Model Positions Based on The Forecast/Trading Plan Published Before the Market Open – TUE 08/14:


Medium-term/long-term Investors

Forecast/Trading Plan: (click here to read the full report/trading plan)

The trading plan published this morning stated: “For today’s regular session, the medium term models indicate going long on a break above the index level of 2860, with a 10-point trailing stop. No bearish bias until all the way below 2820″.


Market Action and the Outcome:

The S&P 500 Index has opened the regular session at 2827.88 and registered session high at 2843.00 and session low at 2826.58 (as of 1:30pm EDT) – well within the range of 2860-2820 monitored by the models. Thus, the medium-term models are currently flat and are monitoring for a breakout in either direction. 


Aggressive, Short-term, Intraday, or Professional Traders


The trading plan for Intraday aggressive models – published this morning – stated: “For today’s regular session, the intraday aggressive models indicate trading off of the 2842-2823 as the pivot band. Above 2842, the models would go long (buy) with a tight trailing stop (about 6 points). Below 2823, models would go short (sell) with a tight trailing stop (about 6 points)”

Market Action and the Outcome: 

The S&P 500 Index has opened the regular session at 2827.88 and registered session high at 2843.00 and session low at 2826.58 (as of 1:30pm EDT) – the session high breaching the upper bound by 1 point, triggering a long (bought) position for the intraday aggressive models at 2842.25. 

Also, as per the published trading plan, the long was opened with a 6-point trailing stop. Based on the session high of 2843, the trigger for this trailing stop is current (as of 1:30pm EDT) anchored at 2837. If this stop is hit, the models indicate staying flat for the rest of the session.  

(NOTE: Trailing stops work differently from traidtional stop-orders. If you are not too sure, please click here to read on the conceptual workings of a trailing-stop) 


IMPORTANT RISK DISCLOSURES AND NOTICES – READ CAREFULLY:


(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.

(ii) Do NOT make your financial investment or trading decisions based on this article; anyone doing so shall do so solely at their own risk. The author will NOT be responsible for any losses or loss of potential gains arising from any investments/trades made based on the opinions, forecasts or other information contained in this article.

(iii) Risk Warning: Investing, trading in S&P 500 Index – spot, futures, or options or in any other synthetic form – or its component stocks carries inherent risk of loss. Trading in levera
ged instruments such as futures carries much higher risk of significant losses and you may lose more than you invested in them. Carefully consider your individual financial situation and investment objectives before investing in any financial instruments. If you are not a professional trader, consult a professional investment advisor before making your investment decisions.

(iv) Past performance: This article may contain references to past performance of hypothetical trades or past forecasts, which should NOT be taken as any representation or promise or guarantee of potential future profits. Past performance is not indicative of future performance.

(v) The author makes no representations whatsoever and assumes no responsibility as to the suitability, accuracy, completeness or validity of the information or the forecasts provided.

(vi) All opinions expressed herein and/or the trading plans mentioned are subject to change at any time, without any notice to anyone.