AlgoTrendTraders Weekly Report - September 8, 2025
Disciplined, Rules-Based Trading
Thomas Meyer, Editor | September 8, 2025
Email: algotrendtraders@gmail.com | X: @AlgoTrendTrade1
IMPORTANT DISCLAIMER: The information published in this newsletter should not be used to make personal investment decisions. We do not know your personal financial situation. Investments should be made only after consulting with your professional investment advisor and only after reviewing the prospectuses or financial statements of the companies in which you're considering investing.
Executive Summary
Gold breaks to new all-time highs after completing narrow range consolidation. SPY and QQQ continue locking in profits as stops rise. All bullish trades remain profitable with increasing exit buffers.
Current Market Status
Active Trades & Exits
Key Developments
🚀 Gold Breakout: New all-time highs confirm end of narrow range consolidation from March-August. Expected Move back above 5% signals renewed momentum.
📈 Major Indices: Both SPY and QQQ sitting comfortably profitable. Stops continue gradual rise, locking in more gains from summer entries.
⚡ Volatility Watch: Gold's Expected Move expansion to 5.28% indicates increased opportunity and risk.
S&P 500 Sectors At-a-Glance
🟢 Bullish (7): Materials (XLB), Communications (XLC), Financials (XLF), Industrials (XLI), Technology (XLK), Utilities (XLU), Discretionary (XLY)
🟡 Neutral (4): Energy (XLE), Staples (XLP), Real Estate (XLRE), Healthcare (XLV)
🔴 Bearish (0): None
No changes from last week - broad market strength continues
Portfolio Services
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Here are the latest charts…
System Performance Through September 7, 2025
Why Trend-Following Works
The Problem with Buy-and-Hold: When you need your money (retirement, medical, education), a 30-50% loss at the wrong time can derail your plans forever.
The Solution: Disciplined exit strategies. Every trade has a predetermined stop-loss based on the security's normal volatility. Small losses, big wins.
Key Principles:
Follow trends until they break
Weekly closes eliminate daily noise
Risk management is more important than being right
Boring but historically effective
Trading Methodology
The Yellow Channel System:
Above yellow zone = 🟢 Bullish (go long)
In yellow zone = 🟡 Neutral (no trade)
Below yellow zone = 🔴 Bearish (go short)
Exit Strategy: Based on each security's 52-week volatility ("Expected Move"). Stops move up with profitable trades but never down.
Best Entry: When new signals trigger. Late entries carry higher risk - consider smaller position sizes.
Remember: Always have your exit strategy prepared before entering any trade.