Traders' A.I.

Model Biases/Outlook:

Due to the fact that the index has closed below the highly critical technical support level of the 200-DMA currently around 2767 over the last three trading sessions, our models are sporting a bearish bias, with a possibility for a spike up in the coming days. The bearish pressure will continue as long as the index is below the 2710 level and there is no bullish territory in sight until all the way above 2780.

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.

Last three days’ close below the 2767 level coupled with the sharp drop below 2700 for the last two sessions in a row has led our models to currently sport a bearish bias as of the close on Wed, 10/24.   

Trading Plans for THU, 10/25:

Medium-term/long-term Investors

Following big wins during the volatile deep moves this month, the medium-term models are currently flat and sporting a bearish bias. 

Yesterday’s trading plan stated: “For today, Wednesday 10/24, our medium-term models indicate waiting for a daily close above 2775 or below 2725. Hence, they would stay out of the markets today.” (click here to read the full report and/or to verify this claim). Consequently, the medium-term models stayed flat through the session. 

For today, Thursday 10/25, our medium-term models indicate going short on a break below 2650 during the regular session. No long trade indicated until all the way above 2710. Any trades opened on either side shall be opened with a 15-point trailing stop. 

Aggressive, Short-term, Intraday, or Professional Traders

Our aggressive intraday models closed a short position with a whopping 142+ points profit during the sharp drop in the markets the week ending 10/13/18! This was followed by a couple more big wins, despite the market not really moving much farther from the close of last Friday, 10/12! And, then a couple more winning trades during the sharp down moves last two sessions. 

For the last trading session, the models bagged yet another winning trade, where the forecast published before the markets opened on Wednesday stated: “For today, Wednesday 10/24, our aggressive intraday models indicate going long on a break above 2750 and going short on a break below 2720 during the regular session – both with an 8-point trailing stop. ” (click here to read the full report and/or to verify this claim).  

The index crossed the 2720 level in the early session, triggering a short position with the 8-point trailing stop by 11am EST. After reaching a low around 2703, the index went up above 2720 in the next hour, triggering the trailing stop at 2711, thus closing the short with a profit of about 9 points. 

Later in the session, the index broke below 2720 again triggering another short position, which rode all the way down to the session lows at 2651.89, whereby the trailing stop was anchored to 2659.89 on the index level. As of the close of the session on Wednesday 10/24, this short position is still open with decent profits of about 60 points! 

For today, Thursday 10/25, our aggressive intraday models indicate carrying the current short position until it is hit (either at 2660 or below). If it is hit, the intraday models indicate staying flat for the rest of the session.  

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: