When our SwingHunter algorithm can't find attractive entries, it's telling us...
When our SwingHunter algorithm can't find attractive entries, it's telling us something important about this market. 🧵
SYSTEM STATUS
THE EDGE
Trendlock is locked into TRENDING mode with SPY cleanly above $690. Crisis Hunter dormant at VIX 15.4. But SwingHunter on STANDBY tells the real story. No juicy oversold bounces = steady grinding higher action. This is where trend-following thrives and mean-reversion struggles. Our system constellation confirms it. Bottom line: Healthy bull market momentum without mania. The path of least resistance remains higher, and our algorithms are positioned accordingly.
Here's what caught my attention today: our SwingHunter algorithm is sitting on the sidelines.
While SPY holds cleanly above $690 and our Trendlock system stays locked in TRENDING mode, SwingHunter can't find those attractive oversold entries in leveraged ETFs. This isn't a bug - it's a feature.
When mean-reversion opportunities dry up, it typically signals steady, grinding higher action rather than volatile swings. The VIX at 15.4 confirms this low-volatility environment that trend-following systems love.
Our systematic constellation is showing momentum without mania - exactly the kind of healthy bull market environment where algorithms can follow the path of least resistance higher.
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