S&P 500 INDEX MODEL TRADING PLANS for WED. 04/26
Otherwise impressive earnings from Microsoft, Google, McDonalds, and Chipotle that all seem to demonstrate that major firms have pricing power to absorb the inflationary pressures fail to push up the markets in a meaningful way, as per the price action so far in the session.
No bullish trend in sight for these markets that have been choppy for a while. This should raise some caution to bulls, while the bears need to be patient for a few more days before confirming any bearish bias. Our models have turned to cautiously bearish bias as of this morning.
Positional Trading Models: Our positional models, while flashing early bearish signs, indicate no trading plans for today.
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.
Intraday/Aggressive Models: Our aggressive, intraday models indicate the trading plans below for today.
Trading Plans for WED. 04/26:
Aggressive Intraday Models: For today, our aggressive intraday models indicate going long on a break above 4115, 4103, 4086, or 4072 with an 8-point trailing stop, and going short on a break below 4099, 4079, or 4068 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 4111. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 10:46 am 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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