What Happened on Tuesday?

SPY Day Range: 355.71 - 363.03 (New 52 week Low set)
Again I was anticipating a calm day and it was a wild one with more random international news to move the markets.
Bank of England said that they are removing their floor on their bonds this Friday and that pension funds need to figure it out. This caused a violent sell off in the markets that set a new 52 week low.
Tuesday marked the second day in a row and the 3rd time we closed below the June lows.

What Am I Looking Out For This Week?

PPI is set to come out tomorrow and will it give any hint as to what the CPI may bring? This report normally comes out after the CPI so it hasn't had a big market reaction to it. But now it comes before so we shall see.
With the CPI data coming up on Thursday, we got a chance for the peak inflation theory to re-enter the discussion if that report comes in cooler. Not likely, but something to monitor.
Can SPY defend the June lows and stay above it on the week? This is the big technical item on watch for the week.

I have no core position and I am back to all cash. I scalped calls and puts today for a nice profit. I was only willing to play calls, but then the BoE news came in and gave me a nice put opportunity at the end of the day.
Scalps - I am getting back into scalp trading as well when the setups merit it. This means waiting until 10:30am and let my intraday Fibs have some data to work with.

We have a lot of Fed Speakers this week. Check the full calendar here: stonks.chat/feed/catalysts
Wednesday: PPI at 8:30am (This one is interesting as it is before CPI this time)
Wednesday: LaGarde Speech at 9:30am (This has DXY implications)
Wednesday: FOMC Minutes at 2:00pm. I am not expecting much from this since a lot of Fed speakers have echoed what these minutes should say.
Thursday: CPI at 8:30am. This is the main event. Strangle play opportunity here.
Friday: Retail Sales Data at 8:30am
Friday: UoM Consumer Sentiment at 10am

SPY Technicals - The 30 min, 1 hour, 4 hour and Daily are just slightly above oversold. One gap down and we will be in severely oversold conditions on all the charts. I would prefer all these to be neutral heading into Thursday.
SPY Fibs for ATH to June 2022 low - 362 is the .000 line. Bulls could not hold this line, so we indeed dropped to 358 very quickly.
SPY Fibs for COVID low to ATH - 380 is the .382. 349 is the .500.
SPY - The 200 Weekly SMA is 358. The bulls need to keep this level.

PPI's data is not big enough to set a trend imo, so I will probably just play it light with some small scalps until about 3pm, where I will enter my strangle play.
FOMC Minutes are a nothing event to me, so I am not expecting any big move after they are released.
If the market is near 52 week lows at 3pm, I will not play a strangle, and just play the reaction to the data on Thursday.
If the market can close green and/or the charts are not in oversold territory on the 30 min and up charts, then I will enter the strangle.
The Strangle play is buying calls and puts $2 OTM for SPY for Friday. The goal of this play is one to end at 0 and the other to be up at +100% to make up for the losses. I only play these leading up to economic data events where I believe we can get a violent move in a direction. There are only about 3 of these events a month.
If the strangle I enter at 3pm is nice and profitable by the close, I will close it out and re-enter another one that is more balanced.
NOTE: I am turning into a swing trader for various reasons, so please keep that in mind moving forward. My options plays will be always a few weeks out because of this.
This is not financial advice

Excellent plan.

"

If the market is near 52 week lows at 3pm, I will not play a strangle, and just play the reaction to the data on Thursday.
If the market can close green and/or the charts are not in oversold territory on the 30 min and up charts, then I will enter the strangle."