Markets Dreading Inflation Numbers This Week
This week’s Core Inflation Numbers coming out on Thursday have the markets nervous, with some already predicting seven rate increases by the Fed! Unless it proves to be a falling knife, bears need to be cautious on Thursday and Friday, for a sudden spike up could ensue. Till then, it is likely to be choppy.
As we wrote last Friday, 02/04: “At this point, it’s all going to be about interest rates, inflation, and interest rates!”. That is still the primary theme for this week.
Positional Trading Models: Our positional models indicate going long on a break above 4507 with an 18-point hard stop, and going short on a break below 4475 with a 25-point hard stop.
Intraday/Aggressive Models indicate the trading plans below for today:
Trading Plans for TUE 02/08:
Aggressive Intraday Models: For today, our aggressive intraday models indicate going long on a break above 4487, or 4475 with an 8-point trailing stop, and going short on a break below 4495 or 4483, with a 9-point trailing stop.
Models also indicate long exits on a break below 4490, and short exits on a break above 4472.
To avoid getting whipsawed, use at least a 1-minute closing or a higher time frame – depending on your risk tolerance and trading style – to determine the signals.
IMPORTANT RISK DISCLOSURES AND NOTICES – READ CAREFULLY:
(i) This article contains personal opinions of the author and is NOT representative of any organization(s) he may be affiliated with. This article is solely intended for informational and educational purposes only. It is NOT any specific advice or recommendation or solicitation to purchase or sell or cause any transaction in any specific investment instruments at any specific price levels, but it is a generic analysis of the instruments mentioned.
(ii) Do NOT make your financial investment or trading decisions based on this article; anyone doing so shall do so solely at their own risk. The author will NOT be responsible for any losses or loss of potential gains arising from any investments/trades made based on the opinions, forecasts or other information contained in this article.
(iii) Risk Warning: Investing, trading in S&P 500 Index – spot, futures, or options or in any other synthetic form – or its component stocks carries inherent risk of loss. Trading in leveraged instruments such as futures carries much higher risk of significant losses and you may lose more than you invested in them. Carefully consider your individual financial situation and investment objectives before investing in any financial instruments. If you are not a professional trader, consult a professional investment advisor before making your investment decisions.
(iv) Past performance: This article may contain references to past performance of hypothetical trades or past forecasts, which should NOT be taken as any representation or promise or guarantee of potential future profits. Past performance is not indicative of future performance.
(v) The author makes no representations whatsoever and assumes no responsibility as to the suitability, accuracy, completeness or validity of the information or the forecasts provided.
(vi) All opinions expressed herein are subject to change at any time, without any notice to anyone.
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