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2 Days Left - Pre-Order at $83 - 16% off Regular Price

2 Days Left - Pre-Order at $83

What we’re reading:

In Thursday’s letter, I wrote:

This is what happened late Thursday night and the first part of the day Friday. Late Thursday we got the failed breakdown of 4874 SPX level noted above and I went long futures. See this daily chart since 1/22?

We tried breaking through and made new YTD highs (high of 4906.69 just above the level above) but sold it off and fell right back into the range. We then chopped.

See how well the levels work?

Now that price is getting tighter & tighter and we get ready to make a big move. Will we breakout above or breakdown below? What significance was today’s failed breakout?

More in the trade plan below.

The 0DTE $SPX 4905 calls ran from a low of $25 to $115 = 360% gain.

I traded these from $40 to $55 for 90% of the position called out in the chat. Then took a bit more off at $80 for 100% gain. Then held the rest hoping for a blast into the close. I also traded the overnight long in futures called out in the chat for nearly 20 points. 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 rallied slow and steady overnight and then even harder after the open. Then we rejected and sold off. This range is choppy and if you overtrade it you will get sliced up. Wait for the big breakout or breakdown. Always trust the levels!

Now we are sitting in AH right on the 4884 key 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.

We printed a higher high and a higher low. As previously discussed, it appeared we were going to try the breakout but we fell right back in range.

Quick volume check:

Lower volume on Friday. Perhaps many participants are awaiting direction!

Monday we appear to be quiet on the news/data front.

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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