Traders' A.I.

Model Biases/Outlook:

With a daily close below 2766 (at 2728.37) on Thu 10/11, our models have adopted a bearish bias. This follows the “neutral” bias adapted by our models on 09/27. Nevertheless, models are sporting caution to the bears regarding a potential corrective spike up in a whipsaw manner, especially driven by geopolitical damage control headlines as well as the Q3 earnings season starting Friday 10/12. 

This bearish bias will be negated with a daily close above 2795. 

A Brief Trace Back of The Current Bias/Outlook

Thursday, 09/27, our models had negated the previously adopted bullish bias and signlaed a neutral bias between 2933 and 2887, which was later updated to 2920 and 2880. On a break below 2880 on 10/10/18, our models executed the pre-published trading plan to book 142 points in profit on a short position! 

Our models have since adopted a “cautiously bearish” bias. This caution is in view of potential spikes up in a whipsaw mode.

Trading Plans for MON, 10/15:

Medium-term/long-term Investors

The medium-term models have closed out the last position (a long) for a 12-point profit last week, opened at 2913 on Wed, 09/19 and have been flat since then (no positions). 

This was followed by another profitable short position opened on 10/11 at 2780 and then closed via a trailing stop that was triggered at 2733.51 for a profit of 46.49 points. 

With a bearish bias currently adapted, our medium term models are indicating going short today on a break below 2740 during the regular session, going long above 2796 – both with a 12-point trailing stop.  

Aggressive, Short-term, Intraday, or Professional Traders

Our aggressive intraday models carried into yesterday’s session the short opened at 2876 index level from Wednesday. As per the trading plan published the morning of Thursday 10/11, the models adjusted the trailing stop on this short to 23-points. With session low hitting 2710.51, the trailing stop was anchored to 2733.51, which was later hit and the short was closed for a whopping 142+ points profit in two days! The models are currently flat, heading into the Friday’s session. 

For today, Monday 10/15, aggressive intraday models indicate going short on a break below 2740, going long on a break above 2782 – both with a 6-point trailing stop.  

Remember that a “trailing stop” works differently from the traditional stop-loss order. Please bear in mind that the trailing stop’s trigger level would keep changing throughout the session (click here to read on the conceptual workings of a trailing-stop). 

IMPORTANT RISK DISCLOSURES AND NOTICES – READ CAREFULLY: