Pre-market Live and Options Picks for 04 05 21

Good morning, traders, happy Monday. This is Jake from I know I haven’t made a Pre-Market Live in the last week or two. I’ve just been in the middle of entertaining. I had my girlfriend come in from out of town, and working on the studio, all that good stuff. Anyway, let’s get right into today’s charts. I’ll show you what I’m looking at this morning pre-market.

SBX is up. The futures are up. The SPY is up. Let’s take a look at SPY pre-market just to give you an idea of what I’m looking at here [00:48]. I’ll go to the five-day, the ten-minute time frame. Nice, I should have just held my calls from Friday. What a great run.

If you look, you can see we have this trend line on a smaller timeline. Then we’ve got this upper trend line you can see here [01:44]. It’s a little confusing because I see this [01:48]. This [02:04] also is suspect. I don’t know. Sometimes you have to just play with it. It’s all price action. It’s the buyers and the sellers. You’re looking for where there’s a uniformity to what’s called a channel.

Also, this area right here [02:27], you can think of it as resistance. Now, it’s support since it used to be an area where the buyers couldn’t push it higher, couldn’t push it higher, couldn’t push it higher. Finally, it was able to push it higher. Came back to where? This [02:44] used to be resistance. Now, it becomes support. It dipped below it a little bit after hours and then boom, boom. This stuff works like a charm. I’m telling you it works 90% of the time.

I’m watching SPY today. It’s Monday, so SPY has same day expiration options. I really like trading SPY on Mondays, Wednesdays, and Fridays because it has the same day expiration options. TSLA I’m also looking at, but we’ve got this gap window to fill here [03:32] at basically six. It broke the 700, so a few things could happen here.

We could see a little selling if SPY has a little bit of a pullback. We could see a pullback to the 691 area, which is previous resistance now connect to support because they gapped it up above this area right here [03:59] of resistance. You could see a little bit of selling come back and hit this, test it. We also have this gap window fill. This is called a gap window. Usually, it likes to fill it before making its next leg up.

If I could find another example, maybe somewhere back here [04:19] in the historical price action on TSLA. It was up for a day, sold off, not quite the gap fill. What did it do? Sideways, gap up again. What does it do? Pull back to fill the gap window. It took three days to fill the gap fill window. Sometimes it’s the same day. You can see we went even lower. This [05:25] was a hard area to be swinging long or short. It was more just intraday action.

What a nice bounce on TSLA. It’s above here [05:45] too. It’s above the 700. It looks bullish even though it looks a little oversold on the shorter time frames, the 10-minute, the 15, and the 15-minute. I’m just going to have to wait and see how this plays out. I’m not rushing into anything at the open.

The first trade of the day, I like SPY puts or TSLA puts just because I know we have [06:25] gap fill window, and we need to come back to the bottom of this channel right here [06:32] to reload for the next leg up. See how we’re hitting it? I don’t think we’re going to go much higher here [06:41]. I would be so surprised if we made it to this 405 area. I think 402 puts, and then take them off, and reload them by the calls.

Even on the ten-minute time frame, look at this [07:11]. The RSI is maxed out, on the Relative Strength Index, the RSI on the ten-minute time frame. If we got to the 15-minute time frame, we’re also on the upper range. We’re also on the upper range on the stochastic on the 15-minute time frame. Sometimes the five-minute time frame works a little better on SPY for some reason that the ten-minute.

That being said, I like the ten-minute because it’s a little less noise and it’s a little bit more of a hold than it is a scalp. It can be misleading too, a day like this. It’s just on the ten-minute time frame, see how it was going up. This was going down like that. This was going up. We had a lot.

Typically, it’s not like that. It’s a little easier to trade. Here’s [08:19] a good example on the ten-minute time frame. You bought here [08:24]. Buy here [08:30], right here [08:32], and here [08:33]. Hold it, sell at the resistance which is right in here [08:38], right in here [08:39]. SPY has just got to come down. It’s just got to come down.

It’s really risky buying anything when the market opens. It’s really just a tough trade. If we shoot up for this resistance, I might definitely put some puts on just for a quick trade. It is 403. I’ll probably get the 402 puts. It’s a little low. It’s literally at the bottom of the range. It’s already at 403.

This [09:54] action was really tough to trade on Friday on the five-minute time frame, just grueling stuff here [10:04]. It was just up and then soupy, choppy, chop. It was so hard to trade this. This is a good buy right here [10:39] on the five-minute time frame. Sometimes I dump it at the close.

Really not much to do today on a Monday. I think everybody’s got the Easter hangover. Let’s stay green. Have a nice, easy day. I really do appreciate it for being a member. God bless, and I’ll see you on the charts.

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