Results of our models' trading plans, published in the morning, are now available. Anyone can verify/cross-check the triggering of these trades from any source that provides charts. THE GIST: Medium-Frequency Models: Lead to -25.6 index points in losses on two long trades and close out of the carried short trade. Aggressive, Intraday Models: Lead to +1.9...
The Bear Case is Back to Rest, for Now With China's softening (?) stand - or, the spin of it - has put the last few days of growing bear case to rest, at least for now. Until the earnings come into focus, there does not appear to be any fodder in sight to feed the bears (which may change in a whiff, of course). The 2926 level our models have been monitoring is...
China's "Calm Attitude" To Calm the Markets? China's words about it willing to resolve the trade dispute (war?) with a "calm attitude" seem to be settling the nerves of the markets this morning. Is it sustainable or just a tweet away from blowing up? We have to wait and see. Read below for our models' trading plans for the day. tradersai.com NOTES - HOW TO...
Results of our models' trading plans, published in the morning, are now available. Anyone can verify/cross-check the triggering of these trades from any source that provides charts. THE GIST: Medium-Frequency Models: No trades were triggered Aggressive, Intraday Models: Lead to +18.2 index points in gains on three longs and three shorts. THE DETAILS: For...
Do Not Rush Into Position Trading The geopolitical and economic situations and potential signals (yield curve, anyone?) are getting increasingly slippery and there could be a lot of false signals in these markets. Staying out of the markets can be much better than getting trapped on the wrong side. Agile and nimble trading is the continued theme that our models...
Results of our models' trading plans, published in the morning, are now available. Anyone can verify/cross-check the triggering of these trades from any source that provides charts. THE GIST: The index reflected the confusion, the flip-flop, and the uncertainty surrounding the contradictory stands/statements coming from the administration about the tradewar,...
When You Can Not See the Road Ahead The whipsaw that bears got caught in on Friday's melt down, and the dismay the bulls felt with the ease of the free fall...is likely leaving both sides feeling trapped with the spike up from the 2810.25 lows. If you got in on the right side and/or looking at just entering into the markets afresh, have a clear and well defined...
Horror Stories From the G7 and/or Jackson Hole Over the Weekend? Investors seem to be fretting over the potential for market horrors to unfold over the weekend involving unexpected headlines from the G7 summit or the Jackson Hole. Add to this the Friday options expiration plays and we have got a recipe for chaotic and inexplicable moves today, especially during...
Results of our models' trading plans, published in the morning, are now available. Anyone can verify/cross-check the triggering of these trades from any source that provides charts. THE GIST: The index essentially closed unchanged (-1.48, -0.05%), after oscillating within a range of 26.43 points intraday. Our medium-frequency models didn't trigger any trades -...
FOMC Meeting Minutes to Offer Help for Market Bulls? The early exuberance around retail earnings notwithstanding, FOMC meeting minutes release at 2:00pm EST is going to set the tone for the market's mood for the rest of the week until Friday. Plummeting bond yields and the underlying recession concerns, or the skyrocketing retail earnings and the strong consumer...
Results of our models' trading plans, published in the morning, are now available. Anyone can verify/cross-check the triggering of these trades from any source that provides charts. THE GIST: Medium-Frequency Models: Open long from Thursday, 08/15 (with entry point at 2835) got closed with +84.01 index points in gains. No new trades opened today. ...
Not Done Yet! The roller coaster ride of the last few weeks does not seem to end any time soon, as neither the bulls nor the bears have any advantage here as of now. Hence, investors need to be nimbler and more agile than usual if want to trade in these markets. Or, have deep pockets and be able to sit tight when the markets go against your positions if you have...
Results of our models' trading plans, published in the morning, are now available. Anyone can verify/cross-check the triggering of these trades from any source that provides charts. THE GIST: Medium-Frequency Models: Open long from Thursday, 08/15 (with entry point at 2835) survived the day's session, and is being carried into Tuesday's session (or, overnight...
It's a Dogfight Out There! With all the volatility witnessed in the markets last couple of weeks, you can probably relate to the dogfight in the image above - that is being waged between the bulls and the bears. As we explicitly took a stand of, there seems to be no particular side exerting or enjoying any dominance, yet. In such directionless markets, typically...
Yield Curve and Options Expiration - to Exasperate Frustrated Investors/Traders Traditional investors and traders in this market would be frustrated with continued influence of exogenous factors seemingly driving the financial markets wild. Yes, the Finance 101 course you took or even the Efficient Markets Hypothesis your professor (and, most everyone in the...
The Doublespeak from China and our Politicians Driving the Markets Yo-Yo The naive and clueless policy-by-tweet politicians (not "leaders" - we seem to have no leadership anywhere anymore at this moment) driving our economic governance (or, lack thereof), and the cunning opponent's deeply strategic moves defining the trade war, investors are being left dazed and...
Results of our models' trading plans, published in the morning, are now available. Anyone can verify/cross-check the triggering of these trades from any source that provides charts. THE GIST: On this highly volatile day with bloodshed on the markets, our models have performed consistently and returned positive returns on the trading plans. Medium-Frequency...
Yield Curve - Economy at the Crossroads The inversion of the yield curve (2-year treasuries yielding more than the 10-year treasuries) is flashing a sign of potential recession. Whether it is a self fulfilling prophecy or an impending economic indicator, the financial markets are going to go through a lot of volatility based on this signal, and the last few days...