Tuesday Nov 7 2023 SPY SPX ES Actionable Levels

$SPX takes a breather. But did bulls defend a critical level on $SPY?

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SPY Options
November 06, 2023

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In Friday’s letter, I wrote:

❝

“For Monday, buyers are firmly in control. We could retrace so much of this move and they would still be firmly in control. If we want to continue up without much retracement, then 4348 is the level to watch. If we hold there we can target 4368 (by way of 4358)…

You could try longing a failed breakdown of 4348”

This is precisely what happened. Today’s high was right at the open, testing the 4368 level (high of 4372.21). From there it was a lot of chop with one really great move down to 4347.53 (I traded the short in advance of this) and one great move up after that back to the 4368 level into the close.

See how well the levels work?

After so many great tradable days in both directions, we were due for some chop. Luckily was able to make something of it. Now that we defended the 4348 must-hold level, where do we head from here?

More in the trade plan below.

The 0DTE $SPY 435 puts ran from a low of $38 to $145 = 282% gain.

I traded these from $60 to $130 at best sale for 117%. This was my only trade of the day and called out in the chat. I really didn’t want to trade the short, but had to make a determination on how much we would move and when. It looked like trading the short was going to be the best trade and luckily it worked out even if it was slow for some time! I was able to scale out- even took a piece off at a slight loss (after taking 70% off for profit). It wasn’t taking the entire position to close for a loft, but I wanted to de-risk after it being so slow to move. Now that I know what happened I wished I had held all of it longer! 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 Friday were grand. We didn’t test or breakthrough many, but they did their job just fine. They gave confidence in where we would not breakthrough and where we could find support on the downside. Always trust the levels!

Now we are sitting in AH right on the 4360 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.

Key Notes

This is not financial advice. This helps keep me honest and is a place for my notes. It is for educational & entertainment purposes for all who choose to subscribe. Not all investments are suitable for all investors.

I try to take action on less than 3 moves per day. Most days are chop and there are usually less than 3 great high confidence setups.

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