S&P 500 INDEX MODEL TRADING PLANS for THU. 05/11
As we wrote in our published Trading Plans yesterday, “The post-CPI market action so far is underwhelming at best – looks like the markets are waiting for a confirmation from the PPI release tomorrow”. The post-PPI data this morning proved to be even more of a non-event. The pre-open market action so far does not seem to have any major driver other than the simmering regional bank crisis concerns with PacWest deposit drain in the news.
Our models are indicating an initial bias towards an inflection point coming soon. Barring any unexpected bullish development showing up on the horizon, chances are that this could be unwinding to the downside – we might see a confirmation in the next few days.
Positional Trading Models: Our positional models are waiting for the PPI release tomorrow to form a positional trading bias. For now, they are in an indeterminate mode and indicate no positional trading plans for the day.
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. 05/11:
For today, our aggressive intraday models indicate going long on a break above 4160, 4148, 4137, 4130, 4124, or 4119 with a 9-point trailing stop, and going short on a break below 4144, 4134, 4128, 4122, or 4117 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 4157 or 4141. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 09:31am 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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