S&P 500 INDEX MODEL TRADING PLANS for MON. 3/25/24
With the CPI, PPI, and the FOMC all out of the way, and Powell almost confirming that the Fed is at the “Peak” of the restrictive regime and the markets convinced that rate-cuts are on the horizon…some could be wondering “now, what?”. With new record targets being slapped on the indexes day in and day out, is there going to be a “buy the rumor, sell the news” setting in, or is the break-neck bull run since November going to continue? That is the question some are pondering, with no obvious answer anywhere of course. We have to wait how the markets evolve this week to get any meaningful clues into this.
Until otherwise noted, our models continue to indicate that the risk continues to be markets pushing to the upside than to the downside, so, bears – if any still left out there – need to be cautious about jumping the gun and taking on premature shorts. A daily close below 5150 is needed for the current bullish bias to be negated.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 5262, 5247, 5232, 5218, or 5199 with a 9-point trailing stop, and going short on a break below 5229, 5215, 5195, or 5181 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 5256 or 5244, and explicit short exits on a break above 5184. Models also indicate instituting a break-even stop (which would trigger on a break above/below the entry level) once a position reached a 3-point profit level. Models indicate taking these signals from 11:31am 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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