ATM Trading Club Newsletter 

Tuesday, June 3, 2024

We gapped up today to open at 5297.15 and then sold off towards the low of 5234.32, closing at 5283.40. As volatility continues to swing, the bulls persist in fighting and buying dips at every opportunity.

Looking ahead, on Tuesday, June 4, we have factory orders and job openings data coming out at 10am. The market continues to chop around this zone, waiting to pick a direction. Despite the fluctuations, we are still holding the daily trendline, which as of today created a hangman reversal pattern.

On the intraday, we continue to see strong closing as evident on the 5-minute timeframe. We've entered the bottom of the range on the 15-minute timeframe, encountering resistance on the 1-hour chart. The VIX also plays a crucial role here; we need to observe whether it uses the yellow lines as support for a bounce or breaks below them.

Tomorrow's trading will be pivotal, with key economic indicators like factory orders and job openings set to influence market sentiment. Despite today's hangman reversal pattern, the persistent dip-buying by bulls keeps the market buoyant. Watching these levels closely will be crucial for determining the next move.

As we navigate these volatile waters, it's essential to stay alert to both price action and underlying market signals. The interaction between the SPX and the VIX will provide valuable insights into potential market direction. Stay vigilant and prepared to adapt to changing conditions.

Tuesday 0DTE plays:

A gap down would be preferred at the opening bell with a dip buy at 5270 and an aggressive play on a put vertical at 5270/5275 and a conservative play on 5265/5260. A gap up then look for weakness on the MACD and short with a call vertical on 5285/5290 aggressive and conservative the 5303/5310 call vertical. Keep in mind that these would be scalp trades and manage with the levels to hold longer than a scalp as we are still in a bull market and dips are being bought.

Tuesday 0DTE Plays: Entry Set-Up

- Gap Down:

- Dip Buy at 5270:

- Aggressive Play: Put Vertical at 5270/5275

- Conservative Play: Put Vertical at 5265/5260

- Gap Up:

- Short on MACD Weakness:

- Aggressive Play: Call Vertical at 5285/5290

- Conservative Play: Call Vertical at 5303/5310

These setups should be primarily treated as scalp trades. Monitor the levels closely and manage positions accordingly, as we remain in a bull market with ongoing dip buying.