Thursday Dec 14 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

This is exactly what took place. We defended 4644 twice and the second time was right before FOMC. This sent us on a rocket all the way to a high of 4709.69 literally JUST below the 4710 level mentioned above.

See how well the levels work?

How much further can we run before first rest and what are the key levels above and below that we need to be on watch?

More in the trade plan below.

The 0DTE $SPX 4730 calls ran from a low of $5 to $90 = 1700% gain.

I traded these from $10 to $35 for 250% gain. This was my second trade of the day after taking a pretty poor entry into SPY calls. Honestly this made up for my mistake but I should have traded the plan. We clearly defended 4644 twice and I should have been entering there. Instead I let myself get chopped up. 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 magnificent. We held exactly where we had to overnight and all day and when FOMC data dropped we blasted all the way to the target level from yesterday’s letter. Always trust the levels!

Now we are sitting in AH right under the 4724 key resistance 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.

Trading Plan

Here is a current check of the daily:

This includes all the way back to 3/30 & all overnight action.

We just had a contract roll so this breakout is not as grand as it may appear. Today was a major extension of this breakout. We will need to let price find its way after this.

Quick volume check:

Actually expected higher volume but it is higher than much of the last 9 or so sessions.

Tomorrow we have unemployment and retail sales prior to the open.

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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