Matt - couple newsletters ago you mentioned expecting a mean
reversion trade on spy might be showing up. can you explain what
was giving you that indication? Assume that was on long
side.
hello mitchell - if it was on the weekend that was regarding the
MES grail system mean reversion systems, of course that same trade
might also occur on SPY as well
yes was the Trend system was showing a trigger on Sunday night
when futures were strongly down, the signal went away after futures
popped back up. Since the market seems vulnerable here if it
were to see off we might see that system trigger or something else.
The mean reversion systems have shorts, but when prices are near
highs the vast majority of them would not be able to trigger.
Only a couple such as the Exhaustion Short (which is very
difficult to trigger and price has to be extremely overbought,
which it is not) and one of the Stochastic shorts - otherwise the
vast majority of shorts only occur when the market is and has been
in a downtrend, prices below the 200 MA etc, and clearly we are not
in those conditions - thus the mean reversion long systems are what
would be triggering most of the time when we are in long term
uptrends and above major moving averages
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Tradestation finally fixed that bad SPY data
Posted by matt on 3rd of Feb 2026 at 10:48 am
remember yesterday TS had a candlestick on SPY down to 62 LOL, which messed up those KISS systems, resolved today
Matt - couple newsletters ago
Posted by mitchell on 3rd of Feb 2026 at 12:29 pm
Matt - couple newsletters ago you mentioned expecting a mean reversion trade on spy might be showing up. can you explain what was giving you that indication? Assume that was on long side.
hello mitchell - if it
Posted by matt on 3rd of Feb 2026 at 12:35 pm
hello mitchell - if it was on the weekend that was regarding the MES grail system mean reversion systems, of course that same trade might also occur on SPY as well
yes was the Trend system was showing a trigger on Sunday night when futures were strongly down, the signal went away after futures popped back up. Since the market seems vulnerable here if it were to see off we might see that system trigger or something else.
The mean reversion systems have shorts, but when prices are near highs the vast majority of them would not be able to trigger. Only a couple such as the Exhaustion Short (which is very difficult to trigger and price has to be extremely overbought, which it is not) and one of the Stochastic shorts - otherwise the vast majority of shorts only occur when the market is and has been in a downtrend, prices below the 200 MA etc, and clearly we are not in those conditions - thus the mean reversion long systems are what would be triggering most of the time when we are in long term uptrends and above major moving averages