Tuesday Dec 5 2023 SPY SPX ES Actionable Levels

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In Friday’s letter, I wrote:

This is exactly what happened. Sunday Futures we rejected right off the 4596 level that was needed for the breakout from Friday. Drifting down all night we finally lost the 4575 must hold from Friday’s letter an hour prior to the open. After a bounce at the open we dropped all the way to SPX 4546 (not quite the 4542) and recovered multiple levels above.

See how well the levels work?

Now that we’ve broken out, can we sustain this rally next week? What are next targets above and what key levels must hold to keep this move alive?

More in the trade plan below.

The 0DTE $SPY 456 puts ran from a low of $49 to $181 = 269% gain.

I traded these from $80 to $118 at best sale for 48% gain. This was my second trade of the day called out in the chat. The first I took a loss as I tried to long as we bounced and reclaimed levels in the AM. That was not a great trade and was stopped out. Luckily, I didn’t panic and kept my emotions in check to look for another entry. This is really the key. Once you let your emotions get the better of you, you should be done. Just pack it up. You will end up making more mistakes.

The 456 puts more than made up for my mistaken call entry. I do wish I would have been able to hold onto them for an even larger run, to at least 1.40. I had a limit sell there and also an OCO stop in place that I kept moving up. I moved that up to 1.18 and only a second or two after the 1.18 transacting it hit my limit sell of 1.40. Oh well, at least I was on the right side of the trade - can’t catch it all! 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 fantastic. They clearly showed where we had support & resistance and I used that resistance as the entry point for puts. Then, when we could not fail any further it clued us in that we were done welling and could head higher. Always trust the levels!

Now we are sitting in AH right under the 4567 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.

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