The Bulls are Down Exhausted and the Bears are Celebrating – for Now
The damage to the market bulls from the trade war’s backfiring leaves the bears emerging out into the open. Yet, the path ahead for the markets is not necessarily clear in the directional bias – both sides have to tread cautiously and fight to establish their territory.
Below, you will find our models’ trading plans for today:
Trading Plans for TUE, 05/14:
(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, Tuesday 05/14, our medium-frequency models are sporting a cautiously bearish bias. Models indicate going short on a break below 2812 with a 10-point trailing stop, and going long on a break above 2832 with a 10-point trailing stop. Additionally, the models indicate a long-exit on a break below 2838 or 2828 and a short exit on a break above 2804.
Aggressive Intraday Models: For today, Tuesday 05/14, our aggressive intraday models indicate going long on a break above 2828 or 2822 or 2812 – both with an 8-point trailing stop, and going short on a break below 2838 or 2824 or 2818 – both with an 8-point trailing stop.
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.