S&P 500 INDEX MODEL TRADING PLANS for WED. 05/17
Our stance last couple of weeks has been: “Our models are indicating an initial bias towards an inflection point coming soon. Barring any unexpected bullish development showing up on the horizon, chances are that this could be unwinding to the downside”.
Looks like Biden and McCarthy potentially coming close to some kind of agreement on debt ceiling and avoid a potential U.S. default is being masqueraded as that “unexpected bullish development” (which almost everyone expected anyway).
Whether this move is going to be the start of the next leg up or to be a classic pump-and-dump remains to be seen.
Positional Trading Models: Our positional models are flashing a potential bull trap ahead if this morning’s move up proves unsustainable. Models indicate going short at the close if today’s close is to be below 4147 (activated at 3:59pm). If opened a short, models indicate instituting a hard stop at 4187.
By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops – if any – being active in the overnight session.
Aggressive/Intraday Models: Our aggressive, intraday models indicate the trading plans below for today.
Aggressive, Intraday Trading Plans for WED. 05/17:
For today, our aggressive intraday models indicate going long on a break above 4165, 4153, 4132, 4102, or 4091 with a 9-point trailing stop, and going short on a break below 4158, 4147, 4129, 4099, or 4088 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 4109, and explicit short exits on a break above 4116. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 01:31pm ET 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.
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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