Options Flows Weekly (12/7)

Good morning traders!

Last week was a good start and expected with a new monthly candle and less pressure on risk assets with the Fed ending their bond selling program as Dan noted in the newsletter but more important, we cleared a key price area on the SP500.

$6870 was the area to clear then we noted that $6900-$6905 would be resistance which we literally ticked on Friday before buying was absorbed pushing price a bit lower.

I had a question from a reader this week about the price areas and I want to address it here with readers (whether you use my service or the newsletter). One thing that I learned when training with Dan was to think of “price as an area” not an exact number so this is why we give ranges.

Personally, when I learned this 10 years ago it helped because I would normally look for exact entries and exits and that would just cause a lot of issues for me but once I started to look at it as an area and understand price-action concepts it started to come together.

I will tell all of you that trade options that when I put on these trades I use this same idea and it helps me to give the trade room to work and I am going to talk about this a little in the post this weekend as well.

This coming week on SP500: This market is bullish after we completed our November OPEX and with a rate cut ahead (and many globally) wanting to be a dooms day analyst here is not conducive to profits. $6850-$6840 is support and we probably test that before pushing to new highs at $7000.

That is a naked price chart above BTW and for those that see the charts I post inside the members area they all look like that because I am a price-action trader and rely on price and then options flows to give me reason to track ideas, get into new ones and also to tell me when to GET OUT ahead of time: this is why we can give targets on these posts.

It’s also the reason there are targets in the new Longvol Report Newsletter: price action.