SPY gapped down this morning. And I guarantee you… thousands of traders woke up in a panic.
They saw red on the screen, chest tightening, palms sweating. So they did what panicked traders always do: they chased it.
Bought puts. Figured “it’s going lower.” Felt smart for about 20 minutes.
Then SPY reversed… and those puts? Worthless by mid-morning.
This is what happens when you trade with your emotions instead of a plan. You see red and assume it’s gonna get redder. You see green and convince yourself it’s gonna keep ripping.
You’re not trading levels. You’re trading FEELINGS. And feelings are expensive.
Here’s what I sent Game Plan members before the bell:
Call Zone: When SPY breaks into 683.87, Buy To Open the SPY Feb 24 684 Call. Target: 684.66. Touch Down: 686.51.
Put Zone: When SPY breaks into 679.53, Buy To Open the SPY Feb 24 678 Put. Target: 678.23. Touch Down: 676.96.
Calls AND puts. Both loaded and ready for either direction. No bias, no hope, no panic.
Just two levels. Whichever one hits first, we execute.
The put zone never hit. The call zone did. So we bought calls.
SPY reversed, climbed back up, broke through 683.87, and kept running. 40%+ gains by close.
Not because we “knew” the market would bounce… but because we had a PLAN for both directions and executed the one that triggered.
That’s the difference between mechanical execution and emotional chaos. When you have zones, trading becomes simple.
You’re not hoping. You’re not guessing. You’re just watching two levels and pulling the trigger on whichever one breaks.
You win or you lose. But you’re not spiraling, you’re not revenge trading, and you’re not sitting there at 3:59 PM wondering what the hell just happened.
Tomorrow’s gonna test a lot of traders. NVDA reports earnings after the bell, and Wednesday morning’s gonna be chaos. Big gap up or big gap down.
And here’s what’s gonna happen: traders are gonna wake up, see the gap, and let their emotions take over. Again.
They’ll chase the move. They’ll convince themselves “this time it’s different.” They’ll feel smart… until they don’t.
But Game Plan members will have zones for both directions. No emotions, just levels.
If one hits, execute. If neither hits, wait. That’s the plan.
If you want Wednesday’s zones before the opening bell – before NVDA chaos hits – click here.
Rock On,
Voz