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. Continue reading
After many months, today our Stop Loss got hit at 2085, on the latest buying at 2100 done yesterday afternoon or tomorrow morning. So we are down 15 points this month as of 2nd December. In light of the sudden selling pressure today, exiting the long trade at our stop loss was the right thing to do. However, not to worry. We have made our success with careful trading strategy, and we shall recover these 15 points and lot more in the coming days/weeks.
The market is giving us a message that long positions, which took the index to 2100 yesterday were not willing to hold ahead of the US Fed meeting later this month, and many stop losses, including ours, got hit today. The S&P500 index is out of Buy Zone today but it is not in Sell zone yet. The market uptrend is still intact, but it needs caution for next 1-2 days. There is no trade for tomorrow (Thursday, Dec 03, 2015). We shall analyze the market data to arrive at our next trade. Thanks.