Decision time for market as more inflation data comes. Will buying accelerate? Trade ideas for May 6
AMD gets upgrade to buy from accumulate with 195 PT
Good morning traders!
Finally feeling a little better. Hopefully make it back into training after a 1 week hiatus.
Friday’s action came early and then moved into accumulation mode / pinned action instead of anything we can scalp.
Let’s get into the trade reviews and then go overs some ideas for today.
Introduction (for New Readers)
Welcome to my blog on Two Hour Trading, your daily source for market insights and trading opportunities. In this blog, I will provide you with a comprehensive analysis of the market, educational lessons, and trade ideas to help you stay ahead in your trading journey and best of all doing it less than two hours a day.
What Subscribers Get
Subscribers to this blog will receive daily updates on market analysis, educational content, and up to three trade ideas each morning, all based on real-life examples and my personal approach to trading.
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?
It’s 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 setup. Key benefits:
High Quality trades with great reward vs risk
Avoid Overtrading and losses from it
Trading to Win vs Trading to Not Lose
Stacking the deck in your favor
2024 Alert Leaderboard
(I’ve decided to include a leaderboard so you can see what potential the 2 Hour Trading System has)
The following is based on entry alerts.
May 3 - SPX 5150/5155 bear calls $1.50 —> ($1500 premium potential)
May 2 - SPX 5020p $7 —> ($700 → $2180 potential)
May 2 - SPX 5070c $1.20 —> ($1500 → $7200 potential)
May 2 - SPX 5070c $3—> ($3000 → $7200 potential)
Apr 30 - SPX 5080p $3 —> ($3000 → $45000 potential)
Apr 23 - SPX 5060/5055 bull puts - Entry $1.75 ($1750 premium potential) drawdown < $200
Apr 22 - SPX 5050c swing - $5.50 → ($5500 → $42000 potential)
Apr 22 - SPX 5000c - $3.20 → ($3200 → $39000 potential)
Apr 22 - SPX 5020c - $0.20 alert, dipped to 0.55, fill at $0.70 → ($700 → $20000 potential)
Apr 19 - SMCI 750p - $1.50 → ($1500 → $38k+ potential)
Apr 19 - NVDA 800p - Entry $0.5 ($500→$40k potential)
Apr 18 - SPX 5050c - Entry $6 ($6000→$16000 potential)
Apr 18 - SPX 5020p - Entry $4 ($5000→$20000 potential)
Apr 16 - SPX 5140/5135 bull puts - Entry $2.50 ($2500 premium potential) drawdown < $300
Apr 12 - SPX 5100p $1. (dipped to 1.30) - Entry $2 ($2500 premium potential)
Apr 11 - SPX 5180/5185 bear calls - Entry $2.50 ($2500 premium potential)
Apr 10 - SPX 5180/5185 bear calls - Entry $2.50 ($2500 premium potential)
Apr 10 - SPX 5170c - Entry 0.50 ($500 → $5000 potential)
Apr 9 - SPX 5185/5180 bull puts - Entry $3 ($3000 premium potential)
Apr 9 - SPX 5205c - Entry $0.50 ($500→ $6000 potential)
Apr 8 - SPX 5225/5230 bear calls - Entry $1.20 ($1200 premium potential)
Apr 8 - SPX 5200/5195 bear puts - Entry $0.10 ($1000→ $8000 potential)
Apr 4 - SPX 5250p - Entry $4 ($4000→ $100k potential)
Apr 4 - SPX 5180p - Entry $1.30 ($1300 > $32k potential)
Apr 3 - SPX 5175/5170 bull put - Entry $1.50 ($1500 premium potential)
Apr 2 - SPX 5175/5170 bull put - Entry $1.50 ($1500 premium potential)
Apr 2 - SPX 5205/5200 bull put - Entry $1.50 ($1500 premium potential)
**Past Performance is not indicative of future results
For live alerts and market commentary click the button below.
Friday’s Price Action (Education)
You don't try to make $100,000 ...You don’t start by saying, I’m going to make the biggest most profitable trade and turn $1000 into $100,000 and fix all my bad trades before.
You say, I’m going to plan and execute 1 trade as perfectly as I can today. You do that every single day, and soon you'll have a $100,000 and likely much more!
SPY / SPX
512.50 was essentially a 2 level gap up. I missed the short entry on that pop on puts, however I expected consolidation or pullback would be needed before going another level higher. Given recent experience, I esitimated 1.50-2 may get filled on SPX 5150/5155 bear calls. And sure enough into that 512.50 spike we go the fill and these bled out to 0 by end of day.
Per the blog, waiting for the first hour or two would let you, see support get established and a failed breakdown reversal begin around 11-11:30.
At this point bull puts could be taken, especially after the recalim of the peach line at 509.65. They key to recognizing this is to wait for the first hour to complete, then look for a double bottom/ failed breakdown on the second dip. The reclaim of the 409.65 level was simply the confirmation. One can then take 510c targeting 512.50.
That is essentially the work as a THT trader. Plan, position, and then let it work or not.
I ended up making a couple of other yolo trade attempts in case we got an end of day rally but those all lost.
Overall the price action on Friday felt like accumulation ahead of a posible gap up and go on Monday.
Trade Ideas - Plan for Monday May 6
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.
This week is light on economic data and the majority of names have reported. At this point I am starting to look at dips for swing long into next quarter as long as SPY holds over 508.
AMD and MSFT on dips ar attractive. I’m kicking myself for not accumulating MSFT at 390. I remember seeing it and thinking it was dump not buy at 390. AMD I had alerted starting swings at 145, and wanted to accumulate down to 135-137 for major size. That plan remains.
AMD got an upgrade today, so ideally it gets a gap fill to join longs and seems the most oversold of the SEMI bunch.
CVNA, I’m hawking for volume for it to begin the next leg higher, but I would like a dip into 108 to take a 2-3 month long swing for 150-170
Earnings this week we have: UPST 0.00%↑ CELH 0.00%↑ PLTR 0.00%↑ DIS 0.00%↑ RDDT 0.00%↑
BTC is back at 64k. as long as 60k can hold hawking dip buys on COIN, and MSTR.
COIN sub 220, and MSTR sub 1200
Let’s get into the levels and ideas for today