How will SPY react to CPI?! INTC idea yields 300% will it give 1000%+ Trade Ideas for Tue Aug 12
We had beautiful clean setups for the short side yesterday, but the problem was me. Learn from my mistakes in today's blog. ALSO INTC idea was perfect!!! did you lock some in for 200%+ gains?
Good morning!
Got a lot to review. I did ok yesterday, but could have performed so much better.
That said INTC idea was perfect!!! did you scoop it on the cheap and sell some for 200-300% gains to make it risk free?
SPY/SPX
Morning Setup 1: ORB 60 Low Failed Breakdown Reversal
I wasn’t convinced on how much move we would get until I was hod break. Then I was thinking we would get 639.40. But in stead we got a failed breakout!
The clue was that the we move volume into the highs than at the lows!
After Lunch Setup 1: Failed Breakout Reversal with all pops sold
SPY couldn’t hold over 638.60. that is also where it struggled on previous days.
After lunch SPY broke under vwap and it got heavy. every pop was met with selling.
I tried a couple of small long thinking we were in for a chop day and move back over vwap but fortunately and kept it small with tight stops. Since I was trying to catch a reversal and upside wasn’t confirmed.
I finally said to THT PRO members I think 635 can come if we break 636.20 so I like SPX 6375p for 1.50 to get positioned for that flush.
You can see how 1.50 was perfect.. we got dips there twice. on first flush reached 7. on second dump in 635 we got $10!!!
I was overall exhausted by the time the second dump came and so didn’t take the reload. at 1.20. I saw volume come in and chased at 4 and sold at 7 and 10 for quick 100% gainer and then I was truly done. The only reason i took this trade was give the failed breakout, there was a small chance we could got a massive sell off ahead of CPI today.
Now here is the thing that is clutch. I love SPY/SPX long into that dump and took /ES long with 10 pt stop thinking we could 30-50points of upside today.
Why long? review the massive volume that came in on the lows followed by the push into vwap!
INTC
Yesterday I wrote that I wanted to yolo INTC 22c for 0.10
Here is what they did.
They opened at 0.10 and ran to 0.45. Today INTC is gapping up. Not sure how far it will run given there really wasn’t a deal from Trump’s meeting. I’ll be exiting at the open. It can run without me. My thesis didn’t play out.
Remember I always like to sell at 300-500% gains. at least 50%. that is always solid work and it makes it risk free!
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 Tue Aug 12
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
OK so here is what I’m looking for. Overall I’d like to see some gap fill first and then support established after 10:30-11 and then scoop some swing long.
Ahead this week we have CPI numbers which should give us some action to make trade off of.
Finally I wonder if a certain company meeting with Trump this week strikes a deal. if it does it could move like AAPL and NVDA did…