Biggest Green Week In *3 Years* For SPX. Now What? November 6th Plan
One week ago exactly (when we were down at 4135) the final sentence of my newsletter was “If 4154 reclaims off the bat Monday, we start up direct. There should be a few large green days next week”. We certainly got this, but it was a major understatement because it was not just “a few” large green days this week - but rather every day was a large green day, and nearly every hourly candle of every day. The fact this monster rally started Monday after 8 of the 9 prior days being red was no coincidence - it was this sell that generated the energy for the short squeeze.
This was the largest green week since the current bull market began in October 2022, and the biggest green week since November 2020. As readers recall, I got long on Sunday/Monday on the 4154 buy trigger, and this turned into one of the trades of the better trades of the year for me. Incredibly, ES now finds itself in the exact inverse position to a mere week ago. A week ago we had sold 4 out of 5 days, and this week, we have reversed that entire sell, and rallied 5 of 5 days.
Is there a pullback coming next week, and if so, where are spots to look for dip buys? In today’s newsletter I’ll talk this, I’ll then break down my system for trailing stops in detail (which allowed me to stay in for a large chunk of this weeks rally). Finally, I’ll discuss the actionable trade plan for Monday.