S&P 500 INDEX MODEL TRADING PLANS for FRI. 08/11

Our trading plans published yesterday stated: “Our models continue to indicate choppy markets until this resolves in either direction, notwithstanding this morning’s push up following the rising-not-so-fast inflation numbers”. Today’s PPI numbers have validated why we didn’t give too much weight to yesterday morning’s CPI numbers and the markets’ bounce following that.

Currently, there doesn’t appear to be any specific factor driving the markets in any direction, leading to choppy markets to continue. The level of 4495-4505 is now the immediate key level for both Support and Resistance. 4445-4452 is the next support level, a daily close below which will turn our models cautiously bearish.

Aggressive, Intraday Trading Plans:

For today, our aggressive intraday models indicate going long on a break above 4501, 4492, 4481, or 4452 with a 8-point trailing stop, and going short on a break below 4498, 4478, 4461, or 4447  with a 9-point trailing stop. 

Models indicate explicit long exits on a break below 4488, and explicit short exits on a break above 4465. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 09:36am EST or later.

By definition the intraday models do not hold any positions overnight – the models exit any open position at the close of the last bar (3:59pm bar or 4:00pm bar, depending on your platform’s bar timing convention).

To avoid getting whipsawed, use at least a 5-minute closing or a higher time frame (a 1-minute if you know what you are doing) – depending on your risk tolerance and trading style – to determine the signals.

(WHAT IS THE CREDIBILITY and the PERFORMANCE OF OUR MODEL TRADING PLANS over the LAST WEEK, LAST MONTH, LAST YEAR? Please click here to see for yourself how our pre-published model trades have performed so far! Seeing is believing!) 

NOTES – HOW TO INTERPRET/USE THESE TRADING PLANS:
(i) The trading levels identified are derived from our A.I. Powered Quant Models. Depending on the market conditions, these may or may not correspond to any specific indicator(s).
(ii) These trading plans may be used to trade in any instrument that tracks the S&P 500 Index (e.g., ETFs such as SPY, derivatives such as futures and options on futures, and SPX options), triggered by the price levels in the Index. The results of these indicated trades would vary widely depending on the timeframe you use (tick chart, 1 minute, or 5 minute, or 15 minute or 60 minute etc.), the quality of your broker’s execution, any slippages, your trading commissions and many other factors.
(iii) These are NOT trading recommendations for any individual(s) and may or may not be suitable to your own financial objectives and risk tolerance – USE these ONLY as educational tools to inform and educate your own trading decisions, at your own risk.

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