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In yesterday's letter, we wrote:

This is what happened. The levels we monitored performed exceptionally well today. After holding the key 6861 level overnight, the market rallied nicely, pushing through 6876. Then, after a data and pre-opening dip below 6876 we defended and ran, eventually reaching a high of 6910.88, just shy of our 6914 target. $SPY ( ▲ 0.35% )  $SPX ( ▲ 0.32% )  $ES_F ( 0.0% )  

See how well the levels work?

Last Time the Market Was This Expensive, Investors Waited 14 Years to Break Even

In 1999, the S&P 500 peaked. Then it took 14 years to gradually recover by 2013.

Today? Goldman Sachs sounds crazy forecasting 3% returns for 2024 to 2034.

But we’re currently seeing the highest price for the S&P 500 compared to earnings since the dot-com boom.

So, maybe that’s why they’re not alone; Vanguard projects about 5%.

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_{*Investing involves risk. Past performance is not indicative of future returns. Important Reg A disclosures: masterworks.com/cd.}

Now, as we celebrate the holiday season, the question is, can this momentum continue? Which levels will serve as the next pivotal points for our trades?

More in the trade plan below.

Below, we’ll cover the actionable levels, how we played them today and what they mean for the next session.

The market’s ability to defend 6861 was a clear bullish signal, prompting us to look for long entries. The dip below 6876 was quickly reclaimed, leading to a strong push upwards. Always trust the levels.

Now we are sitting in AH right on the key 6905 support level. What does this mean and where do we go from here? Read below for our trade plan which includes actionable support & resistance levels, outlook for the next session and today’s trade recap.

Learn the system to make 1-3 low risk, high reward trades per day using SPY/SPX options.

If you are enjoying this letter, consider sharing with a friend! We even have a referral program where you can earn free subscription time for referring others that sign up for a paid subscription.

Don’t miss the Topic Directory - Getting lots of questions that are answered in here.

There seems to be some confusion as to the premium subscription and the discord chat. If you are premium and you do not have access to the “Premium Members Only” channels including “members-only” please authenticate yourself in the “bot-request-premium” chat. Or send me a DM in the discord!

Also - if you missed it - join our chat during market hours for premium subscribers. We are now leveraging discord for this. Link is at the very bottom of premium content: Trading Plan section below.

Reddit’s Top Stocks Beat the S&P by 40%

Buffett-era investing was all about company performance. The new era is about investor behavior.

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_{Past performance does not guarantee future results. Investing involves risk including possible loss of principal.}

Trading Plan

Today saw a solid 1/2% move higher, albeit on low holiday volume.

As we look ahead, tomorrow marks a 1/2 day session for Christmas Eve, with markets closed on Christmas Day. Expect low volume again, along with unemployment data released prior to the open, which could influence market activity.

We are receiving some great questions from beginners. This is helping us develop guides for this group as well as the course. More to come but we’ve created a separate channel in the discord just so you can not be shy about bringing those questions to the group. No question is dumb, we grow stronger together!

In fact, we’ve created this single resource as a guide. It is a living document and we will continue updating it. You must be logged into the site to read it:

https://letter.spyoptionsactionablelevels.com/p/strategy-guide-the-basics

As readers know trading after a massive move in either direction is risky.

Trying to predict when trend will break is a fool’s game because the trend can be stronger than you ever realize.

Going with the trend is hard because it has already run so far (or dropped) and move may be close to over.

All you can do is pick your entries carefully and with proper position sizing. Trading out 1-3 DTE or further also helps soften the blow.

Yes it will decrease the amount of profit but will greatly help keep you in a trade long enough to see return.

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