Inflation, Yields, and FOMC in Focus This Week

S&P 500 INDEX MODEL TRADING PLANS for MON. 06/12

The precarious rally of the last month has been baffling many with its lack of the breadth - the rally concentrated in just a handful of big-tech names. In the last trading plan - published on Thursday, 06/08 - we wrote: "If the rally does not dissipate this week, then it could be indicative of yet another leg up that could obliterate the shorts". The rally did NOT dissipate last week, but rather accelerated.

With heavy economic calendar this week culminating in the FOMC rate decision on Wednesday, the focus will be back to the inflation and interest rates (potentially being confirmed as not a concern anymore, IF the FOMC pauses rate hikes as widely expected). Any concerns of potential recession seem to be not on the market radar for now. As can be expected, our models are flashing heightened probabilities for spikes in both directions, with no clear directional bias yet.

As we first stated to start this week, if you are a bull, it may be prudent to take some profits off the table; if you are a bear, you might want to wait for confirmation of downside bias.

Positional Trading Models: Our positional models indicate no trading plans for today, as they are in an indeterminate state.

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 MON. 06/12:

For today, our aggressive intraday models indicate going long on a break above 4323, 4305, or 4275 with a 9-point trailing stop, and going short on a break below 4320, 4302, 4297, 4290, or 4270 with a 9-point trailing stop. 

Models indicate explicit short exits on a break above 4314, 4299, or 4293. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 10:46am 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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