S&P 500 INDEX MODEL TRADING PLANS for FRI. 8/2/24
In the trading plans published yesterday, Thu. 8/1/24, we wrote: “Whether a buy-the-rumor sell-the-news will follow after the initial run up remains to be seen next week”. Late session steep stop overnight coupled with the post-NFP volatility in the pre-market session is indicating a range-expansion and increased volatility until the September rate cut.
After turning bullish with close on Wed. 7/31/24, our models turned bearish after the close on Thu. 8/1/24, following the published positional model’s bias: “It takes a daily close below 5480 for our positional models to turn bearish again”. Models would negate the bullish bias on a daily close above 5455, and it would take a daily close above 5485 for the models to turn bullish again.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 5480, 5433, 5413, 5400, or 5351 with a wide 35-point trailing stop, and going short on a break below 5397, 5370, or 5345 with a wide 35-point trailing stop.
Models indicate explicit long exits on a break below 5477, 5430, 5411, or 5350, and explicit short exits on a break above 5373 or 5347. Models also indicate instituting a break-even stop (which would trigger on a break above/below the entry level) once a position hits a 3-point profit level. Models indicate taking these signals from 09:32am EST.
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) For the execution of our models trading plans, a “break above/below” is deemed to have occurred when the index closes above/below (if you are trading by bar close) a specified trading level.
(iv) For the trades to trigger, the breaks should occur during the regular session hours starting at 9:30am ET. By design, they carry only one open position at any given time.
(v) 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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