Traders' A.I.

Model Biases/Outlook:

With the mixed action following the midterm results, our models have adopted a cautious, “indeterminate” stand while between 2795 and 2745. As of Wednesday 11/14, this is updated to a “mildly bearish” stand while below 2755, which turned outright bearish with a daily close below 2685 on Tuesday 11/20.

As we reiterated since the midterm elections last week, “this market is still likely going to be fraught with bull traps rather than bear traps – be cautious when buying into the spikes”. 

The index has tracked our bearish forecasts and has come down to test the key support level of 2610-2620. While there might be some spiky consolidation ahead, no bullish bias is seen while the index is below 2705. 

A Brief Trace Back of The Current Bias/Outlook

Thursday, 09/27, our models had negated the previously adopted bullish bias and signaled 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.

As of the close on Wed, 10/24, our models turned bearish and continued to stay bearish while the index is below 2710. While within the 2710-2770 band, we reiterated an “indeterminate” bias.

As of Wed 11/14, we adopted a “mildly bearish” bias while below 2755. With the close below 2685 on Tue 11/20, we updated this to an outright “bearish” bias for Wed 11/21. 

With the close of Wed 11/28, our models negated this bearish bias and adopted an “indeterminate” bias for Thu 11/29. We reiterate this indeterminate bias for today, Mon 12/10, while above 2618.   

Trading Plans for MON, 12/10:

Medium-term/long-term Investors

Our medium-term models started the month of December with indeterminate state and stayed out of the markets. 

Aggressive, Short-term, Intraday, or Professional Traders

Today’s Plan/Forecast: For today, Monday 12/10, our aggressive, intraday models indicate going short on a break below 2620 with a 8-point trailing stop, and going long on a break above 2658 with a 6-point trailing stop. For the trades to trigger, the breaks should occur during the regular session hours (9:30am-4:00pm EST).      
  
NOTE: 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: