Does SPY take a breather today? SMCI to be added to SPX. My plan for Monday Mar 4.
SPX5120c hits $20 from $2 entry
Good morning traders.
Gappers this morning:
TSLA back under 200.
NVDA gapping up $15
SMCI gapping up $120 on SPY500 inclusion.
Fear and Greed Index continues to sit at 79.
Lately wednesday through friday have been providing the big pay days, while Monday and Tuesday have been consolidation days. Let’s see if this pattern continues.
Read on for my review of Friday’s action and my plan 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, 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.
Mar 1 - SPX 5120c Entry $2 - High after $20 ($2000 —> $20000 potential)
Feb 29 - SPX 5095c Entry 0.50 - High after $10 ($500 —> $10000 potential)
Feb 29 - SPX 5100c Entry 0.30 - High after $5+ ($300 —> $5000 potential)
Feb 27 - TSLA 195p Entry 0.90 - High after $2.30+ ($900 —> $2300 potential)
Feb 26 - SPX 5070p Entry 0.20 - High after $2. ($200 —> $2000 potential)
Feb 23 - NVDA 800p Entry 2.50 - High after $25.11 ($3000 → $25110 potential)
**Dipped to 2.57 (had to chase entry 3)
Feb 23 - NVDA 820c Entry 2.25 (swing from Thursday) - High after $25.00 ($2250 → $25000 potential)
Feb 22 - SPX 4090c Entry $2.50 - High after $9.20 ($2500 → $9200 potential)
Feb 16 - SMCI 1000p Entry $11 - High after $195 ($1100 → $19500 potential)
Feb 15 - TSLA 195c. Entry $1.20 - High after 5.95 ($1200 → $5950 potential)
Feb 14 - NVDA 720p. Entry $4.5 - High after $12 ($4500 → $12000 potential)
Feb 13 - SPX 4955p. Entry $5 - High after $34 ($5000 → $34000 potential)
Feb 12 - ARM 180c. Entry $1.20 - High after $14.10 ($1200 → $14000 potential)
Feb08 - ARM 100c. Entry $5 - High after $27.50. ($5000 → $27500 potential)
Feb07 - TSLA 185c. Entry $2.53 - Hight after $5.60 ($2530 —> $5600 potential)
Feb05 - SPX 4940c. Entry $3 - High after $16.60 ($3000 → $16,600 potential)
Feb02 - AMD 180c. Entry 0.15 - High after $1 ($1500 —> $10000 potential)
Jan 29 - SPX 4910c. Entry $1 - High after $20 ($1000 —> $20000 potential)
Jan 26 - NFLX 570c. Entry $0.50 - High after $9.85 ($500 → $9850 potential)
Jan 25 - TSLA 185p. Entry $1.5 - High after $6.3 ($1500 → $6300 potential)
Jan 24 - SPX 4890p Entry $1.50 - High after $22 ($1500 → $22000 potential)
Jan 24 - SPX 4880p Entry $0.50 - High after $12 ($500 → $6000 potential)
Jan 17 - SPX 4740c Entry $0.20 - High after $2.80 ($200→ $2800 potential)
Jan 17 - SPX 4740c Entry $1.20 - High after $12 ($1200→ $12000 potential)
**Past Performance is not indicative of future results
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
The price action in SPY was pretty clean. I was expecting $10 to 26 as exits for $SPX 5120c. So the job was to look for the failed breakdown reversal entry.
Can you see the failed breakdown signal above?
I shared my Round 1 plan as:
Round 1 gave me T1 and T2 exits. I then got stopped on my runner at 3.50. After watching the dip and see it bounce, I reloaded at 3.7 and then adjusted my sell targets to 7.20, 10, and 12.
Then leave runners for 20+. Unfortunately once it hit 14, I raised stops to 12. I was too aggressive on the stop move and missed out on the run to $20. I should have raised the stop to 10.20 by using the previous low.
Overall solid work. I look at runners at bonus pay and my core goal every is to collect 300-500% vs my risk. and 100-300% on face value. On this metric. Mission Accomplished!
CRM
Based on the price action from Thursday, I was targeting 315 to 320 on Friday to come. Our scoops for $1.20 hit over $8 on Friday. I normally look to trade and exit same day, but finding momo swing holds for 2 to 3 days can be big payers.
DELL
The plan to short the opening was perfeect. One could enter on 128 after the initial rejection of 130 or waited for the close under vwap and then take 120p or 117p targeting 113. I was off on where support would come. it came at 117 and not 113, but by being systematic with profit taking one can extract profits consistently.
I was super excited to see a member follow the process and how Edge created a trade plan that was almost identical to the member’s actual trade.
Summary Review of Market Price Action
Overall shorts got trapped and BTFD action continued on Friday. If anything market could now being triggering FOMO buying and people don’t want to miss a run to 550+ on SPY. Chips continue
Educational Lessons
From the price action review you should have learned the following:
Wait for the levels to plan trades
Use /plan in Edge Trade Planner to quickly create trade plans.
Use Edge Trade Planner’s scanner to find trades.
Focusing on consistently extract profits vs focusing on targets can allow multiple trades and taking profit out of the market even when wrong.
Trade Ideas - Plan for Monday Mar 4
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.
SMCI may have trapped shorts again, the question is the hold above 1000 or not and /or a clearance of 1070.
Depending on timing a 5 to 10x trade on SMCI should develop later in the week. Contracts will likely be super juiced so I don’t know if there will be a trade here.
I’ll be focused on AAPL, NVDA, SMCI and maybe SPY
Read on for my thoughts/plan for today.