Today's SPY Trade Idea

Good morning traders,

Yesterday I sent you my morning trade idea which was SPY calls and the markets just ripped higher. Here at the Market Navigator service this is what I do each morning for members and I’d like to show you another example today. I hope you enjoy it.

PS before we get into the meat of the email, I’d like to hear from YOU. Vote on the poll below to let me know your take and we can compare.

Pre-Market and European Markets

Economic Calendar

Today’s Fundamental Highlights

Morning Update: Markets are off and running this morning as the SPY is pushing right back up toward $423 highs from Monday. Earnings are going to start flowing in this week and we have KO already posting a win this morning. GM beat on earnings as well but is pulling back a bit on its guidance going forward with the UAW strike still rolling along. Bitcoin is smashing higher (damn you) and European markets look strong in the midday. So far all systems go for a potential run higher. Some of the key areas for me are posted below in the chart area of today’s email. I’ll break it all down in the chat room from 9am to 11am live in the Market Masters chat room.

Today’s Educational Focus: My favorite BULLISH Candlestick patterns are engulfing, hammer, and doji candlestick patterns. Learn about them here.

Today’s key areas for me: The SPY chart is starting to firm up a bit as earnings come in and push markets higher, for now. Today I am watching Monday’s high which was just shy of $425. This was an old area of resistance and it is a mental area of resistance for me that I think will be key to break for the next possible more toward the 20 SMA around $429 range. Mental areas of resistance are areas not seen on charts but are sometimes areas traders use when there is a big gap from one chart resistance to the next. To the downside, I am watching $420 and then $418 area which was Monday’s low. I think we hold these levels for now unless there is a major earnings miss or two this week.

Today’s Teaching Focus

• Video lessons.

• Featured video: How Jeff plays both sides of the market using technicals (watch here.)

• Live Trading and Teaching Daily With Jeff Williams

Today’s Trading Plan

My morning trade plan: My plan for today will be to draw the 15 min ORB live in chat then look to play the breakout or break down. So please note, my TOD will usually not come any sooner than 9:45am. That being said, I like a possible early dip to go calls. I think markets have another day of movement in them before some pullback. That being said, we have news at 9:45am so I won’t be alerting any trades before then.

My mid morning reversal: This is where I look for a market change of direction around 11am to 11:30am. If I see a morning run up, then I’ll look for a pull back. If we fall early, then I’ll look for a move higher.

Today’s Trade Idea

SPY October 31 $421 Calls

Audible Trade Idea

SPY October 31 $427 Puts

Note: Audible simply means “backup.” It is a football term. This idea is a trade idea in the opposite direction of the trade of the day. I begin market analysis well ahead of sending you 8:45 am ET emails, and sometimes market conditions change - so - I want to show up prepared!

 P.S. If you would like to see if you have any credits you can apply to any of my services, please reach out to Jeff Brown at [email protected] or call him at 800-585-4488