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What we’re reading:

In Friday’s letter, I wrote:

This is what happened. Over the holiday weekend, we could not hold 5008 and eventually worked our way down to 4987 which we defended initially. Early morning we had a failed breakdown of this level but ultimately after the open we couldn’t hold on.

Falling all the way down through 4977, then 4960 and eventually defending and rallying back to 4977 before the close.

See how well the levels work?

Now that we’ve had another down day & fallen to the lower end of this range, what are the must hold levels to keep us from a major retracement? And what role and indications does volume play?

More in the trade plan below.

The $SPX 0DTE 4980 calls ran from a low of $90 to $430 = 378% gain.

I traded these (called out late in the chat) from $130 to $330 for 154%. This was after trading the puts I called out from $223 to $242 for 13%. That was it for me, it was a choppy slow day with a few swift moves in both directions. 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 grand. They clearly had the direction sealed when we lost the must hold levels from Friday’s letter. Always trust the levels!

Now we are sitting in AH right on the key 4972 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.

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Trading Plan

Here is a current check of the daily:

This includes all the way back to 6/29 & all overnight action.

Back down near the lows of this range.

Quick volume check:

Increasing volume on the sell has me believing that while we may bounce higher the healthy selling (for the rally) is not over.

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

Tomorrow all eyes are on the FOMC meeting minutes released 2 hours prior to close.

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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