S&P 500 INDEX MODEL TRADING PLANS for THU. 06/08
The precarious rally of the last month has been baffling many, with the lack of the breadth in the rally was concentrated in just a handful of big-tech names. With the major news cycles in the rear view mirror, that red hot bull could be losing steam. If the rally does not dissipate this week, then it could be indicative of yet another leg up that could obliterate the shorts.
As we first stated to start this week, if you are a bull, it may be prudent to take some profits off the table; if you are a bear, you may begin looking for entries.
Positional Trading Models: Following yesterday’s published trading plans, our positional models positional models went short yesterday at 4273.83 with a hard stop at 4307. If the stop is hit today, the models will re-open a short on a break below 4294, with a hard stop at 4307.
By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops – if any – being active in the overnight session.
Aggressive/Intraday Models: Our aggressive, intraday models indicate the trading plans below for today.
Aggressive, Intraday Trading Plans for THU. 06/08:
For today, our aggressive intraday models indicate going long on a break above 4296 with a 9-point trailing stop, and going short on a break below 4292, 4279, or 4268 with a 9-point trailing stop.
Models indicate explicit short exits on a break above 4285 or 4273. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 12:46pm ET or later.
By definition the intraday models do not hold any positions overnight – the models exit any open position at the close of the last bar (3:59pm bar or 4:00pm bar, depending on your platform’s bar timing convention).
To avoid getting whipsawed, use at least a 5-minute closing or a higher time frame (a 1-minute if you know what you are doing) – depending on your risk tolerance and trading style – to determine the signals.
NOTES – HOW TO INTERPRET/USE THESE TRADING PLANS:
(i) The trading levels identified are derived from our A.I. Powered Quant Models. Depending on the market conditions, these may or may not correspond to any specific indicator(s).
(ii) These trading plans may be used to trade in any instrument that tracks the S&P 500 Index (e.g., ETFs such as SPY, derivatives such as futures and options on futures, and SPX options), triggered by the price levels in the Index. The results of these indicated trades would vary widely depending on the timeframe you use (tick chart, 1 minute, or 5 minute, or 15 minute or 60 minute etc.), the quality of your broker’s execution, any slippages, your trading commissions and many other factors.
(iii) These are NOT trading recommendations for any individual(s) and may or may not be suitable to your own financial objectives and risk tolerance – USE these ONLY as educational tools to inform and educate your own trading decisions, at your own risk.
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