S&P 500: Stormy Daniels days ahead

7 mars 2018

Short-term trend remains bearish despite the recent bounce. "S&P 500" futures ahead of the Wednesday cash open are pointing lower after Trump stepped up trade threats as White House economic advisor Gary Cohn resigns in protest. This increases the risk of volatility, which could cause another decline of the market.

Short Entry: 2715
Stop loss: 2772
Target: 2600

Risk/Reward 2

This short functions to hedge the long position from 2651 (see related chart below), which remains open until the stop loss at 2663 gets taken out.

7 mars 2018

Transaction en cours

The S&P 500 opened lower on Wednesday at 2.710,18 then moved back up to above 2715 triggering the short entry.

8 mars 2018

Transaction en cours

I've added a second short with a better risk/reward ratio as hedge on Thursday:

Short Entry: 2734
Stop loss: 2753
Target: 2677

Risk/Reward 3

9 mars 2018

Note

S&P 500 futures are trading on Friday ahead of the cash open above 2740. The market is acting far more bullish the last days than I had anticipated. Therefore the two short positions to hedge the long from 2651 are both losing trades so far.

Depending on how the price action is this Friday (very bullish, bullish, mixed neutral, bearish, very bearish) I'm going to either close both short positions or only one of both manually today before the Friday close.

9 mars 2018

Trade fermée manuellement

E-Mini Futures traded as high as 2764.25 today so far. I closed the short hedge from 2715 at 2752 to avoid the worst case that the gap up does not get filled on Friday.

I'm going to close the other short hedge from 2734, too today if the gap up gets filled above 2740-2750.

9 mars 2018

Trade fermée: ordre d’arrêt atteint

Very strong up day. The stop loss was reached. The S&P 500 traded above 2774 on Friday. Now both short hedges were losing trades, while the core long from position from 2651 keeps on gaining. The Nasdaq made a new all-time high today.