AMD Rockets. Did SPY surprise you by the gap up and go yesterday? Don't be... and trade plan for Friday Dec 8.

Markets await jobs data and key economic data next week

In my previous post I asked, if the close on Wednesday was a bear trap. Yes it is a bearish engulfing, but markets are acting strange during this week of consolidation.

I made a plan to go short, if we rejected 465.50, instead we gapped up and over and 465.50 turned into support. What that translate into? Another short squeeze.

This time we actually had some basing action over 457.30 which opened the door for a run at 459+ again.

With that perspective in mind… I shared this.

5 minutes later. SPY tanked and went halfway between vwap and that 456 level for a scoop.

I was hawking for a faker dip to get long and we got it around 11am. And scooped 4585c for 1.50 target a $3-5 exit. for roughly 100-200% gains.

Most of the rest of the day was a pain and range bound. We got a spike toward 459 which offered a short opportunity. but even that was less than a $1 move.

AMD Rockets

The potential revenue got investors excited.

The trade plan on this was simple. look for a gap up reversal, unless market hold/rallies. And in our case both.

Let’s break down how to trade the action using my levels.

Plan was go short at 123. We got a single level move to 121 and need to lock some in. and lower stops to vwap. If it is going to dump, it shouldnt come back.

Remember if market held, I would consider long. I made a plan that if 121.50 holds/crossed vwap I will take 123c and seeing SPY push over 457s made me bullish.

Edge caught this dip buy someone took on vwap reclaim and boy did they get paid! If held till high over $1.2m in profits. Fingers crossed that they get 130+ today.

In premarket today it hit 130.

Gameplan for Friday Dec 8.

Let price action play out after jobs numbers and then look for trend to form quickly 15 minutes after the open. I’m expecting 8:30am to trigger choppy action.

We could breakout today or we could dump right back into support while market awaits economic data next week.

If there is a surprise, then I’ll adjust accordingly.

The one thing I will be looking for is a possible gap up reversal trade setup if it rallies and trend fails after first hour.

If you checkout the volume profile, you can see significant build in 455s. That is the key area to watch and why 454/453 break will be significant if and when it comes. In the meantime, the story, I see being told is, lets accumulate for 460+ breakout.

If we get a move and hold over 459 today, I would expect a push into 460.50+

I’ll be watching for a scalp on AMD on cheapie contracts.

NVDA 0.00%↑ Incredible recovery after bearish candle. Right back toward 467. if 467 can turn into support and market rallies this could begin a leg higher. I like 480c for next week on dips. or 490c for 12/22.

Good luck today and remember to stay process centric. Look for key levels to be tested, use failed breakdown/breakouts to your advantage for entry. Remember few trades = more profits! A+ trade setups only.