Current Positions and Biases of our Models:


Based on the Trading plans published last night (click here to read the full Forecast), our models – both the medium-term and the intraday/agressive/short-term models – have exited the profitable long positions (at 2798.50 and 2798 resepectively) and are currently flat (no positions). 

The models are monitoring the market action around the 2805-2795 band for possible inferences about the potential directional bias forming. Currently, both term models are in an “indeterminate” state and are flat. 

On the upside, 2805-2815 band would be a hard battle for the bulls to clear. On the downside, 2780-2770 is the key; if broken below 2770, indications are for consolidation towards the 2750-2740 region. 

Current/Updated Trading Plans:


Medium-term/long-term Investors


Medium-term models indicate bullish bias while above 2815. No short trade indicated until all the way below 2770. If entered into a long positions, indications are to place a 10-point trailing stop and let the position run or let the stop hit. 

(click here to read on the conceptual workings of a trailing-stop)


Aggressive, Short-term, Intraday, or Professional Traders


Intraday, aggressive, short-term models indicate bullish bias while above 2804. No short trade indicated until below 2788, with very tight stops (5 to 8 points). If enter into a long or short position, place a 5-to-8 point trailing stop (depending on your trading style and risk appetite) and let the position run or let the stop hit. 


We are currently in a bull territory, and caution should be exercised when opening short positions (selling short) above 2770 – it might be wiser to protect from sudden spikes up with tight stop-losses. 

IMPORTANT NOTICES & DISCLAIMERS – 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 instruments. 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 are subject to change at any time, without any notice to anyone.