Classic Gap Up Reversal Setup Delivers 1000% on Day 3 of 2025. Trade ideas for Jan 07, 2024
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Good morning traders !
We had to be patient and plan. And that’s exactly what we did. As SPY was pushing higher I took small upside scalps, but I told members very early in the day that 597.50 was the level to break to go short.
I’m super proud of the Option Scanner identifying possible credit sells in SPY calls!
Seeing 593, particularly gave me confidence in the 593.80 target which wasn’t random. It was a 2 level move! Our core process in THT!
This led my alert on SPX 5980p for $1.70 to reach $20! thats 10x! $1700 to $20k potential! The wild thing is that if I entered when the alert came could have been sized in around $1-$1.30 but experience has taught me to pay more after confirmation.
Let’s get into the action and what we have lining up today.
Monday Highlights
SPY - monster gap up and push almost to 600, breaks 597.50 and flushes to 594.
TSLA - monster gap up and reject 425 and 420, leading to a flushing into low 400s where we saw large volume on 430c some in at $3.
NVDA - push to 152 and backtested 149.50. New highs this week very likely.
MSTR - all day rip and grind into 370s
Tuesday Premarket Highlights
SPY - Gapping up slightly as expected to 596s.
TSLA - Sharp drop overnight back to yesterday’s 403 support level on Summon Car Probe by NHTSA.
NVDA - pushed over 153 overnight to new highs in premarket and dipping back on 152 now.
PLTR - Did it get a Cramer kiss of death? He said he expected the stock to increase at 3:30am today. It did push but now it its lower!
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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
2025 Q1 Alert Leaderboard
Here's a look at some of the potential gains achieved through our entry alerts:
2024-01-02 SPX 5880p 11 to 40+
2024-01-02 SPX 5820p $2 to 10
2024-01-03 SPX 5930c $2, dipped to $3 and ran to $11
2024-01-06 SPX 5980p $1.70 → $20 ($1700 to $20k potential)
**Past Performance is not indicative of future results
For live alerts and market commentary click the button below.
Trade Recap for Monday Jan 06
GOLD BOLD ITALIC = price action signal
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
Were you able to spot the signals?
Not much to say, its all in the chart! What a day and kick off to 2025!
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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/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 Tuesday Jan 07
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
Mixed action in premarket, today could be choppy.
Read on for my thoughts/plans…