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In yesterday’s letter, we wrote:

This is what happened. The levels played out beautifully as we experienced a quick dip and defense at 5930 overnight, which set the stage for a rally straight up to 5975 by the open. After some chop, we continued higher, pushing through the 5989 and 6001 targets, and nearly hitting our final target of 6023.

See how well the levels work?

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However, the session concluded with significant chop and we were unable to hold the 6000 level into the close. What does next week bring and where must we hold to continue this course?

More in the trade plan below.

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

The levels played out great today, as the dip & defense directly on 5930 led to an 85 point rally. The market’s resilience and ability to defend the critical support level indicated a bullish sentiment. Always trust the levels.

Now we are sitting in AH right on the key 5993 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.

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.

Trading Plan

Today brought a nice 1% pop on lower volume, which got us very close to the year-to-date highs and positioned us within striking distance of all-time highs.

As we head into the weekend, it's important to note that there will be no trading on Monday in honor of Martin Luther King Jr. Day. Additionally, with Trump's inauguration approaching, be aware of potential executive orders and actions that may significantly impact Tuesday's session.

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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