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 two trading sessions, our models are currently flashing cautionary bearish stand but have NOT turned bearish yet. Today’s market action might push them to take a clear directional bias.  

Considering the ongoing earnings season, this clarity is likely to develop in the markets within these couple of weeks, only after which can there be a directional bias embraced by our medium-term models. 

Our aggressive intraday models would continue to indicate key trading levels on a day-to-day basis in the sections below.      

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 whipsaw moves in both directions with no real movement since Friday 10/12, our models are currently sporting an “indeterminate” bias. Last two days’ close below the 2767 level coupled with the sharp drop below 2700 and then fast spike up is leaving our models in an indeterminate state for now.   

Trading Plans for WED, 10/24:

Medium-term/long-term Investors

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

Yesterday’s trading plan stated: “For today, Tuesday 10/23, models indicate carrying this short position (entered at 2758 on Monday, 10/22) with a widened 12-point trailing stop. If the stop is hit and the position is closed, then the models would stay flat for the rest of the session.” (click here to read the full report and/or to verify this claim). 

Yesterday, the index broke below 2700 level to reach as low as 2691.43, pulling the trailing stop on this short to 2703.43. The index then recovered and by 1030am EST, broke above the stop level, thus closing the short at 2703.50 for a profit of 55 points! Yes, as some of our regular readers have reached out with appreciation, it is not easy to find any publication that has given such a trading plan with clear entry and exit points to yield such profitable trades even in the midst of such volatility in the markets! Thank you!

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. 

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!

For the last trading session, the models bagged yet another winning trade, where the forecast published before the markets opened Monday stated: “Hence, our models indicate trading off of the 2710 level as the pivot point during the regular session: go long on a break above 2710 and go short on a break below 2710 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 2710 level triggering a short position with the 8-point trailing stop by 10am EST. The session low was registered at 2691.43 within the next thirty minutes, anchoring the trailing stop at 2699.43, which was hit later in the session within the next 30 minutes, closing the short position for a profit of 10.5 points on the index! The models then stayed flat for the rest of the session. 

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. 

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: