MrTopStep Update; Piling Back Into Tech, ES Up 1% , Nasdaq up 1.75%

There used to be a three day settlement for stocks called T+3 but the SEC changed the rules but there is a T+1, that is what the PitBull was talking about when he mentions some end of the month rebalancing. I think we are going to new highs #5700 by tomorrow.

There are a couple of trading rules I want to point out : 

1) Don’t go short the ES on a weak close when it is at a big discount to the S&P cash.

2) If you are surprised by the rally the ES opened well above the 50% retracements.

3) It takes days and weeks to knock the S&P down and only one to bring it back.

4) Friday, the last day of July and the last trading day of the month with possible re-balancing and an options expiration. 

It’s all weather in the bath tub…