I issued a buy signal a short time ago to the Founders Group at S&P Futures 3833.50. I had targeted a retest of the Weekly Expected Move low after the first thrust from the bottom for an entry once the Navigator algo signal kicked in.
We should get at least a few days off this signal – hopefully, more. I will communicate a new stop later today, but for now, set the stop at 3826.50 on the futures contract. You can also use April 16, 2021, 350 calls on the SPY. If so, a close below 382.25 would operate as your mental stop.
As always, do your own homework as I am wrong periodically. Also, while this morning downdraft has worked off some froth, this remains a dangerous market, overvalued by historical standards. Entering intraday rather than confirming the buy signal at the close is a bit riskier – as the market could be fooling us and reverse through our stops prior to the close. That is the tradeoff for getting in a bit sooner and at lower prices.
I always like to let you know when the Algo signals kick in for the Founders Group. But we trade futures and are at our screens – so we can react to intraday change. It is perfectly acceptable to enter more towards today’s close, just to make sure the market holds above the aforementioned stop levels.
A.F. Thornton