Premarket Gap Up/Range Break after a week of consolidation in SPY and my plan for Wed Nov 29.
We had a few solid trades yesterday taking advantage of the range bound action. I had my first credit sell loss yesterday, but I knew it was risky and took it the trade out of zeal and not patience. Got stopped out quickly,, however the second credit sell where I indicated it met the criteria for my “regular” sell trade worked out perfectly.
The first short attempt was where I thought we failed and double topped at the end of the first hour where minutes later we got the rip from Waller’s comments. I was able to quickly go long on SPX 4570c from 1.5 to 4.50 getting lucky on nailing the top on the sells.
Once we broke 456, I noticed it looked like a double top on the hourly chart and loved the risk/reward so did a credit sell again which worked out perfectly wheren we flushed out after lunch.
SPY essentially based for the next 3 hours holding that peach line/establishing.a failed breakdown reversal leading to this morning’s gap up.
Given the basing action into the close and hold of 475, I suggested taking NVDA calls for a swing overnight. These should at least double or triple by the open/end of day.
Yesterday was also amazing for COIN 0.00%↑ and TSLA 0.00%↑ long trades with plans to sell the balance this morning. Remember I like to be systematic. And one of my rules is to sell 50 to 100% on gap ups in my favor within first 15 minutes.
Game Plan for Wed Nov 29
Ok, so SPY is seriously gapping up. I can’t chase it long. If we get a back test on 456, I will go long, we break 454/453, I will use that as my signal to load up short. Until then at the moment, market is in full blown BTFD mode.
Given the gap up, I will focus on hunting for the exhaustion on the rally for a short scalp, and then flipping long once support is established. In theory, SPY is now headed for 460s by Friday.
July high was 459.44.
If NVDA can clear 488, it has a shot at 500+ into Friday.
COIN I’m looking to short around 130-131 and exit balance of calls.
TSLA has cyber truck event tomorrow, which may or may not be sell the news or a catalyst to carry TSLA into 270s. 246.70 was the Nov 15 high and we are gapping above it. I’d like to reload long on a back test there.
Reminder. Be systematic, be process driven and take fewer trades. Wait for A+ trade setups. If you need help learning to be process driven or learning the setups I focus on, reach out to me on X @spectre_trades