October 18, 2023 SPX, SPY, ES Trade Plan
Market Recap
Good morning/day/evening traders. Great rally by the bulls yesterday after a sharp selloff on the heels of the stronger than expected retail sales numbers. With those numbers pre-market we had a quick selloff targeting our second bearish bias idea at 4340.
Right prior to the market open I sent an update in our trading room - aka Substack chat room - that 4340 would be a key level and if we don’t break it I wouldn’t go bearish and instead if it holds would target at least 4355. That’s exactly what we got, but had I still been trading this move I would have seen updated data in Volland to showcase the wide open vanna levels we had basically ripped through which allowed for the +40pt reversal from the lows. Remember vanna levels flip - positive to negative as a strike has been hit.
All-in-all I even stated in yesterday’s trade plan due to pre-market news if you were not already in a put position you wanted to trade a failed breakdown or breakout in order to ensure you weren’t caught on the wrong side of the trade at the open. I promise you once you understand the concepts of failed breakdowns and breakouts - where we zone in on key levels and wait to see how candles close around those levels to then take our trades.
If you haven’t had a chance review my intraday trading rules where I have provided an example and reach out with any questions.
On to the trade plan…
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Dark Matter Trade - Chat Room on Substack
SPX/SPY/ES Intraday Overview (TL;DR)
Today brings us a slew of FED speakers in the afternoon and prior to market open we have building permit numbers coming out.
In today’s trading session I am looking for 4365 as a key critical level along with 4380. These two levels will dictate whether we have a continued bearish or bullish day.
Thus if you are a bull you want to target 4395 above 4380. Above 4395 we then target 4410.
For the bears they want to defend…
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