Breakout Week For SPX; More Ahead Next Week? May 22nd Plan
As readers know, I got long on Tuesday evening at 4127ish to position for an eventual breakout of the tightest range since 2017 which we had spent the prior 10 days in. This got all the way to 4228 this week, which had been the longest continuous move I had exposure for in 2023 so far, and demonstrates the power of holding runners and why it such a critical part of my system.
Today was OPEX day, and I wrote yesterday: “As anyone who has traded these days know, these are notorious for being choppy terrible trading conditions that tend to pin around a certain point” and this certainly described today, spending it mostly pinned around 4200. Today also saw the first post-breakout dip though after a 100+ point rally this week.
I wrote yesterday: “Shorter term for tomorrow, bulls want to hold 4197-95, 4182 lowest on any dips”. They did - does that mean more upside now? In todays newsletter, I’ll address this, talk my strategy for trailing stops, then provide the actionable plan for Monday.