Traders' A.I.

Model Biases/Outlook:

Due to the fact that the index has been flirting with the highly critical technical support level of the 200-DMA currently around 2767 over the last few trading sessions, our models are currently in an indeterminate state and would make further directional bias determination based on a decisive market action around this level. 

Considering the ongoing earnings season, this clarity is likely to develop in the markets within these couple of weeks, only after which can there be a directional bias embraced by our medium-term models. 

Our aggressive intraday models would continue to indicate key trading levels on a day-to-day basis in the sections below.      

A Brief Trace Back of The Current Bias/Outlook

Thursday, 09/27, our models had negated the previously adopted bullish bias and signaled a neutral bias between 2933 and 2887, which was later updated to 2920 and 2880. 

On a break below 2880 on 10/10/18, our models executed the pre-published trading plan to book 142 points in profit on a short position! Our models have since adopted a “cautiously bearish” bias. This caution is in view of potential spikes up in a whipsaw mode.

With the sharp whipsaw moves in both directions with no real movement since Friday 10/12, our models are currently sporting an “indeterminate” bias. Yesterday’s close below the 2767 level needs to be confirmed with today’s close for our models to turn bearish.  

Trading Plans for TUE, 10/23:

Medium-term/long-term Investors

Following big wins during the volatile deep moves this month, the medium-term models are currently flat and sporting an indeterminate bias. 

Yesterday’s trading plan stated: “For today, Monday 10/22, the medium-term models indicate going long on a break above 2818 with a 8-point trailing stop and going short on a break below 2758 with an 8-point trailing stop” (click here to read the full report and/or to verify this claim). 

The index broke below this level with the daily close at 2755.88, triggering a short position after markets at the 2755.50 level on the index, with the trailing stop initially anchored at 2767.50. 

For today, Tuesday 10/23, models indicate carrying this short position with a widened 12-point trailing stop. If the stop is hit and the position is closed, then the models would stay flat for the rest of the session.    

Aggressive, Short-term, Intraday, or Professional Traders

Our aggressive intraday models closed a short position with a whopping 142+ points profit during the sharp drop in the markets the week ending 10/13/18! This was followed by a couple more big wins, despite the market not really moving much farther from the close of last Friday, 10/12!

For the last trading session, the models bagged yet another winning trade, where the forecast published before the markets opened Monday stated: “For today, Monday 10/22, the aggressive intraday models indicate going long above 2791 with a 7-point trailing stop, and goinng short below 2764 with a 6-point trailing stop” (click here to read the full report and/or to verify this claim).  

The index crossed the 2764 level in the first ten minutes, triggering a short position with the 6-point trailing stop. The session low was registered at 2749.22 within the next fifteen minutes, anchoring the trailing stop at 2755.22, which wa hit later in the session, closing the short position for a profit of 8.78 points on the index! The models then stayed flat for the rest of the session. 

For today, Tuesday 10/23, our aggressive intraday models indicate potential testing of the 2710 level by the index, which could be followed by a swift spike up or a deep break down. Hence, our models indicate trading off of the 2710 level as the pivot point during the regular session: go long on a break above 2710 and go short on a break below 2710 during the regular session – both with an 8-point trailing stop. If the regular session does not test the 2710 level, then the models would stay out of the market for the day. 

Remember that a “trailing stop” works differently from the traditional stop-loss order. Please bear in mind that the trailing stop’s trigger level would keep changing throughout the session (click here to read on the conceptual workings of a trailing-stop). 

IMPORTANT RISK DISCLOSURES AND NOTICES – READ CAREFULLY: