Debt Ceiling Deal Euphoria - Rekindled

1 cze 2023

S&P 500 INDEX MODEL TRADING PLANS for THU. 06/01

We started this trading week yesterday with these words: "Now that the Debt Ceiling drama is apparently over ("apparently" is the keyword there), can the markets continue to be intoxicated on the nVidia-A.I. exuberance and continue the bullish leg or get back to the macro-economic fundamentals of inflation, valuation, china-slowdown (bad news good news here, with hopes of China stimulus?) etc.? A couple of sessions into this shortened week shall reveal. Till then, caution might be warranted on the part of the bulls".

We started last trading week with our trading plans on Monday titled: "Debt Ceiling Deadline Likely to Whipsaw the Markets", and these words: "Expect the approaching debt ceiling deadline to attract both bulls and bears to heightened speculation, resulting in some whipsaw movements until the deadline passes and the dust settles".

The dust might be settling this week or early next week. The direction in which it settles would determine the next directional bias in the markets. Currently, our directional models indicate no bias and are in an indeterminate state.

Positional Trading Models: Following the trading plans published earlier in the week, our positional models went short on the close yesterday, at 4179.84, with a 52-point trailing stop. With the session's low recorded at 4171.64, the current trigger of the stop is at 4231.84. If this is hit, the models indicate going short again on a break below 4228 with a hard stop at 4242.

By definition, positional trading models may carry the positions overnight and over multiple days, and hence assume trading an instrument that trades beyond the regular session, with the trailing stops - if any - being active in the overnight session.

Aggressive/Intraday Models: Our aggressive, intraday models indicate the trading plans below for today.

Aggressive, Intraday Trading Plans for THU. 06/01:

For today, our aggressive intraday models indicate going long on a break above 4222, 4198, 4187, or 4156 with a 9-point trailing stop, and going short on a break below 4125, 4194, 4184, or 4150 with a 9-point trailing stop. 

Models indicate explicit exits for the day. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 01:46pm ET 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 check 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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