini S&P Kennedy C5 Stop-TProfit Intra: Please be aware that the suggested capital to trade this system is $20,000. Please speak to your broker for more information about this trading system. The returns for the systems listed are hypothetical in that they represent returns in a model account. The model account rises or falls by the average single contract profit and loss achieved by clients trading actual money pursuant to the listed system’s trading signals on the appropriate dates (client fills), or if no actual client profit or loss available – by the hypothetical single contract profit and loss of trades generated by the system’s trading signals on that day in real time (real‐time) less slippage, or if no real time profit or loss available – by the hypothetical single contract profit and loss of trades generated by running the system logic backwards on backadjusted data.
 
HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM.
 
ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR TO ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS.

There is a substantial risk of loss in trading futures, options and forex. Past performance is not necessarily indicative of future results. Margins are subject to change at anytime without notice. All material herein was compiled from sources considered reliable. However, there is no expressed or implied warranty as to the accuracy or completeness of this material.