New Trading Signal

S&P 500 Short Signal – October 2, 2024

Entry Point
We’re initiating a short position on the S&P 500 at around 5701.5 points. To enter this trade, consider buying an S&P 500 short ETF. As the market declines, the price of the short ETF will increase. The recommended portfolio allocation for this trade is between 0.25% and 5%, depending on your risk tolerance.

If you’re unable to enter the trade today, you can still take the position over the next few days. However, make sure the S&P 500 doesn’t move above 5777 points or below 5670 points during this period before entering.

Stop Loss
The stop loss for this trade is set at approximately 5777.7 points on the S&P 500. When using a short ETF, place your stop loss just below the lowest point between September 25 and October 1.

It’s essential to sell the entire position if the stop loss is hit. To ensure this, it’s recommended to enter the stop loss directly into your trading app so that it executes automatically without needing to monitor it manually.

Time Horizon
The holding period for this trade can range from a few days to several weeks, depending on market conditions. While the stop loss level is crucial for exiting the trade, there may be other signals to take profit or exit early. If a new signal to take profit or exit is triggered, we will inform you, provided you’re subscribed to at least our Simple Guide subscription. You can find more details on how to subscribe below.

Here’s the trade setup on the S&P 500: The entry point is marked in green, and the stop loss is marked in red.

Trade Example
Here’s an example using a Euro-based 3x short ETF:

• Entry: 17.27€ on October 2
• Stop Loss: Set below the September 26 low, at 16.32€

Disclaimer: This is not financial advice

Please remember, this post is for informational purposes only and should not be considered financial advice. Always consult with a professional financial advisor before making any investment decisions.

Questions?
If you have any questions about this trade setup or need further clarification, don’t hesitate to contact us.

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