Welcome to our market update… there are some interesting shifts going on in the market right now!

In the table below you will see that the major US indices have been struggling to keep their head above water, but it is nice to see the Russell 2000 Equal Weight index leading the market rather than big tech for a change. In fact, the technology sector was down 1.5% for the week, while many other sectors were strong. This is a nice (gentle) reminder to not get myopic and just focus on one sector of the market, like tech, because they won’t always lead. Bubbles burst, it is just a matter of time… so stay diversified and make sure you have a portfolio of good systems in place.

Check out XLQ here and get a $50 discount.

Looking at the global markets, last week was actually quite weak (I was resisting writing it was a “weak week” because that sounds funny, but I gave into my temptation) 😆

After a huge runup from a low of 14794 in January, the Hong Kong market (Hang Seng index) hit a high of 19706 on 20 May (up 33% from the low) and has not surprisingly had a decent pullback of 8%.  Judging by today’s movements in my trading accounts, it looks like this pullback is over, as most of my HK long positions are up substantially today (Monday 3 June). If that is the case, I am certainly looking forward to the next leg up in that market!

Crypto markets (not shown) were flat for the week and my accounts in this space have been bouncing around sideways for a few days. There is nothing exciting to report there… except, of course, that the low from early May is still holding, and it continues to look like we will get a continuation of the up trend.

I have mentioned Taiwan stocks a few times recently in various communications… I thought I would share here that I have been demonstrating live how to adapt a system to a different market during my System Builder’s Club sessions with my Trader Success System members over the last few weeks. For a first go in a new market, we got some pretty good results that I am reasonably happy with:

There is a nice stable edge and the results are good enough to consider including in a portfolio IF it provides some level of diversification benefits.

• CAR 18.5%
• MDD 26.3%
• CAR/MDD 0.70

Trading Tip: The Power of Automation

Embracing automation in trading can significantly enhance our efficiency, accuracy, and consistency. Automation allows traders to implement portfolios of strategies that would be nearly impossible (or at least undesirable) to manage manually while also ensuring consistency and adherence to predefined trading rules. This consistency is crucial for realizing a strategy’s edge over time.

Automation also minimizes emotional trading decisions, which can be a common pitfall for many traders. By setting up automated systems, we can stick to our strategies without the interference of fear or greed, leading to more disciplined and rational decision-making. This is particularly beneficial during volatile market conditions where emotional responses can cloud judgment and lead to costly mistakes.

Above all, automation saves time by reducing trading to a monitoring exercise and allows a greater degree of diversification—both extremely desirable outcomes for most of us.

Implementing automation does require careful setup and ongoing monitoring to ensure systems are performing as expected. However, the upfront investment in time and resources can pay dividends by freeing up traders to focus on strategy development and market analysis rather than getting bogged down in the mechanics of order execution.

Have you considered automating your stock trading portfolio?

Member Wins

Our EST Member of the Week is Jennifer E (again… she is a bit of a super star) 🤩

Jennifer has been really putting in the work, being active on the forum, completing coursework and tasks, asking questions, attending sessions, and even supporting the EST Community by attending our Market Mastery Bootcamp on the weekend!

We love your commitment and enthusiasm, Jennifer. Thanks for being such an amazing Member, and keep up the great work!

News from EST

• Over the weekend, we had Market Mastery Bootcamp, which went very well, judging by the feedback we have received. If you are relatively new to systematic trading and you missed it, you can watch Day 1 on YouTube here.
• On June 18th, I will again present for Interactive Brokers on “The Power of Backtesting: From Theory to Practice (How to Validate You Actually Have an Edge).“ You can register for this free training here.
• We have opened The Trader Success System for a limited time to the public. If you are ready to unlock your trading potential, join now before enrolment closes on June 5 and transform your trading journey with proven systems and expert guidance.
• Last week I launched a brand new offer: The Ultimate Trader Success Bundle. It is a 6-month program that guarantees to get you up and running with your first system in 6 weeks and then fully automated with 3+ systems within 6 months, or we will work with you for another 6 months FREE to make it happen. Comment below with the words “Automate Me” if you are an analytical professional with $50K or more trading capital, and this is an outcome you want and I will get you all the details.

On the Home Front

There was not a lot of excitement on the weekend at our house as we were tied up with Market Mastery Bootcamp… but here is a photo of our ridiculously fluffy dog, Gizmo, who just got back from the groomers. He ran into the house smiling at me when he got home from the groomer very pleased with his new look! Dogs are people too apparently 😂🤣😂🤣😂🤣🐕

Enjoy the markets this week. Remember, if you are nervous about your portfolio, then you don’t have the right mix of systems or you are trading too aggressively. Have a great week 😊

Remember – You’re only one trading system away! 📈

Your Trading Coach,

Adrian

Founder, Enlightened Stock Trading