Tuesday Dec 12 2023 SPY SPX ES Actionable Levels

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In Friday’s letter, I wrote:

This is where we went. We finally reclaimed Friday’s high and broke out into this new zone even further reaching a high of 4623.71, just below the 4625 first target level.

See how well the levels work?

With CPI on the horizon, can bulls defend this breakout that began Friday and continued today? What key levels will let us know we can keep it alive?

More in the trade plan below.

The 0DTE $SPY 461 calls ran from a low of $21 to $118 = 462% gain.

I traded these from $30 to $75 at best sale for 150% gain. This was my second trade of the day called out in the chat. This was after trading puts earlier in the session which was not a losing trade, but was only a 3.3% overall win once you account for all the exits. I entered these calls after we took a nice dip and defended a critical level and ES VWAP. 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. When we defended the key levels and started breaking through resistance it was clear where we were heading. This guided my entry into calls and my exits at resistance. Always trust the levels!

Now we are sitting in AH right under the 4625 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, however we are firmly above the most recent range and we need to defend to remain within it.

Quick volume check:

The high volume continues on this move higher which supports the rally.

All eyes are on CPI tomorrow before the open and then Wednesday is PPI/FOMC.

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.

For tomorrow and CPI, we can have wild swings and I have expanded the range of levels that I have provided as usual given the volatility that it brings.

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