Collateral Damage or Covert Help?
(after being stuck in an indeterminate state for a week, our models are out today with their trading plans for the day)
The banking meltdown seems to be the collateral damage from the Fed’s battle with inflation. Chair Powell tried his best to be balanced in his press conference post-FOMC yesterday, trying to indicate his preparedness to fight the inflation while indicating he is aware of – and, is on top of containing – the collateral damage that seems to be manifesting in the form of the crisis in regional banks.
The crisis – and the resulting potential economic slowdown – could be a helping hand to the FOMC in its fight. The next leg in the markets will depend on how it is interpreted by the investors. For now, markets seem to be still parsing and confused as indicated by the whipsaw action so far.
Positional Trading Models: Our positional models are indicating to stay on the sidelines 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.
Intraday/Aggressive Models: Our aggressive, intraday models indicate the trading plans below for today.
Trading Plans for THU. 03/23:
Aggressive Intraday Models: For today, our aggressive intraday models indicate going long on a break above 4005, 3996, or 3982 with a 9-point trailing stop, and going short on a break below 4000, 3993, or 3978 with a 9-point trailing stop.
Models indicate explicit short exits on a break above 3864. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 11:30am 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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