Current Positions and Biases of our S&P 500 Index Trading Models:
Based on the Trading plans published last night (click here to read the full Forecast), our models are currently long (bought) and have trailing stops placed.
As of the writing of this (@2:45pm EDT), the index posted a session low of 2805.89 and a session high of 2816.76. The models are monitoring carefully for the 2806.76 level where the trailing stops would trigger on both the positions. Both the models have survived the last night’s 2804.19 level on the stop trigger as the market came to as low as 2805.89 but not hit the 2804.19 level!
Current/Updated Trading Plans:
Medium-term/long-term Investors
Medium-term models are currently long – bought at 2810.50. As published last night, the models had the trailing stop trigger at 2804.19, which has been adjusted higher during today’s session to 2806.76 (10-points trailing from the high).
If the stop is hit, then the models would stay flat (no positions) for the remaining time of the regular session. Instead, if the market continues to go higher, the positions will be carried forward locking in the profits until the stop is triggered.
(click here to read on the conceptual workings of a trailing-stop)
Aggressive, Short-term, Intraday, or Professional Traders
These models are currently long – bought at 2795.50. As published last night, the models had the trailing stop trigger at 2804.19, which has been adjusted higher during today’s session to 2806.76 (10-points trailing from the high).
If the stop is hit, then the models would stay flat (no positions) for the remaining time of the regular session. Instead, if the market continues to go higher, the positions will be carried forward locking in the profits until the stop is triggered.
(click here to read on the conceptual workings of a trailing-stop)
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.