S&P 500 INDEX MODEL TRADING PLANS for WED. 12/13
The FOMC rate decision and the accompanying statement all but makes it clear that the Fed is affirming the market sentiment that they are done raising interest rates, and the dot-plot signaling that the rate cuts are on the horizon. This confirms the sentiment behind the November rally. Whether the markets will continue on this rally or the “buy the rumor and sell the news” will entail will depend on what Chair Powell might be saying in his presser starting at 2:30pm EST.
While a consolidation is likely probable, our models indicate no immediate threat of a bearish leg as long as the index is above 4582 on a daily close basis.
Aggressive, Intraday Trading Plans:
For today, our aggressive intraday models indicate going long on a break above 4702, 4682, 4675, 4668, or 4651 with a 12-point trailing stop, and going short on a break below 4698, 4664, or 4648 with a 9-point trailing stop.
Models indicate explicit long exits on a break below 4678 or 4672, and short exits on a break above 4635. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 02:31am 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) 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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