In the Intraday Alert published this morning at 10:02am EDT (please click here to see the report) you read as below:
“With the index breaking above 2735, our Intraday, Aggressive models have gone long (bought) at 2735.50, with a trailing stop of 7 points. The models have a take-profit sell order at 2741.50 (index level), as the 2740-45 range is anticipated to be a strong resistance. The models would reinstate another buy order IF the index clears that resistance band and crosses 2750.
Our medium-term models are waiting for a break of 2750, as the 2740-45 level could prove to be a strong resistance.”
After the report was published, the index did probe the 2740-45 level (it reached the session high of 2746.09) only to fail that level and drop lower.
As per the alert, the models were already out of the long (bought) position at 2741.50 – locking in 6 points (netting $300 per e-mini contract traded, or $1500 per full S&P 500 contract traded, or some other decent sum based on whether you traded the ETF SPY or a CFD or something else) and were flat!
To boot, the index later did approach the other key level the models indicated on the lower side – the 2710 level – with the index reaching a low of 2710.77 so far, before bouncing back to the 2715 area (as of 2:50pm EDT)!!
CRYSTAL BALL?
So…the report published hours before the opening of the market, and the alert published within 30 minutes of the opening have served as if they were some Crystal Balls and rewarded the followers handsomely! And, regular readers would have noted this kind of performance repeatedly by now!
And, as regular readers might have gotten used to – we would like to reiterate that our quantitative models (or anyone’s) do NOT work so precisely all the time! Do NOT place “bet the farm” kind of trades based on our models (or, anyone’s models). Always be cognizant of the probability of the trade going wrong, and trade with due respect to your own financial situations and trading style and risk appetite.
UPDATED TRADING LEVELS FOR THE REST OF THE SESSION
Both term models are currently flat and indicate remaining flat between 2745 and 2700 (updated) for the rest of the Wed session, with tight stops and profit targets (around 5 points).
Intraday models indicate potential testing of the 2705-2695 level, with probably spikes in either direction. Both models indicate going short (sell) on a break below 2690, with a 7-point trailing stop.
To see the full report with original key trading levels for both medium-term and intraday/aggressive models, please click here for the full trading plans.
Happy Investing/Trading!