CPI and PPI numbers trigger rallies? Will PPI get faded like CPI? Trade ideas for Wed Jul 16
What's stopping you from making 200-500%? Stop overtrading, and make more in less time. Read on to learn how I do it.
Good morning!
Yesterday we got a Spectre special that did over 1000% and reached 2000% at peak!
How did we get this? by following process and being systematic. We also faded the gap up driven by CPI. What a day!
Today PPI numbers have triggered a rally. The question is will it get faded too or will the grind continue.
IMHO the answer to that lies to why not which way will it go, but at what points do you have great risk/reward and you can establish a position, take profits, and then let the market do what ever it wants to do. The point is, you should be thinking in terms of what direction with respect to what level instead of where does it go from here!
Rather than worry about direction, worry about positioning, execution and risk/reward.
Remember that trade that did over 1000%. Guess what I also had another position that went to 0. It was 100% ok, because the process was systematic and overall profitable!
Let’s get into the trades/education! Later in the blog, I’ll tell you my thoughts about the direction and the overnight price action.
SPY/SPX
Morning trade setup - Gap up Reversal into New all time highs.
This was a little bit of a challenge. I really wanted 629 or 631 to get short. but a bug in me said, why not short using /ES vs the highs. its like 5 points of risk and 15-40 points of opportunity. Turned out to be 65 points!
Once SPY rejected the 10:30 level and then went red it steup the aftenoon trade. especially the 2:30 rejection when it couldn’t go green.
By end of day we more or less got the flush into 621.70!
Here is what happened with 6270p(morning) and 6250p(afternoon).
For the close I alerted yolos on SPX 6250p for 0.50 and SPX 6260c for 0.50 expecting a big move in either direction but with a short bias due to each high’s rejection not being able to go green on the day.
Imagine 10 contracts fo $500 paying $5-10k. while also losing $500 on the other side. That is how I like to think, plan, and bet.
There is massive opportunity in this market. Are you taking advantage? Literally have planned and alerted trades that pay over 300-1000%! You will need patience to wait for entries and the exits. But if you have self discipline or trust bracket orders, my process can help you get the results you want.
Thoughts from Thurs price action:
SPY made a new high and was poised got 630+
Trump tariffs comments may have triggered overnight selling
BTFD bias imho continues until 619 breaks. We dipped to 621.40 overnight.
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
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 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.
Securing Profits on Options overnight
Sometimes you get this massive paper gains overnight on options but you can’t secure it right? Well if you have a big enough account and a margin account if you have calls you can. What you need to do is buy or sell the stock overnight. and the option turns into a hedge against that position essentially securing your profits.
Trade Ideas - Plan for Wed Jul 16
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
Market gapping on PPI.. Will it hold? Here is my plan.