Current Positions and Biases of our S&P 500 Index Trading Models:
Based on the Trading plans published last night (click here to read the full Forecast), the positions of our models are:
Medium-term/long-term Models
The forecast mentioned: “Medium-term models indicate a bullish bias while the index is above 2804. No short trade indicated until all the way below 2790.” (click here to read the full Forecast)
The index so far (as of this writing, 1:10pm EDT) has registered a session low of 2801.27 and a high of 2809.70. Consequently, the medium-term models have entered a long position (bought) at 2804.25, with a planned stop-loss at 2796.25.
(click here to read on the conceptual workings of a trailing-stop)
Aggressive, Short-term, Intraday Models
The forecast mentioned: “Aggressive short-term models indicate bullish bias while above 2810. No short trade indicated until all the way below 2803. If 2803 is breached, models indicate going short with an initial target of 2794 and a stop-loss of 6-9 points (depending on your individual trading style and risk appetite). Stay flat between 2810 and 2803. “
In the first five minutes of the regular session’s open, the models indicated getting filled at 2802.75 on the planned short position (sold). Also, the models placed a stop loss of 9 points – the upper end of the indicated stop loss levels – to close for a loss at 2811.75, which did not get triggered yet (as of this writing @ 1:30pm EDT).
Thus, the intraday models are short at 2802.75, with an initial stop loss at 2811.75, which the models have currently adjusted to 2808.50. If this stop is not hit, the models would close this position at the session close.
(click here to read on the conceptual workings of a trailing-stop)
IMPORTANT NOTICES & DISCLAIMERS – 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 leveraged 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 are subject to change at any time, without any notice to anyone.