Still Trying for New Highs?
While the S&P 500 Index has registered a record daily close this week, the intra-day high record is yet to be broken. Only some unexpectedly bullish earnings headlines can make this possible. Based on the post-daily-record action so far, our models are not betting on it but are taking a bit of a cautionary stance until a close above 2940 is witnessed.
As has been indicated here for the last few weeks, extreme caution should be exercised if shorting this market while the S&P 500 Index is above 2905 (updated from the earlier level). A daily close below 2895 (updated from the earlier level) has to be registered for our models to negate the current bullish bias.
Below, you will find our models’ trading plans for today:
Trading Plans for THU, 04/25:
(please click here to check the hypothetical trading results of our trading plans published for yesterday and earlier)
NOTE: The index by itself is NOT tradable. The model plans here based on the S&P index level can be used to trade any instrument that tracks the index – the futures on the index (ES, ES-mini), the options on the futures (ES options), the SPX options, the ETF SPY are just a few examples of the instruments one can adapt these plans to.
These plans are NOT an investment advice to buy or sell any specific securities but are intended to aid – as informational, educational, and research tools – in arriving at your own investment/trading decisions. Always consult a Financial Advisor before making your investment/trading decisions if you are not knowledgeable about these markets.
Medium-Frequency Models: For today, Thursday 04/25, our medium-frequency models indicate staying out of the markets for the day.
Aggressive Intraday Models: For today, Thursday 04/25, our aggressive intraday models indicate going long on a break above 2940, with an 8-point trailing stop. Models also indicate going short on a break below 2917 with an 8-point trailing stop.
IMPORTANT RISK DISCLOSURES AND NOTICES – READ CAREFULLY:
(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.