SPX pcs 7550 - profits taken - here is the reason for taking the spread - (9/10)
There is only one main reason for taking a spread / a trade on SPX. Considering the fact that I always have an exact pre-trade plan for taking a specific spread at a planned level, the real trigger is when SPX simply respects the levels.
Yesterday I had the ES 7622 level (SPX = 7615) and the ES 7589 level (SPX = 7581) as the target supports for the day. On a PPI day I do never enter a trade prior the report, I wait for the initial reaction, then the post-report reaction, before I get all levels confirmed.
So at 08:30 am EST time the market tried bouncing back up before it heavily went down almost hitting my 3rd. support level on the chart. That was the moment for me for taking the put credit spread with short at 7550 and long at 7540 - actually my standard 10-wide spread.
[SPX 7589 as support](https://preview.redd.it/juzco056wqoh1.png?width=1718&format=png&auto=webp&s=3d606aae04c2f3315ed4f60f55a0446a11dbc617)
The moment was crucial because if we have not recovered the 7589 level, next target down was 7566 on ES, which is exactly only 8 pts. above my short. And believe it or not, the last thing I wanted to see is continuation and hitting the 4th support level on ES/SPX.
I took the trade around 08:45 am EST and then added some more contracts as the premium was better at that time and I was sure about the levels.
Before I opened the spread I checked once again the levels. The 7575 was shown as put wall. Yes, it was scored only as a fragile one, but at the same time it aligned with my ES support level of 7581.
[www.gammawalls.com](https://preview.redd.it/9544f0l2xqoh1.png?width=1434&format=png&auto=webp&s=2e0b820a75482d830b18d23a57690634e1206fbd)
**Summary:**
\- pre-planning entry levels is a must for me. Hope all of you do pre-plan your trades.
\- ES is absolutely leading as far as levels are concerned.
\- I do not trade on PPI days before the report. Same for tomorrow. No trades before CPI report.
\- I do check if my ES levels align with the put and call walls before I enter the trade.
**Why:** I enter only because my entry levels were respected.
**When:** Only when all factors align
I must confess, that I never manage to capture the best possible entry. In most cases slightly or 20-25% better entry was possible. But actually the best entries are supposed to be in prison under the shower. So keep safe at home and trade smart.
Final score/profit: slightly above $800
https://preview.redd.it/1uzi55a1yqoh1.png?width=2244&format=png&auto=webp&s=786921426de892b3cfe9838fde8f8d943b5251e7
Used source: [www.gammawalls.com](http://www.gammawalls.com)