$SPY Game plan For Tomorrow + Trade Recap (Spy Tomorrow) Day Trading Stocks - Options Trading

Summary

In this trading video, the host reviews the trades executed in the private Discord channel and discusses the strategy for the next day. With a slow market day and no significant alerts, the focus was on the zero DT charts, particularly the 50 SMA rejections and a short trade opportunity at the open. The host emphasizes the importance of waiting for the 50 SMA to level out or curl up before entering trades. They also mention the upcoming PPI and CPI data releases, which could influence market direction, and advise caution due to the choppy market conditions.

Takeaways

• 📈 The speaker discusses trades taken inside a private Discord group and the game plan for the next day.
• 🔍 It was a slow day for trading, with no significant alerts or trades provided due to the market's lack of clear opportunities.
• 📊 The only notable trade mentioned was a short opportunity at the open, near the 50 SMA on the call side, which was rejected.
• 📉 The QQQ contract was highlighted, showing a negative cross at the open, leading to a downward move.
• 💡 The speaker attempted a short trade on the Zero DT chart, which resulted in a break-even outcome.
• 🚫 The speaker emphasized the importance of waiting for the 50 SMA to level out or curl up before entering a trade.
• 🔄 The market was described as choppy, with no clear direction, and the speaker advised caution and smaller trade sizes.
• 📅 The speaker anticipates potential downside movement depending on the PPI and CPI economic indicators.
• ⏳ The speaker is not biased towards a particular direction and plans to focus on 5-minute crosses for trading signals.
• 🛡 The 4-hour 50 SMA is identified as the last line of defense for bears, and its breach could lead to significant market movement.
• 🔗 The speaker encourages viewers to subscribe and join the private Discord for more trading insights and updates.

Q & A

What was the main focus of the video?

The main focus of the video was to discuss the trades taken in the private Discord, the game plan for the following day, and to analyze the market conditions and trading opportunities on a slow day.

What was the only trade mentioned that could have been taken at the open?

The only trade mentioned was a short opportunity on the call side, which opened near the 50 SMA and was rejected, allowing for a short entry.

What contract was used as a reference for the QQQ analysis?

The QQQ contract was used as a reference to analyze the market opening and the subsequent move down.

What was the outcome of the short trade attempt on the Zero DT chart?

The short trade attempt on the Zero DT chart was described as a break-even trade.

Why did the speaker decide to exit the trade early on the put side?

The speaker decided to exit the trade early on the put side because the market broke below the 50 SMA, and they anticipated a further breakdown without waiting for the close.

What was the speaker's approach to trading on the day described in the video?

The speaker's approach was cautious, focusing on the 5-minute crosses and avoiding larger positions due to the choppy market conditions.

What was the speaker's view on the 30-minute contracts for the day?

The speaker viewed the 30-minute contracts as neutral because the market was choppy and did not provide clear direction.

What economic indicators are mentioned that could impact the market in the following days?

PPI (Producer Price Index) and CPI (Consumer Price Index) are mentioned as economic indicators that could impact the market.

What was the speaker's bias going into the next trading day?

The speaker did not have a strong bias going into the next trading day, planning to watch the 5-minute crosses and react to the PPI and CPI data.

What was the speaker's strategy for managing risk in a neutral market?

The speaker's strategy in a neutral market was to protect capital, trade smaller sizes, and focus on the 5-minute crosses for potential opportunities.

How did the speaker describe the importance of the 50 SMA in trading decisions?

The speaker emphasized the importance of the 50 SMA leveling out and starting to curl up as a signal for potential trades, and avoiding trades when the 50 SMA has already been rejected multiple times.

Outlines

00:00

📊 Stock Trading Recap and Strategy

In this video, the host reviews the trades conducted in the private Discord group and outlines the plan for the next day. The day discussed was slow for trading opportunities, with the only notable trade being a short position opened near the 50 SMA at the market open, which was rejected. The host also mentions observing the QQQ contract, which went negative at the open, offering a potential short trade. The video includes a brief analysis of the Zero DT charts, highlighting a break-even short attempt and a discussion on the importance of the 50 SMA's level and curl direction for trade entries. The host emphasizes the need for caution in a neutral market, suggesting smaller trade sizes and a focus on five-minute crosses due to the lack of clear direction from the 30-minute charts.

05:00

🔍 Market Outlook and Defensive Strategy

The second paragraph delves into the market outlook, discussing the neutrality of both call and put options on the 30-minute and hourly charts. The host points out that the 4-hour chart is the last line of defense for bears, with the 50 SMA being critical to hold. The daily chart is noted as neither bullish nor bearish, suggesting a lack of clear trend. The host anticipates potential downside movement based on upcoming PPI and CPI economic data releases and plans to use zero DT contracts as a guide for trading decisions. The video concludes with an invitation for viewers to subscribe and join the private Discord for real-time trade insights and analysis.

Keywords

💡Zero DT charts

Zero DT charts refer to a type of chart used in trading that focuses on the opening price of a security. In the video's context, the speaker mentions that there was only one trade opportunity identified using these charts, which was at the opening near the 50 SMA. This indicates that the speaker is using these charts to identify potential trading opportunities based on the opening price's relationship with certain technical indicators.

💡50 SMA

50 SMA stands for 50-period Simple Moving Average, a technical indicator used in trading to smooth out price data and identify trends. The speaker in the video discusses the importance of the 50 SMA in determining entry and exit points for trades, particularly noting a rejection at the 50 SMA as a potential shorting opportunity.

💡Discord

Discord is a communication platform often used by traders to share real-time information and strategies. In the script, the speaker mentions the private Discord channel, indicating that they share trade alerts and discussions with a community of traders there.

💡QQQ contract

The QQQ contract refers to the Invesco QQQ Trust, a popular exchange-traded fund (ETF) that tracks the NASDAQ-100 index. The speaker uses this as an example to illustrate the market's opening conditions and how they can influence trading decisions.

💡Short

In trading, going 'short' means selling a security with the expectation that its price will fall, allowing the trader to buy it back later at a lower price for a profit. The video script describes a situation where the speaker took a short position after observing a rejection at the 50 SMA.

💡Put side

The 'put side' of trading refers to options contracts that give the holder the right, but not the obligation, to sell a security at a specified price before a certain date. The speaker mentions a cross on the put side towards the end of the day, indicating a potential opportunity to trade based on the movement of the 50 SMA.

💡Break even trade

A break even trade is one where the gains and losses cancel each other out, resulting in no net profit or loss. The speaker describes a trade attempt that ended up being a break even trade, illustrating the day's lack of significant trading opportunities.

💡PPI

PPI stands for Producer Price Index, a measure of the average changes in prices received by domestic producers for their output. The speaker anticipates that the release of PPI data could influence market movement and affect trading strategies.

💡CPI

CPI stands for Consumer Price Index, which measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The speaker mentions that the CPI data release will be a factor to consider in upcoming trading days.

💡4 Hour 50 SMA

The '4 Hour 50 SMA' refers to the 50-period Simple Moving Average calculated over a 4-hour period. The speaker discusses this as a critical level for the bears, indicating that if this level is breached, it could signal a significant market move.

💡Capital protection

Capital protection in trading involves strategies aimed at preserving an investor's initial capital by minimizing risk. The speaker emphasizes the importance of capital protection during periods of market neutrality, suggesting smaller trade sizes and cautious strategies.

Highlights

Introduction to the video discussing trades taken inside the private Discord and the game plan for the next day.

Today's market was described as super slow with no significant alerts issued to the Discord community.

The only trade considered was a short opportunity at the open near the 50 SMA on the call side, which was rejected.

Observation of the QQQ contract showing a negative cross at the open, indicating a potential short setup.

A break-even short trade attempt on the Zero DT chart was mentioned.

Towards the end of the day, a cross on the puts led to a small trade that was exited early to avoid risk.

No addition to the position was made as the price never went above the 10s, keeping the trade size small.

The speaker explains the importance of waiting for the 50 SMA to level out or curl up for a reliable trade setup.

The rejection of the 50 SMA twice suggests caution against taking a third rejection trade on the Zero DT charts.

The speaker did not enter a trade due to the lack of a clear cross and the choppy market conditions.

The speaker's neutral bias going into the next day, with no strong preference for a bullish or bearish move.

The importance of watching the five-minute crosses for potential trades, given the lack of clear direction from the 30-minute chart.

The speaker's strategy to protect capital and size trades smaller in a neutral market to reduce risk.

The potential impact of PPI and CPI news on the market direction in the coming days.

The last line of defense for bears is holding the 4-hour 50 SMA, with the possibility of an explosive move if broken.

The use of zero DT contracts as a guide for trades throughout the day, with a focus on reacting to CPI news.

A call to action for viewers to subscribe, share, and join the private Discord for more trade insights and information.

Transcripts

yo going guys welcome back to the

channel man to this video going to go

the trades we took to inside the private

Discord as well as the game plan going

into tomorrow so today man super slow

day if you guys were in the cord didn't

alert anything um there really just

wasn't anything to give out to you guys

today because if we look on the charts

here um just the zero DT charts in

general um here's the open of the call

side so we're right open this is like

really the only trade in my eyes that um

you could have taken that was provided

today right at open we opened right near

this 5050

SMA um on the call side and we ended up

rejecting so once we started um

rejecting that 50 you could have got in

for a short and also at the time I was

watching the um what was it called the

QQQ contract so if we look at QQQ real

quick

um this is what those look like so right

at open um this is what QQQ was like we

ended up Crossing negative right at open

on these contracts so if we look back

here right at open these went negative

and we got a nice move down um so that

was like the only really setup I saw

today but just in terms of spy there

wasn't um really anything to take so um

I did try a short if we look here it was

pretty much a break even trade U if we

pull up the what was it the put side of

things um

on the Zero DT chart forget what chart

it's on yeah this is on the put side so

towards the end of the day we got this

cross on the puts so when we got this

cross right here this 5050 ended up

pretty much leveling out so at that

point I ended up taking a stab um and

then once this candle was forming we

ended up breaking below it a little bit

and I just hopped out as soon as I saw

it breaking a little I didn't even wait

for the closer just because uh most

likely this was going to break down and

if it did get back above I would have

just re-entered so um yeah I told

Discord I was going to add if we got

back above this 10sa we never got above

the 10s so it never added to the

position so I mean it kept it like

really small as like size compared to um

usual just because of how choppy it was

today but we never got my ad to it so um

I mean the 10o loss is pretty much

nothing um but yeah the those are the

zero DT chars for the day I mean if you

wanted to you could have played these

little rejections at the 50 SMA but

personally was just waiting for a cross

to happen um if you want to take these

rejections you can obviously they could

be a little bit riskier like you would

have got stopped out on this one right

here cuz we closed above um and then

also came up to

it again and he would have been stopped

um but I mean obviously I wouldn't take

like the the 50 test after we already

reject it once twice and then the third

time I definitely would not be taking a

reject on the Zero DT charts um and then

the call side of things this is what

these looked like um so at open we got

that rejection at 50 we came up um again

you would have been stopped out of this

rejection on the 50 on the call side uh

the reason why I never entered this

cross right here is because we never got

the 50 SMA a curl up if you guys trade

the system you guys know that I always

say you got to wait for this 50 SMA to

level out and start to curl up or level

out or curl up one one or the other and

how I judge that is based off of these

like dotted lines right here as you can

see that's when I could tell it's

perfectly level like in that pull cross

it was pretty level like I mean I gave

it a shot it was worth a shot because we

didn't get a cross all day so um we

ended up you know stopping out but I

mean it was worth a shot in my my

opinion and yeah we end up hitting the

50 right here if you wanted it to you

could have taken it but once again I was

just waiting for the cross um just

because we didn't get anything all day

and that was what I was looking for

didn't get it so there was no uh trade

to take didn't call anything out um

besides that cross on put so I'm going

into tomorrow I mean I I don't really

have a bias um if you look on the

contracts on the 540 calls the 30 minute

um were neutral on both of the contracts

in my eyes because look like look at the

chop today this is how you know it was

bad that's why I didn't take the 30

minute into consideration much just

because of how choppy we were and also

with this hourly 50 SMA right

here um I mean I would favor the

downside just because this just doesn't

give us much room to go to the upside so

I'm going into the rest of the week I

would expect you know maybe some

downside it just depends on PPI tomorrow

once again we have PPI and then CPI so I

mean there's no really like I don't have

a strong bias either side I'm just going

into each day just watching the five-

minute crosses and if we do like get a

pop up into this hourly then maybe I

take a rejection play off of there but

for now I'm just focusing on the 5

minute crosses as that's the best thing

to do because I mean 30 minutes giving

no clear Direction um as you can see

it's just a bit choppy action this is

where um like you want to protect your

Capital protect you know the trades you

taking you know size less maybe if

you're taking things just because um you

know the like when the market is neutral

that's where you want to be you know

like risking less like when we're

trending that's when it's way easier to

capitalize on big moves and like hold

for longer when we're neutral a little

bit harder to do that so um I mean

that's the call side of things if you

look at the puts um I mean we're kind of

in the like not much of a different spot

than we were um yesterday but where the

puts at red right yeah okay so 30 minute

once again we're neutral on the puts as

well so um

yeah no clear Trend if we go to the

hourly we were negative on those two

hours cross negative today um and then

the 4 Hour is the last line pretty much

defense um that we got going here so um

daily also I mean the Daily's not really

flat or pointing up so I mean I wouldn't

really take that into consideration but

if we did get like a downside move off

of PPI and CPI then this would end up

curling the 50 SMA in these contracts

would explode so um yeah it's pretty

much the last line of defense for the

Bears they would they got to hold this

4our 50 SMA it's possible that they do

I've seen it happen but um yeah we're

just going to be you know using the zero

DT contracts as our guide throughout the

day tomorrow and Wednesday we're going

to see how CPI reacts and see what the

charts look like after uh the news comes

out so yeah it's pretty much all I got

if you guys enjoyed drop drop a sub I

share all my like all the information

throughout the day on the trades that

I'm looking for and what to look for um

in the private Discord down below so if

you want to join up link to that is in

the description but yeah hope you guys

enjoyed Drop Like drop a sub and uh I'm

out peace