Model Positions Based on The Forecast/Trading Plan Published Before the Market Open – FRI 08/17:


Medium-term/long-term Investors

Forecast/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. Meditum-term models indicate waiting for a daily close below 2820 to turn bearish. “ (click here to read the full report/trading plan)


Market Action and the Outcome:

The S&P 500 Index has opened the regular session at 2838.32 and registered session high at 2846.72 and session low at 2833.73 (as of 12:15pm 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 on a daily close (hence, the medium-term models will stay flat until the end of the session). 


Aggressive, Short-term, Intraday, or Professional Traders

Forecast/Trading Plan:

The trading plan for Intraday aggressive models – published this morning – stated: “For today’s regular session, the intraday aggressive models indicate trading off the 2845-2825 as the pivot band. Above 2845, the models would go long (buy) with a tight trailing stop (about 6 points). Below 2825, models would go short (sell) with a tight trailing stop (about 6 points).“ (click here to read the full report/trading plan)

Market Action and the Outcome: 

The S&P 500 Index has opened the regular session at 2838.32 and registered session high at 2846.72 and session low at 2833.73 (as of 12:15pm EDT) – tripping into a long position on the break above of 2845. 
Also, as per the published trading plan, the long was opened with a 6-point trailing stop. Based on the session high of 2846.72, the trigger for this trailing stop is currently (as of 12:15pm EDT) anchored at 2840.70 (on the index level).

(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 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 in
struments. 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.