Post-CPI Bullish Spike Needs Confirmation from PPI Tomorrow

10 mai 2023

S&P 500 INDEX MODEL TRADING PLANS for WED. 05/10

As we wrote in our published Trading Plans yesterday, "The CPI and the PPI releases this week are likely going to make investors contemplating over the basics of the markets - economy, inflation, interest rates, and, maybe, freshly obsess over potential recession.". The post-CPI market action so far is underwhelming at best - looks like the markets are waiting for a confirmation from the PPI release tomorrow.

Our models are indicating an initial bias towards an inflection point coming soon. Barring any unexpected bullish development showing up on the horizon, chances are that this could be unwinding to the downside - we might see a confirmation in the next few days.

However, if the PPI confirms the market action post-CPI this morning, then we might be starting another bullish leg. We need to wait for the PPI tomorrow before forming any directional bias.

Positional Trading Models: Our positional models are waiting for the PPI release tomorrow to form a positional trading bias. For now, they are in an indeterminate mode and indicate no positional trading plans for the day.

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 WED. 05/10:

For today, our aggressive intraday models indicate going long on a break above 4140, 4131, 4123, 4112, or 4102 with a 9-point trailing stop, and going short on a break below 4128, 4118, 4109, or 4097 with a 9-point trailing stop. 

Models indicate explicit long exits on a break below 4136. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 11:31am 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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