Traders' A.I.

Model Biases/Outlook:

With the mixed action following the midterm results, our models have adopted a cautious, “indeterminate” stand while between 2795 and 2745. This is now updated to a “mildly bearish” stand while below 2755, which would turn outright bearish when below 2695.

As we reiterated since the midterm elections last week, “this market is still likely going to be fraught with bull traps rather than bear traps – be cautious when buying into the spikes”. 

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.

As of the close on Wed, 10/24, our models turned bearish and continue to stay bearish while the index is below 2710. While within the 2710-2770 band, we reiterated an “indeterminate” bias for the market till 11/07.

As of the close on Wed, 11/07, our models negated the indeterminate bias and adopted a “cautiously bullish” bias. This is flipped back to “indeterminate” bias following the midterm election results action and will remain so while the index is between 2795 and 2745. 

As of today, Wed 11/14, we adopted a “mildly bearish” bias while below 2755.  

Trading Plans for WED, 11/14:

Medium-term/long-term Investors

Following big wins during the volatile deep moves last few weeks, the medium-term models have sat out the markets most of the last week, waiting for the mid terms to be over. 

They are starting the post-mid-terms new trading week flat and have booked the following performance so far in the week: 

Monday 11/12: Booked 21.25 points in profit on a short.
Tuesday 11/13: Booked 10.50 points in profits on a short. 

Last Published Trading Plan/Forecast: “For today, Tuesday 11/13, our medium-term models indicate going long on a break above 2755, and going short on a break below 2740 during the regular session – with a 10-point trailing stop” (click here to read the full forecast and/or to verify this claim).


The Outcome: The index broke below the 2740 level early in the session, triggering a short position with a 10-point trailing stop. By 1030am EST, the index reached around 2719.48 level, thus dragging the trailing stop trigger to 2729.48. This stop was hit in the next 15 minutes, booking profits of 10.50 points. The models stayed flat for the rest of the session.    

Today’s Plan/Forecast: For today, Wednesday 11/14, our medium-term models indicate going long on a break above 2755, and going short on a break below 2730 during the regular session – with a 10-point trailing stop.  

Aggressive, Short-term, Intraday, or Professional Traders

Last Published Trading Plan/Forecast: “For today, Tuesday 11/13, our aggressive intraday models indicate going long on a break above 2755, and going short on a break below 2740 (same levels as the medium-term models for today) during the regular session – with a 7-point trailing stop” (click here to read the full forecast and/or to verify this claim).

The Outcome: The index broke below the 2740 level early in the session, triggering a short position with a 7-point trailing stop. By 1030am EST, the index reached 2719.48, thus dragging the trailing stop trigger to 2726.48. This stop was hit in the next 15 minutes, booking profits of 13.50 points. The models stayed flat for the rest of the session.    

  

Today’s Plan/Forecast: For today, Wednesday 11/14, our aggressive intraday models indicate going long on a break above 2737, and going short on a break below 2727 during the regular session – with a 8-point trailing stop.  

NOTE: 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 re
ad on the conceptual workings of a trailing-stop). 

IMPORTANT RISK DISCLOSURES AND NOTICES – READ CAREFULLY: