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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.

In Friday’s letter, I wrote:

This is what happened. The market opened strong and we quickly defended the 5545 level, which led us to an explosive rally. Once we broke through the 5569 level, the pace picked up significantly, culminating in a high of 5608.3—just 30 pennies above the 5608 target listed in Friday’s letter. It was a remarkable run, and those who were able to capitalize on the dip and defense at 5545 certainly benefited from it.

See how well the levels work?

Now that we have printed a massive daily candle and covered a substantial range from 5119 on August 5th to today’s 5608, the question arises: where do we head from here? What does the low volume indicate about the sustainability of this rally?

More in the trade plan below.

I didn't trade today as I missed what I felt was my entry point while away from my desk, and instead, I watched the market run higher without me. It’s always tough to sit on the sidelines, but sometimes patience is key.

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

The levels were awesome. We defended 5545 and then it was off to the races. Always trust the levels!

Now we are sitting in AH right above the key 5604 support level. What does this 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.

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.

Trading Plan

Here is a current check of the daily:

This includes all the way back to 1/5 & all overnight action.

Friday I wrote, “With today’s action, we are back at the very top of the range established in late July, positioning ourselves for a potential breakout after some consolidation.” That is what we saw today. We printed a massive daily candle and ran 489 points from 5119 on August 5th to 5608 today.

Quick volume check:

We are now at a critical juncture. The market has shown it can defend levels effectively, but with incredibly low volume, it raises the question of what will happen when the volume returns.

We have a quiet day ahead tomorrow with only two FOMC member speeches scheduled during the trading session. Market participants should remain vigilant and ready to react to any developments.

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

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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