Rising Yields Back In Focus

With the banking chaos now a bit settled, the markets seem to be focusing back on Interest rates (and, hence inflation). The rising yields today seem to be holding back the markets. However, our models indicate the risk for the markets to spike to the upside rather than to the downside, owing to the potential for quarter-end window dressing. We will get more clarity on this potential as we approach Friday. For today, the models continue to be in an indeterminate state.

Positional Trading Models: Only nimble, opportunistic trading – as opposed to positional trading – could be safe in these waters. Hence, our positional models are indicating to stay on the sidelines for yet another 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 TUE. 03/28:

Aggressive Intraday Models: For today, our aggressive intraday models indicate going long on a break above 3986, 3976, 3965, or 3957  with a 9-point trailing stop, and going short on a break below 3983, 3962, or 3955 with a 9-point trailing stop. 

Models indicate explicit long exits on a break below 3972. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 11:45am 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.

(WHAT IS THE CREDIBILITY and the PERFORMANCE OF OUR MODEL TRADING PLANS over the LAST WEEK, LAST MONTH, LAST YEAR? Please click here to see for yourself how our pre-published model trades have performed so far! Seeing is believing!) 

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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