Both Short-Term and Medium-Term Models Locking in Profits with Stops
Our forecast published last night came true in terms of the lurking bear coming out in the open right at the opening of the session, and stayed that way throughout the session so far (as of 11am EDT, Monday, 06/25).
As per the trading plans in the forecast (click here for the full report), the medium term models also opened a short (sell) at the 2735 level on the S&P 500 Index, and are sitting on decent profits under two hours of opening. Models initiated a stop loss at 2732.
The short term models have been sitting on a profitable short positions from 2759.50, with a stop loss at 2766 which was never hit. The models are now adjusting the stop order to 2732 to lock in profits (this would be 27.50 points on the S&P 500, which would amount to $1250 on one e-mini futures contract. Depending on the instrument you used, for example the ETF SPY, your p/l may vary significantly).
It is likely that we have seen the low for the day at 2718. If you are sitting on profitable short positions, you can take the profits now or leave a stop order as above and let it ride or hit.
As the bear is out now in the open, today’s close will likely determine the directional bias for the rest of the week. Both short term and medium term models are currently biased to lock in the profits on any intraday moves and then let the day’s close determine the next positioning.
Happy and Safe Investing/Trading!