Bears Are Asleep. ($SPX/$ES)

Landshark Capital

“We need to bounce to start the US Open so that $3900/$3910 can trade - they are key but MR1 (Resistance) at $3920 is key. So if we get there we need to sell off or we risk an inside/balanced day”

That’s what I wrote in today’s action plan for subscribers.

Today was a day where I was very interested in looking for a big, short, I mean another $100 points lower, and we could have had it given we tested higher before trading lower to $3880-$3870 (a key zone).

One, I don’t even “short in the hole” - that’s a trader’s term for shorting something when it’s already sold off - something, especially in futures, that you don’t want to do.

I tested shorts through ES Futures puts because that $3880-$3870 zone is a zone of support, but zones can break and that had a chance of doing so.

In certain situations, I’ll elect to structure trades with ES Futures or a combination of both the actual futures and the Futures Options - today was one of those because of the uncertainty at $3880-$3870.

We break that, we sell off, and we have a wave to catch.

We catch a bid; we rally a little and as long as we stay below $3920 we’re ok.

I said this exact thing in the subscriber’s chat room today and ran that playbook.

Opex is Friday, so all these indices might become victims of “pinning” so is there more chop on the way or?

Let’s get into the recap for today and the playbook into end of week….