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What we’re reading:

In yesterday’s letter, I wrote:

This is what happened. Overnight, after a quick dip below 4998 SPX and then reclaim, we held 4998 and rallied up to 5015. Then during the regular session, we had another failed breakdown of 4998 and ran all the way to 5032.72.

See how well the levels work?

Now that we’ve reclaimed this key level, put Tuesday’s sell off behind us and continued the rally where do we head from here? What is next major target above and key levels below to prevent another sell?

More in the trade plan below.

The $SPX 0DTE 5040 calls ran from a low of $30 to $255 = 750% gain.

I traded these from $75 to $120, then re-entered lower to average $65 and another exit $110. These were called out in the chat. I also traded $SPY 500 calls at the same time and held on a big longer until trailing stopped out. Then I wrapped it up for the day, but just like the prior sessions, the best moves have been later in the day. If I hadn’t already taken trades I probably would have been interested in longing the failed breakdown of 4998 and reclaim of 5003. More in the trade recap below.

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

Levels from the prior letter were great. We dipped below the must hold level overnight and reclaimed. Then we chopped for the morning after hitting first target had another failed breakdown of the must hold level and then ran. Always trust the levels!

Now we are sitting in AH right on the key 5032 support level. What does this all mean and where do we go from here? Read below for my 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.

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Trading Plan

Here is a current check of the daily:

This includes all the way back to 6/29 & all overnight action.

Back near the highs of this range and close to all time highs - that was fast!

Quick volume check:

Less volume, but still more than recent lows.

I am receiving some great questions from beginners. This is helping me develop guides for this group as well as the course. More to come but I’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, I’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

Tomorrow we have a number of reports & data, including PPI before the open and consumer sentiment during the session. We also have some Fed Member speeches.

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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