20% of companies report this week. How will market react? Trade ideas for Monday Oct 21, 2024
Are you planning trades that pay as much as 5 to 20 times your risk? If not, join THT-PRO.
Good morning traders!
Want more discipline and planning in your trading? Join the small account challenge now!
Over the weekend I spent a lot of time on mapping how to better systemize my trading and processes and make it relatable to people. I need your feedback. How many of you look at your trading the way you would as a business. Do you have an “operations manual”?
Would you expect a business to be successful and generate consistent revenue if it just randomly cold called a bunch of people and asked them to buy something?
Let me know if a workshop or course around this topic would be helpful. The goal is that at the end of the training you will have a step by step outline of what you need to be doing day in day out on an intraday, daily, weekly, and monthly basis.
A big part of my motivation for this is I need massive clarity in my own processes so I can automate the hell out of it. I want to free up my time while generating 10 times more profit in my trading. Let’s make it happen together. Leave a comment on your thoughts.
Friday’s Price Action
There was only a couple of clean trade setups Friday and I pretty much just let my trades work.
SPY only gave a 2 point range and it felt a bit exhausted after a squeeze failed to develop over 585.
MSTR broke over 200 and ran to 218.50, almost getting to my 220 target for the day! We scooped 210c for $1 and they wen to $8.50!
NFLX ran to my 761+ target and when it dipped toward vwap it couldn’t even reach it. I attempt a short on it, but got stopped. It was just too strong!
Monday Premarket Action
SPY gapping down back into 582.50 support. Take a look at pass behavior in SPY. it likes to sell near new high but often turns into tight consolidation days before another leg. With elections 2 weeks away, I think we can have a profit taking yank back into 575, at some point before going higher. Overall I’m thinking 585-610 is doable into November.
NVDA massive darkpool trade at 138. If it doesn’t reclaim, and it turns into a ceiling, chips may get another dip. However if it can reclaim with volume maybe we see 145+ this week. Other chips are gapping down some in premarket too.
MSTR holding pretty well. hit 219.70 then 212.50 overnight and now back to Fridays close.
META - On friday I suggested META could run to 585. it dipped to 578 and ran to 584 on Friday and then faded all day. So it looks like it’s not ready yet to push 600. Keep an eye out on it for a failed breakdown reversal day to start a swing.
Overall I look at this dip as consolidation behavior and not yet as a signal to get bearish.
Let’s review the trade signals in SPY and go over ideas for today.
Join THT PRO to get alerts, real-time commentary, and improve trading habits.
Introduction (for New Readers)
Welcome to my blog on Two Hour Trading—your daily source for market insights and trading opportunities. Here, you’ll find comprehensive market analysis, educational lessons, and trade ideas to help you excel in trading, all while spending less than two hours a day.
What Subscribers Get
Subscribers receive daily market analysis updates, educational content, and up to three trade ideas each morning based on real-life examples and my trading approach.
NOTE: screenshots from chat are from Edge Trade Planner. A platform available to THT PRO members. Join Us for live commentary and planning. Note my goal is to actively trade less than 2 hours a day finding 1 to 4 great trades a day.
What is Two Hour Trading?
Two Hour Trading is my system for finding and executing trades while spending less than two hours a day trading. My goal is to earn 100-300% on the capital I risk while waiting for 1000%+ gain trades to set up. Key benefits include:
High-quality trades with excellent reward vs. risk
Avoiding overtrading and losses from it
Trading to win vs. trading not to lose
Stacking the deck in your favor
2024 Q4 Alert Leaderboard
Here's a look at some of the potential gains achieved through our entry alerts:
Oct 18- MSTR 210c $1 → $8.50 ($1000 —> $8500 potential)
Oct 17 - NFLX 705 commons buy after earning earnings. Exit 761. $56 Dollars!
Oct 17- SPX 5870c $1.80 → $7 ($1800 —> $7000 potential)
Oct 15- SPX 5800p $2.20 → $5.50 ($2200 —> $5500 potential)
Oct 15 - SMCI 50c $0.60→ $1.85 ($600 —> $1850 potential)
Oct 15 - SPX 5830c $4 → $18 ($4000 —> $18000 potential)
Oct 14 - SPX 5870c $0.45 → $4.4 ($450 —> $4400 potential)
Oct 14 - MSTR 210p 4.50 →$13.7 ($4500 → 13700 potential)
Oct 14 - PDD 135p(swing) 1.50 → $12 ($1500 → $12000 potential)
Oct 11 - SPX 5810c $5 → $14 ($5000 —> $14000 potential)
Oct 11 - SPX 5805p $1 → $13.50 ($1000 —> $13500 potential)
Oct 10 - SPX 5800c $2 → $6 ($2000 —> $6000 potential)
Oct 10 - SPX 5750p $0.50 → $3.40 ($500 —> $3400 potential)
Oct 09 - SPX 5775c $2.5 (thanks JY!) → $22 ($2500 —> $22000 potential)
Oct 09 - SPX 5800c $0.5 (dipped 0.20) → $2.45 ($500 —> $2450 potential)
Oct 09 - SPX 5790c $1 (dipped 0.70) → $8.65 ($1000 —> $8650 potential)
Oct 09 - SPX 5790c Round 2 $3.5 → $7.5 ($3500 —> $7500 potential)
Oct 08 - SPX 5750c $1 (dipped 0.70) → $2.30 ($1000 —> $8400 potential)
Oct 08 - SPX 5750c $2 (dipped 1.70) → $8.40 ($2000 —> $8400 potential)
Oct 08 - MSFT 415c $3 risk 0.20 —> 4.10 ($3000 → $4100) 5R!
Oct 07 - SPX 5720c $1 (dipped 1.20) → $3.30 ($1200 —> $3300 potential)
Oct 07 - SPX 5690p $1.50 (dipped 1.55) → $10.50 ($1550 —> $10500 potential)
Oct 07 - PDD 145p $2.35 (swing) → 5
Oct 04 - SPX 5700p $5 → $15.50 ($5000 —> $15500 potential)
Oct 04 - SPX 5730c $6 → $23.90 ($6000 —> $23900 potential)
Oct 04 - SPX 5740c $1.50 → $14 ($1500 —> $14000 potential)
Oct 04 - SPX 5750c $1 → $5 ($1000 —> $5000 potential)
Oct 04 - OXY 55c $0.35 → $0.80 ($3500 —> $8000 potential)
Oct 04 - META 595c $0.12 → 1.90 ($1200 —> $19000 potential)
Oct 03 - SPX 5655p $1 → $5 ($1000 —> $5000 potential)
Oct 03 - SPX 5690c $2 → $14.20($2000 → $14200 potential)
Oct 03 - SPX 5695c $1-2 → $9.80 ($1500 → $9800 potential)
Oct 03 - NVDA 125c $0.55 (swing)
Oct 03 - XOM 123c $0.22 (swing)
Oct 03 - OXY 55c $0.33 (swing)
Oct 03 - PDD 155c $1.20 (swing)
Oct 03 - SPX 5720/25 bear calls $2 —> 0 (risk $500 to collect $2000 premium)
Oct 02 - SPX 5700p $2.50 → $8.50 ($2500 —> $8500 potential)
Oct 02 - SPX 5720/25 bear calls $2.50 —> 0 (risk $500 to collect $2500 premium)
Oct 01 - SPX 5720p $3 → $12 ($3000 —> $12000 potential)
**Past Performance is not indicative of future results
For live alerts and market commentary click the button below.
Trade Recap for Friday Oct 18
GOLD BOLD ITALIC = price action signal
GOLD REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
Most of my energy was focused on NFLX and MSTR on Friday, and given I nailed MSTR I didn’t really care about a trade in SPY. The action wasn’t that clean and momentum stalled , I tried a couple of small longs in after noon in case a 2 level move came, but it didn’t and got stopped.
I missed the best risk/reward long spot entries denoted by the GREEN GO LONG.
MSTR
Great setup! I tried long on Thursday at 2.50, it ran to 4 and then dropped to 1.50 on $200c. Unfortunately stopped myself out instead of swinging it.
But Friday.. I rolled up to 210c once I saw the Price action at after 10:00am! Got filled around 10:30am. Guys thing about that. Contracts got cheaper, and I was able to watch the price action for an hour to get a feel for what happens next.
I locked in between 4 and 6 within 2 hours and then let runner run to $8 plus before my trailing stop took me out at 6.60.
If you are busy and want to see my commentary and ideas in real time consider joining THT-PRO.
Education - How to Join a Strong Trend
The process I typically follow for joining a strong trend are as follows:
All day grinder: join on dips to 20ma
Multi-day grinder:
Join either on support test of morning lows/failed breakdown reversal
Join at vwap mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
Education - Systematic Profit Taking
How do I take profits? I keep it relatively simple. Depending on the entry and range to the next levels I typically with take profits 50-100% of my profits at 3-10R and then raise stops to above entry with a goal of letting runners take me to the next level or 2 and to then reload if I believe we are consolidating before the next leg.
I then repeat the same process on the reload.
Let me know in the comments if you have questions or would like to see examples, I’ll share them.
Trade Ideas - Plan for Monday Oct 21
Stick to process. The process and trade setups I teach works. Rinse and repeat over and over again. There will be losses. Any good system will have them. Being systematic also means the gains will repeat and come again too. If you keep changing your system/process trying in an effort to never lose a trade, you will never get to where you want to go.
Ideas
Don’t have a feel for how today will go. My bias is that we may dip a little and consolidate/base today while waiting for e/r reports. if supports start to break, then will evaluate if it has volume or not.
Be sure to read this post in preparation for action this week ahead of elections.
Let’s go over the ideas…