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Hello and Welcome,
Welcome to the new Trizen Systems newsletter. This will be the new format for discussing our algorithmic trading systems and other information. Weekly updates will include Actual Profits/Losses, Commitment of Traders, Articles and Actual Trading screen shots. Pass this along to anyone that you feel would like to understand more about the financial markets, derivatives, and how to trade them successfully. Year to Date (YTD) Performance vs. the S&P 500:
Return on Initial Capital: +22.26% We are currently above the S&P index by 30.56% |
| Market Action
Weekly Profit (P/L): +$856 |  Another difficult week in the market. Our software systems required a hedge on until the Thursday of this week and thus the lower profit numbers in light of our "short" preference.
With a test and break below 1040, the new range will likely be between 1040 and 1000 with this shortened week putting on a small rally to test 1040.
Overall the government data this week was extremely poor to sustain any type of rally but with optimism about U.S. corporate earnings there may be a small rally this week. The software performed well; however, manual intervention reduced profits as we entered the weekend early.
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| Commitment of Traders
Bulls-n-Bears | | The COT, or Commitment of Traders, represents a government report that collects all the open positions for all traders in the futures market. It breaks it out into Hedgers, Professionals, and Small Traders. Hedgers maintain large portfolio positions and will hedge their positions using the S&P (so they can protect against falling markets). Professionals speculate and tend to be on the right side of the market opposite the hedgers. In most cases the Small trader (Green) is a contrarian indicator.
Analysis: The small (green) investor continues to take a beating, though the professionals (blue) have turned net long while the hedgers (red) continue to be short with more conviction. Look for short term rally this week.
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| Corporation Earnings & Consumers
Divergence |  Will corporate earnings bring out the bulls even though the consumer is entrenched? The divergence of corporate profits and consumer spending may show up in the next couple weeks and will likely leave many wondering if the economy is in fact wobbling on the brink of a double-dip (negative GDP growth). It is plainly obvious that the consumer is spending much less, just taking a stroll through any department store will leave you quite disappointed, but there are some bright spots. Most notably, many U.S. companies do large amounts of business outside of the U.S. and can offset U.S. economic conditions with foreign holdings and sales. Take GM for instance, while GM sputters in the United States, its foreign sales are doing quite well. Tech companies are also doing quite well in foreign markets, especially as these markets start becoming more in line with American spending habits (rising to middle class).
The headwinds to economic recovery are plenty but its the consumer that will have to lead us out of this pandemic. Unfortunately, until housing recovers (or is fixed) and jobs increase there will be less inclination for the U.S. to recover anytime soon. |
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Sincerely,
Edward Zaremba
Trizen Systems, Inc.
Commodity Trading Advisor
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| | BladeTrader Version 3.6 | | Version 3.6 and 3.3 have been released. We will have four accounts for each side and version and seperate percentages. |
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U.S. Government Required Disclaimer - Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN. |
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