AMD rips on earnings, MSFT dips. SPY makes impressive overnight reversal! FOMC interest rate decision today. Trade ideas for Wednesday July 31, 2024
We got a 25x trade yesterday! Are you planning 5-20R trades? If not, join THT-PRO
Good morning traders!
Wow! What a day yesterday. The best part as I told THT Pro traders. make a plan, set sell orders for taking profits or stopping out and then go enjoy life. I was getting a massage while I was collecting gains as my targets were met during yesterday’s dump.
The secret, is using the levels, and Edge Trade Planner to set sell targets.
Highlights from yesterday:
Short TSLA 232 - 220p. 1.40 —> 2.60, 3, 5 as sell targets with just 0.20 of risk!
Long attempt stopped and flipped short - SPX 5430p 2.50 ran to 30, but I was all out at 13 and shifted focus to 5400p.
SPX 5400p $2 target 10. Hit 10 and reversed!
SPX 5450c for 0.20 targets: 1, 2, 4.80. over 25x!!!! last exit at 5
Lately, one of my wild paying trade setups have been developing in last 30 minutes of the market. I don’t know how long it will last, but I love it! I’m impatient so, being able to enter a trade and then make 5-20x within 10-15 minutes works great for me!
Be sure to join THT PRO to get the alerts and learn why I take these trades.
Let’s review yesterday’s trades and then get into ideas for today. So much opportunity!
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 Alert Leaderboard
Here's a look at some of the potential gains achieved through our entry alerts:
July 30 - SPX 5430p $2.50 ($2500 —> $30000 potential)
July 30 - SPX 5400p $2 ($2000 —> $10000 potential)
July 30 - TSLA 220p $1.50 ($1500 —> $5000 potential)
July 30 - SPX 5450c $0.20 ($200 —> $5000 potential)
July 29 - SPX 5450p $4.50 ($4500 —> $16000 potential)
July 29 - SPX 5460p $0.20 ($200 —> $1100 potential)
July 29 - SPX 5470p $1.5 ($1500 —> $8000 potential)
July 29 - SPX 5480c credit sell - collect $2700 risk $500
July 29 - SPX 5400p $2 out $6 ($2000 —> $6000 potential)
July 26 - SPX 5400p $2 out $6 ($2000 —> $6000 potential)
July 26 - SPX 5450c $4 out $12 reached 15.50 ($4000 —> $15500 potential)
July 25 - SPX 5450c $1, $1.50, and $1.75. target $10. reached $10! ($1000 —> $10000 potential)
July 25 - SPX 5450c $5. reached $41.70! ($5000 —> $41700 potential)
July 22 - CRWD 240p $1.7. reached $3.5! ($1700 —> $3500 potential)
July 22 - SPX 5580c $0.5. reached $3.3! ($500 —> $3300 potential)
July 19 - SPX 5500p $2. reached $12! ($2000 —> $12000 potential)
July 18 - SPX 5580p $5. reached $53+! ($5000 —> $53000 potential)
July 17 - SPX 5540c $2. reached $16! ($2000 —> $16000 potential)
July 16 - SPX 5660c $2. reached $10! ($2000 —> $10000 potential)
July 15 - SPX 5650c $1. reached $4! ($1000 —> $4000 potential)
July 11 - SPX 5600p $2. reached $23! ($2000 —> $23000 potential)
July 09 - Credit Sell SPX 5590/5595 bear calls 2.30-2.50 stops at 2.60 ( $2500 premium collected per 5k position risking $300)
July 08 - AVGO 1800c 13( $1300—> $2250 potential)
July 08 - SPX 5560p 2.50 stops 2.30 ( $2500—> $5000 potential)
July 08 - TSLA 270c 4.50 target 7.50 ( $4500—> $7600 potential)
July 03 - SPX 5520 2.5 ($2500—> $18000 potential)
July 02 - TSLA 225c 3.5 ($3500—> $8500 potential)
July 02 - SPX 5500c 2.50 ($2500 —> $10000 potential)
July 02 - SPX 5470 Bull Puts 2.50 ($2500 credit collected)
July 01 - closed TSLA Swing $2.65—> $12.00
**Past Performance is not indicative of future results
For live alerts and market commentary click the button below.
Tuesday Recap
Let’s review Mondays trades. Did you take advantage? If not read on an learn how.
SPY/SPX
In yesterday’s blog I wrote go short off 547.50 rejection of consider long on 544.50 or 542.50. Here is how I read the price action.
First 547.50 was rejected, and then vwap was rejection after the first 15minutes of the market. So we target and assume 544.50 will break and count 2 levels down. That gives m 542-542.70 as my main target. Notice how 542 breaks, that shows more downside can come if 542.50/542.70 is rejected which is exactly what happened and why we took 5400p. then using a bit of math and intuition I told THT-PRO members my target was $10 on the 5400p for the exit. I still take profits per rules at 4 and 6. but goal is to sell runners at $10. Not bad for 5x trade!
I was pretty much done for the day at this point. I planned and execute 4 trades well. That is more than enough and I told members I’ll be back for last hour or so. I sat down around 3:30 and started reviewing the price action and made a thesis that the market will either close at 540 or 542.50. So with that I alerted I wanted 5420p for 0.50 and 5450c for 0.20. Both filled. 5420p got wiped, but with the overshoot int 543.50, SPX 5450c went from 0.20 to $5. That is 25x!!! I alerted I was all out at 5. don’t care what happens from there. Turned out to be the perfect exit! (Do I care that it got to 6.75? Absolutely not. look what happened minutes later). ALWAYS TAKE PROFITS SYSTEMATICALLY
We don’t get these trades every day or week, but if you are busy and not already a member consider joining THT-PRO members in taking advantage of these wild trades after 3:30pm.
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 Wednesday July 31
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
Guys my trading process is relatively simple. Identify Key levels, Define thesis, identify price action to match or reject thesis. Take profits or losses systematically. That’s it. Keep it simple.
We had a wild market reversal overnight and FOMC interest rate decision at 2pm this afternoon. Given this I will likely skip the morning trade session and come back and trade around 2:30-2:45. Why 2:30? I want to not get baited by the chop that typically develops right after 2pm.
Overall ideally there is some profit taking, back test of 544.70, and reclaim of 547.50 for a push into 550.50 and possibly 555 today.
Here are the levels and ideas: