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. 

The last week’s bearish bias was negated with yesterday’s daily close above 2795. Our models are currently in an “indeterminate” state and expect continuation of choppy, whipsaw moves in both directions over the next couple of weeks. These moves to be especially driven by the Q3 earnings season that started on Friday, 10/12 as well as the geopolitical headlines.

The index has to register a daily close above 2825 for the models’ bias to turn bullish, and below 2780 to turn bearish.  

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.

With the sharp spike up with a daily close above 2795 on Tuesday, 10/16, our models have negated the bearish bias and are currently sporting an “indeterminate” bias within the range of 2825 and 2780. 

Trading Plans for WED, 10/17:

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 (no positions) till 10/11. 

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. 

The models went long at 2796.25, on the break above of 2796 on Tuesday, 10/16, with a 12-point trailing stop which is currently anchored at 2801.50. Models indicate carrying this long until the trailing stop is hit, and then stay flat for the rest of the session.  

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 last week!  

The trading plan for Monday 10/15 – reiterated for Tuesday 10/16 – indicated going short on a break below 2740, and going long on a break above 2782 – both with a 6-point trailing stop. The long was filled at 2782.25 and the models are currently sitting on a profitable long position with the trailing stop anchored at 2807.50. 

For today, Wed 10/17, the models indicate carrying this long position until hit by the stop. If the stop hits and the long is closed (which would result in 19+ points profit at current levels), the models indicate going short below 2802 with a 8-point trailing stop, and going long above 2816 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: