AlgoTrendTraders Weekly Report
Thomas Meyer, Editor | September 22, 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
New all-time highs continue across major indices and gold despite September's historically challenging reputation. Bitcoin holds recent bullish signal while crude oil maintains bearish stance. Market breadth shows some sector rotation with Materials moving neutral and Staples turning bearish.
Current Market Status
Active Trades & Exits
Key Developments
📈 Continued All-Time Highs: SPY and QQQ extend their remarkable runs with fresh records, building larger profit cushions as stops move higher.
🥇 Gold's Stellar Performance: Another new all-time high pushes current profit to over 40% since January entry. Distance from stop widens to 1.9 Expected Moves.
₿ Bitcoin Holding Pattern: Recent bullish signal remains intact with minimal profit so far. Volatility remains elevated at 10.37% Expected Move.
🛢️ Crude Oil Weakness: Bearish position showing small gain as price remains below transition zone.
📊 Sector Rotation: Two notable changes this week - XLB (Materials) drops to neutral, XLP (Staples) turns bearish.
S&P 500 Sectors At-a-Glance
🟢 Bullish (6): Communications (XLC), Financials (XLF), Industrials (XLI), Technology (XLK), Utilities (XLU), Discretionary (XLY)
🟡 Neutral (4): Materials (XLB), Energy (XLE), Real Estate (XLRE), Healthcare (XLV)
🔴 Bearish (1): Staples (XLP)
Two condition changes this week as market leadership continues to evolve
Portfolio Services
DeepStreet.io Update
Important Notice: DeepStreet will be closing at the end of this month. No new trades will be posted there. I'll update exit strategies for current open trades later this week.
Thomas Meyer Investment Management
Not comfortable managing trades yourself? I can handle it for you. Funds stay in your name at Charles Schwab institutional.
Learn more: tminvestmentmanagement.com
Here are the latest charts…
System Performance Through September 21, 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.
This is not a "get-rich-quick" scheme. Trend-trading requires discipline, patience, and proper risk management. Past performance does not guarantee future results.