Wednesday Dec 20 2023 SPY SPX ES Actionable Levels

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In yesterday’s letter, I wrote:

This is what happened. We never had to test/defend the 4723 as we reclaimed 4740 and was off to the races. First making quick work of the 4750 out of the open and then marching all the way to a high of 4768 just above the 4766 target level.

See how well the levels work?

Another move up and another step closer to all time highs, where do we go from here? What key targets above and must hold levels below point the way?

More in the trade plan below.

The 0DTE $SPX 4775 calls ran from a low of $36 to $160 = 344% gain.

I traded these from $80 to $130 called out in the chat for 63%. This was my only trade of the day. 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. The critical supports held and we reclaimed the 4740 from the letter overnight. When we broke above first target at the open it was clear where we were headed. Always trust the levels!

Now we are sitting in AH right on the 4762 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:

Again - seems everyone is already out for the break. We may find ourselves continue to be able to trickle up on low volume. Be aware, these conditions are the ones that can reverse violently as there are fewer and fewer buyers at these prices and once selling starts it can build momentum fast. Pay attention to volume.

Tomorrow we have consumer confidence, home sales data and fed member speech during the trading day.

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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