This is an actual email sent to subscribers on August 1, 2016.
Hello Folks, the futures are currently at 2163.
The S&P500 has been facing profit booking, but the upmove can start again
if corporate earnings play out well. The US Fed interest rate hikes are
now not seen become October, so that is a comfort factor for the market.
The base case for S&P500 index is to move higher towards target 2200.
But August has been volatile in recent years, bringing different reasons
every time. So we must be cautious. Downsides can emerge out of nowhere
and in such a case, long unwinding can rapidly take the S&P500 index back
to 2000-2050 levels.
Here is our Trade#1 for Aug 2016
Buy Emini Futures at 2163 for target 2183/2193 with Stop 2150.
Please note: Our Emini Futures Trading Strategy for August is to stay long above 2150 for target 2183/2193. 2150 is our fixed stop for all long positions in August. So we have a fixed stop loss and variable upside targets of 2183 and 2193. We will be very careful in starting long positions below 2150.