How will market react to FOMC today? Trade ideas for Wed Jul 30
Very rangy action yesterday. Multiple 100% gain trade chance plus a 500% payer!
Good morning! Today is the big day or maybe a pinned day. The market can do anything with FOMC decision at 2pm.
On days like this I have a pretty clear process. I usually will trade first couple of hours and then walk away until 2:30pm maybe 2:45pm. Why? That usually lets me avoid getting caught in traps. Also maybe trade 20-50% of regular size so as to not get stopped out of rangy fast moves with reversals.
There is no reason to let FOMC related volatility ruin your account. DONT LET GREED and hope for banking trigger bad behaviors. Instead approach this systematically.
My initial thoughts yesterday were that they would do a gap fill and then rally and then afternoon profit taking… Instead there was pretty much all day profit taking after filling the gap.
Here were the plays.
SPY/SPX
Morning Setup: GAP UP REVERSAL
Unfortunately I was sick and while I alerted I was hawking 6380p and 6370p my execution and alerting could have been much better. Sorry THT PRO members. Hopefully do much better today.
Also I’m hearing from members that some are using the levels with futures and are doing better without having to worry about theta decay. Let me know would you like me to focus more on /ES?
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.
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 30
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
Today should bring some range and volatility. I’ll be looking for either failed breakdowns or breakout for trade entries after periods of consolidation. Otherwise will stay out of market until 2:45pm. (after powell speaks and market settles down)