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What we’re reading:

In yesterday’s letter, I wrote:

This is where we we went. Not exact by any means but the low of the day was SPX 4934.88, just below the 4938 (and commented maybe a bit lower) above and the high of the day was 4957.77, a bit under the 4963 above.

If only I had fully taken my advice! More on that to come…

See how well the levels work?

Now that we’ve chopped around but defended a key level all day long, where do we go from here? How much longer could we fill out this range and which levels below and targets above point the way?

More in the trade plan below.

The $SPX 0DTE 4960 calls ran from a low of $80 to $175 = 199% gain.

I really messed up on these after having a beautiful premarket futures trade called out in the chat. I entered these when I thought we were going to breakout of vwap and move higher. I entered at 1.60 and after having the opportunity to close some for profit I didn’t and we immediately retraced. I scalped some from .90 to 1.05 and even held more from .90. Then scaled out between 1.25 and 1.45-1.60. I hated that I ended the day this way after longing ES from 4959 to 4970 at best sale. 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 fine. It was chop, we bounced around, just when it looked like we were going to reclaim a level we rejected and dipped lower. Every time it looked like we may lost a level we defended and moved back higher. Should have stayed out. Always trust the levels!

Now we are sitting in AH right on the 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.

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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.

We put in another inside day with a higher low and lower high. Continue filling out the range - that’s the choppy consolidation from today!

Quick volume check:

Not distribution yet - just low volume chop. Means the trend up is very much alive.

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 we have a busier day in terms of data and events. 3 Fed Member speeches along with bond auction and other reports.

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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