SPY snaps longest green streak in 2 years. What's next? My plan for Fri Nov 10.
We are on fire! Got another 10 bagger today.
This will be a short one. I worked late into the night building the mobile app version of Edge so I can get you signals and trade plan alerts in real time right to your phone.
Based on the poll the focus of the app will be to get you 3 to 5 high quality plans per week. Each plan should give a 10 to 60 min window for entry before the move happens and get paid (or lose) within 2 to 4 hours.
Price Action Review
The morning action was clean and we got long after the test of the 436 area, planning for a breakout out over 438 to continue to 440. I made this trade plan and both T1 and T2 were met.
I though we were in the clear and going to go higher but I saw some interesting put flow around lunch that had me consider hedging. I like the 4370p for 1.60 to 2. I wasn’t convinced of the drop so didn’t mention it in chat. However I did see action in NVDA after hitting 4382 that had me share I am going short in it. Here was the signal.
After the sudden drop I alerted to members I had to go short, it was the right thing to do and be patient, I’m targeting 4340 for the exit and took SPX 4370p for 3.6 to 4. (nailed the entry after it spiked to $11!). Well we got to 4345 / $25! ($22-$32) was the overall sell target range
Lesson: Lower Highs with Volume break
See how SPY made 2 lower highs compared to the opening high. That was the clue to start getting short. I was biased because I was expecting 440 before a snap came, but I didn’t let that hinder me from going short when the price action dictated it. So the big red selling with VOLUME which is exactly what I said in yesterday blog as the trigger I’m looking for. So I used the peach line as my guide. SPY back tested to it, we triple topped there, got positioned. We got short were patient for the plan and got PAID! Grew one account over 60% and another over 40%!
My Plan for Friday Nov 10
This snap back could be the much needed relief pull back needed and a trap however I have to play the odds, and the odds for me dictate that I need to look for a setup to get short for a day 2 red day.
I’ll be looking for a push into 435 to 435.50 to get short, over 436 and we may squeeze into 437.50 and I will try again short. Over 437.50 and we likely setup for squeeze over 440, and next week toward 442-445. My downside target today is 428-430.
Good luck today!