Model Positions Based on The Forecast/Trading Plan Published Before the Market Open – TUE 08/07:
Medium-term/long-term Investors
Forecast/Trading Plan: (click here to read the full report/trading plan)
The trading plan published this morning stated: “For Tuesday’s regular session, the medium term models indicate going long on a break above of 2852 from below. If the market opens much higher, then wait for a pullback or for a break above 2862.
Being cautious of potential negative geopolitical newsflows, models indicate using a tight trailing stop of 8 to 12 points (depending on your individual trading style and risk tolerance).”
Market Action and the Outcome:
The market opened above 2852 (at 2855.92), and then reached a high of 2863.43, thus breaking above 2862. The medium term models went long (bought) at 2862.25, with a trailing stop of 10-points. The stop trigger, as of 11:45am EDT, is anchored at 2853.43.
(click here to read on the conceptual workings of a trailing-stop)
Aggressive, Short-term, Intraday, or Professional Traders
Above 2856, models would go long with tight trailing stop (about 6 points), and stay flat between 2850 and 2835; below 2835, models would go short with a tight trailing stop (about 6 points). “
In addition, the models have been carrying yesterday’s long position (entered at 2846.25) with the trailing stop anchored at 2847.25 as of yesterday close. This position is now with the stop anchored at 2857.43, locking in an 11.50 points profit on it, if triggered. (click here to see the Intraday Update from yesterday)
(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 instruments. If you are not a professional trader, consult a professional investment advisor before making your investment decisions.
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ecasts provided.
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