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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.

Reminder - I will never direct message you and ask you to trade with me or deposit money into an account. Even if it looks like me it is a scam. I wish I had ways to prevent those on social networks impersonating me. All I have is this letter which the premium subscription-only through beehiiv, opens up the discord.

In yesterday’s letter, I wrote:

This is what happened. After hours yesterday and overnight we slowly dried down to 5547 where we defended with force and bounced up to 5575. After a brief retest at 5561 we rallied up to a high of 5585 and the move played out. Then we chopped more and finally lost 5561 to touch near 5547 (low of 5550) by the close.

See how well the levels work?

Now, after losing more ground in after hours and have printed a red doji on the daily where do we go from here? Was yesterday’s relief rally a one time move before we drop hard? Where must we hold now and what levels above keep us out of a multi-session sell off?

More in the trade plan below.

The $SPX 0DTE 5610 calls ran from a low of $30 to $170 for 467% gain.

I traded these from $65 to $165 in the chat. I let the rest get stopped out for profit and then called it a day. I really thought we would continue up and I could ride those to $500-$1000. Not the case but I was positioned for it! 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.

The open was very bullish to me, the reclaim of the 5561 level and defense there all day long. We didn’t lose it until the very end of the day. Always trust the levels!

Now we are sitting in AH right above the key 5531 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.

Trading Plan

Here is a current check of the daily:

This includes all the way back to 1/5 & all overnight action.

A doji sell candle. Buyers must step in fast (especially now with the move down after hours) to prevent us from a significant sell.

Quick volume check:

Even weaker volume than yesterday’s rally.

Tomorrow we have PMI right after the open and new home sales. Then multiple FOMC members speak after the close with Biden’s address in the evening.

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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