100% $SPY Options Trade Off The 200SMA | LIVE TRADING

So this morning in the pre-market

live

stream we talked about how the S P 500 had broken the 200 SMA on the daily chart and also broke through a previous double top rejection point. Now we talk about how when we get a big move like we did. Yesterday in the market we should always anticipate some kind of pullback, some kind of retest of the previous breakout point on the S P 500, it was the 200 SMA and the 40 50 level, which were next to each other this morning as a market. We started

trading

, so on the pre-market

live

stream we said that we would love to see a pullback down to the 40 50 level, the 200 SMA and then look to go long from that level looking for a bounce off of that 200 SMA.

So today we had that pullback to that 200 SMA that 40 50 level and when I started to see this happen I had to put some risk on the table, this was my game plan going into the day and I had to stick to that plan and I captured this

trade

live to share with you today before moving on to today's analysis of this

trade

and the live recording. I want to quickly play a clip from this morning's pre-market livestream to share with you what we talked about in For those livestreams, you can go ahead and skip this part of the video if you don't want to watch it, but I think it's valuable to watch what it looked like before if you missed the live stream so you can see what this analysis was like. down in the previous market and how I built my plan around this 30 minute

trading

chart you can see we are right in that downtrend what I am looking for more than anything here guys I think the most important thing is not even the downtrend is to retest the 200 SMA, which in my opinion is the most important thing here.

If you get a pullback, which you should, you should get a pullback in this market. If you get a pullback in this market, which you should. There is no doubt that you should always get pullbacks after a move like this, so if you get a pullback, which I expect to happen, you need to see if we hold 40 50 here, this is the important thing: you have the 200 SMA at 40 50 . and you have a previous double top at 40 50. this area here is more important than anything else because if we get a pullback here and we don't hold it well, if we get a pullback and we don't hold it and we start turning the 200 into a rejection again, so that's your first sign that we might start to go down that leg, that's the telltale sign if we start to see this and we get that 200 breakout and then we get that 200 rejection and we start to see a step of weakness in this market, that's your sign that things could start to weaken if we get a pullback towards the 200 level and the 40 50 level, which this could also lead to very aggressive bears, right?

They are getting irrationally aggressive here on the downside to enter new shorts to hold the previous highs and then another squeeze to the upside, right. I won't go short until we break this 200 SMA to the downside, that would be my here's how I would do it. Look at this market, a strong move in the market requires correct pullbacks, it requires these levels to act as support, it requires you to know the stair climb levels, so that's what I would be on the lookout for today, okay guys, now that you saw that pre-market clip. and something we talked about in the previous market, let's go ahead and review what this looks like now and how I built this trade, how I set it up and then of course we'll do the live recording so you can see my executions on that trade, so today you know we had that big push up on everything, well the NASDAQ, everything pushed up after we got Jerome Powell yesterday, we broke that 200 SMA, the 200 SMA. it's the red line that appears on your screen here we went ahead and broke that is a very important breakout for the market it's something we haven't seen at all this year so we got that breakout of the 200 SMA not only did we break this previous double top at the is right around this 40 50 level so we had a pre-rejection here a pre-rejection here we broke it along with the 200 SMA and we went ahead and stalled around this long-term downtrend so of course after today we are still under that long term downtrend, if I go to the daily chart you can see that we are still under that long term downtrend, that is something we will definitely have to watch in the next few days, but for trading today if we go back to the hourly chart we can see we got that breakout now if you look at my channel if you know anything about me you know when we get a breakout of key levels.

I want to see previous rejection turn into support. I want to see previous rejection turn into support. I see that breakup and that new test and I want to see if I can go beyond the new test of a previous rejection, so we had that previous rejection here, we broke it and this morning, as I talked about on the live stream, I want to see In the retest, I want to see the pullback and I want to see if buyers weigh in on that previous rejection. The point makes it a support. So if I break this down on the one minute chart that you can see this morning, we went up but ultimately rejected it. that long-term bearish trend and now we push lower.

I didn't catch this bearish trade which I probably should have. I think I was just more focused on what's going to happen at that 200 SMA. I missed this quick move down and live on live trading on Discord. I was saying be careful, continue to short this move, we have to be aware of that 200 SMA below, we have to be aware of that possible breakout and retest to the upside, we had a rejection earlier. At the 40 50 point that we break through, we have the 200 SMA at 40 50, which we are still trading above, so we can't be too bullish on the downside until we get some confirmation that we are actually going to break below the 200 SMA.

So after seeing this quick move lower, I wasn't that interested. I didn't feel like my risk reward was there. I could have caught it. I missed it. What interested me at this moment was, come on? to hold this 40 50 area, we're going to hold the 200 SMA which is right here on your screen so you can see we went down to this level, we cut off the inverse head and shoulder a little bit and I started going long and I started accumulating some Buy

options

here looking for an upward movement. Now in this scenario I start climbing because I'm not trying to time the bottom exactly to the right.

I have a general idea of ​​where I think the bottom might end up. I have a general idea of ​​where that demand is coming from around that 40 50 around that 200 SMA, so you'll see in my live recording and my entries and exits that I was scaling this trade to see if I could catch that turn of that 200. SMA and you can see here that we eventually consolidated at that 200 SMA and started getting that momentum where I started scaling on this momentum right here, I was widening here when we started getting the momentum, one of my horizontal scales was here, which was the v-wop that you can see on your screen.

The gray line is the v-wop on one of my last scallops, it was right here when we started getting closer and I don't like trying. trade via v-wop, as you can see the es had problems there almost all day, it was floating around this v-wop line, so I thought okay, let me go ahead and start climbing as it we are approaching that v-wop level and you will see all this right on the live recording, so today I focused on that 200 SMA, this was my game plan from the pre-market live stream to the trade live, let's see what happens when we get that recoil.

I went back to 2200 and we saw that we started to consolidate around that level. I started getting some buy contracts at this level to pull back from that level. Another thing I really liked about this trade was that there was a very clear stop loss. correct level I knew exactly where I was going to stop if I was wrong no questions about it no emotions if we break the 200 SMA I am out of this trade regardless of what happens so you can see I started to climb you will see On the recording in live I started climbing with my stop loss just below this 40 50 level at a different level where I have an emotionless game plan, take your loss at that level if we drop below it and if we get a move. in my favor, to the upside, extend as you get that momentum, so with that analysis out of the way, an understanding of what you were looking for in this trade and kind of a game plan behind it, let's go ahead and execute that live recording so Guys can see my inputs, my outputs, and some of my thoughts that I was sharing in the live Discord chat while I was exchanging this setup.

Alright guys, I'm going to do something that I wouldn't recommend if you can't afford it. risk here, but I'm going to get some spy calls here, this is exactly the pullback, this is exactly the pullback I was looking for, so I'm not going to see this happen and I'm not going to put a little bit of risk on the table, so I'm going to buy some. I'm on some 406 spy calls. I mean, this is exactly what I talked about. I must stick to what I talked about there. This is exactly what I looked for for the rollback to repetition levels. at the 200 SMA I'm a little worried about this little ceiling here at 4065 in ES, you can see we got a little stuck there, we'll get 4065, if we can get that break.

I like this, this should give me a little boost here. maybe there's a little bit of a reverse head and shoulder forming here at the lows that could have been your right shoulder there, so my price target should be 40.72, so I'll look to go down somewhat, I think, at 40.72. because that is the pre-market minimum and it is very possible that it will be a rejection. Point here, okay, I'm taking half off up there, 750. Okay guys, this looks good, anyone take it with me, congratulations, you should be good on the profits. I think I need to reduce that push a little more guys, this is due to a pushback.

I'm going to cut another half if we get a pullback, it should hit 40.72. That's probably where it comes down to that could be your re, it'll come back to there guys. I can almost guarantee it. I'm going to take a little more out of here, guys, on v-wop on the long ES. Since we're above that previous low pivot, then I have no worries guys, so I hope you enjoyed that live recording. I hope you enjoyed the trade I'm sharing with you today, keep an eye on that 200 SMA. Going forward, I think this is a very influential level over the next few days over the next few weeks.

How is the market responding? Is this level of 200 maintained? Will we get the breakdown below? I think this is kind of a middle ground for the SP. 500, a break below 200 will likely see the Bears gain momentum if we hold above. I think the Bulls can continue to build above that 200 SMA. If you want to stay up to date with my market analysis, be sure to hit the 200 SMA. -Live market streams every morning starting at 8 to. m., where I review individual stock futures economic news that is a good way to prepare for the next trading day. That being said, I hope you enjoyed the video once again, please press that as a button if you subscribed to the channel and I hope to see you in the next video peace, thank you