S&P 500 INDEX MODEL TRADING PLANS for FRI. 10/27
Some of this week’s earnings disappointments seem to indicate what could be in store for the street earnings down the road. Geopolitical risks, high interest rates, sticky inflation, extremely strong jobs market, early signs of consumers beginning to scale back…yet, retail bullish positioning flies against all of this. Powell’s speech last week provided a clear indication that the Fed is relentless in their fight against the sticky inflation and are willing to risk an economic slowdown to win that fight.
We have been publishing for the last two weeks the following: “Our models indicate 4310 as the level to close above for the current bearish bias to be negated”. On Thu. 10/19, we wrote: “The market tested this level briefly yesterday, Wed. 10/18, but bounced right back up to close a few points above it. This level may come into play again today, and how the price action ends today with respect to this level could give us some indications of near-term market direction”. The index closed well below that level, and our models adapted a bearish bias and will continue to sport that bias while the index is below 4310.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 4195, 4178, 4152, 4136, or 4116 with a 10-point trailing stop, and going short on a break below 4192, 4176, 4149, 4132, or 4113 with a 10-point trailing stop.
Models indicate explicit short exits on a break above 4163 and long exits on a break below 4160. Models also indicate a break-even hard stop once a trade gets into a 9-point profit level. Models indicate taking these signals from 10:01am 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.
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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