SPY Key Levels, Analysis, & Targets So today was just FUN…. I was expecting a rally today and we sure got a face ripper…. No surprises in the fed meeting so the market had a party.
How did I play today? So we opened at 417 so I chose that as my call strike. I added a VWAP to that options chart which gave me a starting price of 3.28, which I cut in half giving me 1.64 so that is what I set my buy order to. It filled around 10:30 and I immediately set my sell order for a 50% profit and one hour later around 11:30 I closed that trade for a 50% profit (1.64——>2.46) X10 contracts. It was a small win (820), but I’m definitely sticking to small trades for now. Yes, the market rallied hard after that and I could have made a lot more, but I decided not to play the fed meeting. And profit is profit. I’m managing to hit that 50% quite regularly using this strategy so I’d rather be consistent then be upset that I didn’t make more.
Now we are at a double resistance level at 429 (red arrow)… and ALSO right at the 200MA on the 30min chart which you can see has been quite a strong resistance, and also the 35EMA on the 4hr chart. If it does break above I can see perhaps a run up to 435-440 (right shoulder of H&S?) and if it gets rejected then a retest of 404 or even a possible attempt to fill that gap below…
I’m taking this market 1 day at a time basically just scalping and day trading on the top contract which, again, I don’t really recommend if you’re still learning… if you’re still learning it’s better to wait for a confirmation of direction or trading much further out to improve your chances…
There you have it… my entire thought process LOL… Hope this makes sense…. I don’t know, the more I stare into this chart the more I’m thinking puts tomorrow…. But let’s see how this opens, there is a little bit of room to the upside so I don’t want to be hasty….
Let me know your thoughts… I truly enjoyed playing the bullish side MTW, but I think It’s time to get back in puts…
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.