Trade Plan for 11/20

A Little Fun for Everyone

The weekly post for SPY 0.00%↑ and QQQ 0.00%↑ should be reviewed prior to this. Link to The Week Ahead

The pricing change on the course is now scheduled to go into effect tomorrow (likely late morning) and the announcement regarding Discord perhaps shortly thereafter. Announcement

I did a free video on “Hedging the Edge” which is a concept I often use to manage a position at very binary spots so that I can hold my primary position for a much larger move. Hedging the Edge

SPY 0.00%↑ For today we were trading Friday and Monday’s range as an “Inception box” which I will sometimes (not always) do with an inside day. Whether or not I do so depends on the character of the preceding day. The box(es) from last night’s plan

The Asia session overnight floated up for seemingly no reason and looked above and failed Monday’s high. You’ll note that it was partially back tested and rejected before the news about a potential Russia/Ukraine escalation came out. This drove price to and through Monday’s low. Bulls made a nice reclaim but ran into the overnight VWAP and a second leg down took price through Friday’s low. The overnight low held the spot we were watching from the weekly plan to potentially trigger a look below and fail of last week’s low, 5857-5862.

From the weekly plan:

Today’s RTH opened in between 76.75 and 91.25 and a battle of “F around and find out” ensued. Today’s RTH low was 76.25 so we technically got an RTH LBAF of last week’s low (note that SPX did not take out Friday’s low. Once buyers decisively won this morning battle price ripped nearly in a straight line to the top of the box. Navigating an entry during the first 58 minutes was very difficult, and there was effectively no pullback to buy once bulls laid down the hammer.

As you can see, we closed RTH right below Friday’s high which leaves the door open for the overnight session to completely change everything. This is, once again, one of the benefits to having the ability to trade futures.