SPX Model Trading Plans for THU. 03/02

The Fed Failing to Scare Inflation Off

This morning's initial jobless claims and productivity numbers show that the Fed is failing to scare off inflation, and the yields continue to rise. However, the increasingly bearish retail traders' positioning points to the potential for an upside spike. Thus, while the trend is downwards, bears need to be extremely nimble as there is a risk of sudden upside spikes due to retail stop runs by the big boys.

Positional Trading Models: Our positional models are indicating to stay on the sidelines 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.

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

Trading Plans for THU. 03/02:

Aggressive Intraday Models: For today, our aggressive intraday models indicate going long on a break above 3970, 3952, or 3923  with a 9-point trailing stop, and going short on a break below 3949, 3939, or 3920 with a 9-point trailing stop. 

Models indicate explicit long exits on a break below 3967, and short exits on a break above 3943. Models also indicate a break-even hard stop once a trade gets into a 4-point profit level. Models indicate taking these signals from 09:31am ET or later.