đď¸MAD MILT: Santa Rally Road (Newly Unhoused YEET Population vs Imperator FEDerosa)
An exciting final test that puts a years worth of learning into play at once
âď¸PLUS: you may want to skip ahead if youâre short on time today because there are THREE signature trades with time
FOMC Review: The Prologue
A Simple Monthly Level Break Brings a Reign of Bear Terror Upon a Prosperous Land
The easiest way to understand the FOMC drop is to not overcomplicate itâwe broke a monthly level, and the break that level brought us to the next monthly level. This is actually the same volatility strategy Iâve taught in countless pre-FOMC/CPI YEET; what maddest different was this monthly had a 20 points differentialânob way theyâd go for it within 90 minutesâŚright?
I normally am pretty Devil May Care, but I was holding a ton of callsâas were my people in Plus. Rather than call it quits on the weekâlet alone the dayâand submit to Bearish bondage Iâm going go lead us on a dangerous, high octane thrill ride of indices and flow at 100 mph. Because Iâm mad. You could say IâmâŚwait for itâŚM A D M I L T. (So dumb lol, anywaysâŚ)
SPY: Yesterday before close we strapped into some SPY 590c 12/29 and we are ZOOMING.
Profit take determined by: Hourly close above 591.5. If you didnât get in yesterday, a confirmed break of tnat level means you can join in
Hard Close: 595.21â thats the first weekly level and key resistance likely. Today and tomorrow weâre in the business of winning tradesâno holding for style points.
âąď¸The rest of the day is the waiting game. For what? For the false breakout wick of course.
Whether itâs at the first weekly or they scam up to the monthly, itâs not going to be a pure trend day. I havent quite learned how to articulate why i know theyâre coming, mechanicslly, but this will be a big 2-4 hour candle wick.
If the major level loss is before 10 PST we can go 0DTE. Anything later is tomorrow expiry.
The Secret Road: IWM and the forgotten Valley of Small Caps
The same setup on the day as SPY but with much more tantalizing opportunities
đŠ¸12/23 puts near 216âthey cheated a test of the low yesterday
đLonger term 214s because they need to fill the gap
Then to bring it home calls at either 216 low support or gap support, whichever holds. Why?
Gap fills almost always have a strong reverse direction re
action initially
Check out this flow from Unusual Whales
-2 million poured into the 3x Bull IWM Pro Shares ETF yesterday
-A comparative look at SPY vs IWM Flow
