FOMC Minutes and GDP To Set the Near Term Tone

Yesterday’s Range Breakdown to be tested today with the FOMC minutes at 2pm EST, followed by GDP release tomorrow at 8:30am EST. Unless some major upside surprise, our models indicate current downtrend to pick up momentum. Longs need to be wary of the loss of upside momentum and wait for a while before dipping their toes into the longs.

Positional Trading Models: Our positional models are wary of the potential volatility spikes this afternoon and tomorrow morning due to the major economic releases as mentioned above, and 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 WED. 02/22:

Aggressive Intraday Models: For today, our aggressive intraday models indicate going long on a break above 3941, 3993, 4020, or 4055 with a 9-point trailing stop, and going short on a break below 4051, 4014, 3988, 3983, 3967, or 3938 with a 9-point trailing stop. 

Models indicate explicit short exits on a break above 3972 or 3955, and explicit long exits on a break below 4067. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 12:31pm 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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