S&P 500 INDEX MODEL TRADING PLANS for FRI. 08/04
As we published in our earlier trading plans: “The question on everybody’s mind – whether they are a bull or a bear or a bystander – is: “How long can this rally continue?”. And, nobody knows – or, can know – the answer, of course. But, as long as there are doubters, the rally will still have some steam left in it – mostly feeding on short squeezes”.
As we published in the wake of the US debt downgrade: “There is a potential for sudden spikes up to squeeze the shorts in the near term. Might be risky to stay short while the index is above 4500”, the 4500 support level has held and the index survived any potential downfall from the US debt downgrade. At least, for now.
The level of 4545-4550 is now the main resistance level, with 4500 the immediate support.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 4550, 4532, 4520, 4506, or 4491 with a 9-point trailing stop, and going short on a break below 4545, 4528, 4516, 4502, or 4487 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 4537, and explicit short exits on a break above 4537 (same level). Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 01:01pm EST or later.
By definition the intraday models do not hold any positions overnight – the models exit any open position at the close of the last bar (3:59pm bar or 4:00pm bar, depending on your platform’s bar timing convention).
To avoid getting whipsawed, use at least a 5-minute closing or a higher time frame (a 1-minute if you know what you are doing) – depending on your risk tolerance and trading style – to determine the signals.
Positional Trading Plans:
Our positional models carried a short overnight, with an entry of 4509.90 and a short exit at 4516 (or, the equivalent in ES futures after hours). The short exit level was hit overnight closing the short at a deemed level of 4516 for a loss of 6.10 index points.
For today, positional models indicate staying flat.
By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an index-tracking instrument that trades beyond the regular session, with the trailing stops – if any – being active in the overnight session.
NOTES – HOW TO INTERPRET/USE THESE TRADING PLANS:
(i) The trading levels identified are derived from our A.I. Powered Quant Models. Depending on the market conditions, these may or may not correspond to any specific indicator(s).
(ii) These trading plans may be used to trade in any instrument that tracks the S&P 500 Index (e.g., ETFs such as SPY, derivatives such as futures and options on futures, and SPX options), triggered by the price levels in the Index. The results of these indicated trades would vary widely depending on the timeframe you use (tick chart, 1 minute, or 5 minute, or 15 minute or 60 minute etc.), the quality of your broker’s execution, any slippages, your trading commissions and many other factors.
(iii) These are NOT trading recommendations for any individual(s) and may or may not be suitable to your own financial objectives and risk tolerance – USE these ONLY as educational tools to inform and educate your own trading decisions, at your own risk.
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