90 day reduction on tariffs with China triggers massive gap up. Trade Ideas for Monday May 12
Are you planning trades that pay over 300%?
On Friday I told THT PRO members that is looked like the price action all day was accumulation and we may gap up on Monday. Our swing play was TSLA 320c. Hopefully open over $7-9.
With SPY crossing over 200ma at 573.50, today funds may begin accumulating again. The overhang right now is that tariff reduction is for 90 days.
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Overnight Action
SPY - pushed to 573 over night and then when details about deal release another 100 point rally to 582.92 came..
AMD - massive bounce to 110
NFLX - strangely is gapping down
META - back over 630
TSLA - gapping up over 320.
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
Trade Recap for Fri May 9
GOLD BOLD ITALIC = price action signal
SOFT YELLOW = thinking/anticipation
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
Notice how the key price action for each of these was recognizing the failed break signals especial near key levels.
Overall the action on Friday was accumulation. I made long shorts at the edge of consolidation. Went to big on final short thought anticipating we break lows by of end of day that ended up going to 0 on the runners.
Luckily I scooped TSLA 320c due to the accumulation action.
GET EXCITED. I’ll be publishing a book called Trading To Win: Stop trading to NOT lose. Title is still in the works. I plan to include exercises to help you improve your mindset and your trading. Leave a comment or send me a message if interested in the book. My birthday is coming in May - I hope to release this before then.
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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 or failed breakdown reversal at key level
Join at VWAP mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
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.
Trade Ideas - Plan for Mon May 12
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
Given the large gap up I have to look for a shorts for profit taking. Just follow our process. I’m not opposed to going long, but I feel at some point this week we should see a 573.50 back test on SPY. At some point I would not be surprised if we get sell the news action initially on trade deal news during regular market session.
NOTE: I’ll be moving airbnbs today so will be trading usual time frames: 10:30-11:30 and 3pm-4pm.