Tuesday Dec 19 2023 SPY SPX ES Actionable Levels

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In Friday’s letter, I wrote:

This is what happened. We never had to retest the 4699 level and we ran all the way to a high of 4749.52, right at the first target of 4749.

See how well the levels work?

After another move higher and just shy of all-time-highs, what comes next? What key targets are above and what are the must-hold levels to keep new ATH within reach?

More in the trade plan below.

The 0DTE $SPX 4760 calls ran from a low of $17 to $80 = 371% gain.

I traded these from $35 to $75 called out in the chat for 114%. This was my third and final trade. Prior to this I traded 1DTE SPY calls twice. First for an OK profit and the second time for a better gain. 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. The supports held, and as we broke through resistance level one at a time it was clear where we were heading. This managed multiple entries into calls and assisted with my exits. Always trust the levels!

Now we are sitting in AH right on the 4737 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.

Trading Plan

Here is a current check of the daily:

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

A higher high and a higher low. Does the volume support additional upside here?

Quick volume check:

Yikes! Everyone on Christmas break already? This is concerning, and I’ll be watching this extremely closely tomorrow. Without additional volume we’ve already seen the highs.

Tomorrow we have some housing data prior to the open and some Fed member speeches during the session.

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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