Is SPY exhausted or gearing up for new highs - Trade ideas for Wed Oct 23, 2024
Are you planning trades that pay as much as 5 to 20 times your risk? If not, join THT-PRO.
Good morning traders!
Yesterday morning was super annoying to me and I was exhausted after working on algo most of the night. Why annoying? I was looking for a long trade in morning and volume wasn’t coming in and then I overslept result in missing out on a 10x trade by oversleeping 20 minutes. Annoying but not the end of the world. Why? I knew there would be another trade setting up.
I wasn’t going to chase it so I waited for the dip. I told THT PRO members we should get a 100-200% payer. SPX 5850c just hit $12+ and was coming back down. I told members I’m looking for a long around $2-4. The contracts dipped to 2.50 and then ran to 11. For me $3→$9 was good enough. A 200% high probably trade/winner. I told members I don’t trust moves over 584 and sure enough SPY tanked into 583.30 at the close.
THT PRO members have learned how I trade used my morning plan as a guide to enter SPX calls in the afternoon without me alerting it for a second attempt!!! I’m so proud of you guys!
Tuesday’s Price Action
SPY dipped and ripped right off the 581 level making its way to a mini squeeze after gap fill in the afternoon. The biggest challenge, it took all day. The morning action was garbage to profit on. So we shoot our shots, stop out flat and then wait for after lunch.
NVDA consolidated
MSTR consolidated
META - almost reached that 585 target got to 583
MMM - sold off, went red and dropped 2 levels
SAP - sold off, filling most of the gap
Overall I look at this action as consolidation behavior with possible toppy behavior. Watch for more consolidation, and for possible support break in coming days.
Wednesday Premarket Action
A number of names are gapping down this morning. Dollar ripped last night as world leaders are meeting for BRICS which could alter the economic landscape for America. What happens if oil is no longer priced in dollars? US Debt cost should climb and inflation could go up as dollar buying power drops. Macro stuff, nothing us day traders need worry about, but initial market knee jerk reactions can happen and so I want you prepared for news.
SPY tested 583.30 close over night and is gapping down into 581s. look out below if 580 breaks and bidders don’t show up.
NVDA all dips continue to get bought ahead of e/r next month.
MCD gapping down on Ecoli
ENPH gapping down after downbeat e/r - do we see sub 70 today?
TXN better than expected results and a gap up after initial dips. — Can it hold the gap?
SBUX suspended guidance and is gapping down.
Overall we have a mixed bag on the e/r week kick off.
Let’s review the trade signals in SPY and go over ideas for today.
Join THT PRO to get alerts, real-time commentary, and improve trading habits.
Introduction (for New Readers)
Welcome to my blog on Two Hour Trading—your daily source for market insights and trading opportunities. Here, you’ll find comprehensive market analysis, educational lessons, and trade ideas to help you excel in trading, all while spending less than two hours a day.
What Subscribers Get
Subscribers receive daily market analysis updates, educational content, and up to three trade ideas each morning based on real-life examples and my trading approach.
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?
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
2024 Q4 Alert Leaderboard
Here's a look at some of the potential gains achieved through our entry alerts:
Oct 22 - SPX 5850c $3 (dipped to 1) ran to $14.80 on Round 1 ($3000 → $14800 potential)
Oct 22 - SPX 5850c $3 ran to $11 on Round 2 ($3000 → $11000 potential)
Oct 21 - SPX 5850c $1.50 ran to $5.6 on Round 1 ($1500 → $5600 potential)
Oct 21 - SPX 5850c $0.45 ran to $4.8 on Round 2 ($450 → $4800 potential)
Oct 21 - NFLX 775c $4 ran to $9.52 ($4000 → $9520 potential)
Oct 18- MSTR 210c $1 → $8.50 ($1000 —> $8500 potential)
Oct 17 - NFLX 705 commons buy after earning earnings. Exit 761. $56 Dollars!
Oct 17- SPX 5870c $1.80 → $7 ($1800 —> $7000 potential)
Oct 15- SPX 5800p $2.20 → $5.50 ($2200 —> $5500 potential)
Oct 15 - SMCI 50c $0.60→ $1.85 ($600 —> $1850 potential)
Oct 15 - SPX 5830c $4 → $18 ($4000 —> $18000 potential)
Oct 14 - SPX 5870c $0.45 → $4.4 ($450 —> $4400 potential)
Oct 14 - MSTR 210p 4.50 →$13.7 ($4500 → 13700 potential)
Oct 14 - PDD 135p(swing) 1.50 → $12 ($1500 → $12000 potential)
Oct 11 - SPX 5810c $5 → $14 ($5000 —> $14000 potential)
Oct 11 - SPX 5805p $1 → $13.50 ($1000 —> $13500 potential)
Oct 10 - SPX 5800c $2 → $6 ($2000 —> $6000 potential)
Oct 10 - SPX 5750p $0.50 → $3.40 ($500 —> $3400 potential)
Oct 09 - SPX 5775c $2.5 (thanks JY!) → $22 ($2500 —> $22000 potential)
Oct 09 - SPX 5800c $0.5 (dipped 0.20) → $2.45 ($500 —> $2450 potential)
Oct 09 - SPX 5790c $1 (dipped 0.70) → $8.65 ($1000 —> $8650 potential)
Oct 09 - SPX 5790c Round 2 $3.5 → $7.5 ($3500 —> $7500 potential)
Oct 08 - SPX 5750c $1 (dipped 0.70) → $2.30 ($1000 —> $8400 potential)
Oct 08 - SPX 5750c $2 (dipped 1.70) → $8.40 ($2000 —> $8400 potential)
Oct 08 - MSFT 415c $3 risk 0.20 —> 4.10 ($3000 → $4100) 5R!
Oct 07 - SPX 5720c $1 (dipped 1.20) → $3.30 ($1200 —> $3300 potential)
Oct 07 - SPX 5690p $1.50 (dipped 1.55) → $10.50 ($1550 —> $10500 potential)
Oct 07 - PDD 145p $2.35 (swing) → 5
Oct 04 - SPX 5700p $5 → $15.50 ($5000 —> $15500 potential)
Oct 04 - SPX 5730c $6 → $23.90 ($6000 —> $23900 potential)
Oct 04 - SPX 5740c $1.50 → $14 ($1500 —> $14000 potential)
Oct 04 - SPX 5750c $1 → $5 ($1000 —> $5000 potential)
Oct 04 - OXY 55c $0.35 → $0.80 ($3500 —> $8000 potential)
Oct 04 - META 595c $0.12 → 1.90 ($1200 —> $19000 potential)
Oct 03 - SPX 5655p $1 → $5 ($1000 —> $5000 potential)
Oct 03 - SPX 5690c $2 → $14.20($2000 → $14200 potential)
Oct 03 - SPX 5695c $1-2 → $9.80 ($1500 → $9800 potential)
Oct 03 - NVDA 125c $0.55 (swing)
Oct 03 - XOM 123c $0.22 (swing)
Oct 03 - OXY 55c $0.33 (swing)
Oct 03 - PDD 155c $1.20 (swing)
Oct 03 - SPX 5720/25 bear calls $2 —> 0 (risk $500 to collect $2000 premium)
Oct 02 - SPX 5700p $2.50 → $8.50 ($2500 —> $8500 potential)
Oct 02 - SPX 5720/25 bear calls $2.50 —> 0 (risk $500 to collect $2500 premium)
Oct 01 - SPX 5720p $3 → $12 ($3000 —> $12000 potential)
**Past Performance is not indicative of future results
For live alerts and market commentary click the button below.
Trade Recap for Tuesday Oct 22
GOLD BOLD ITALIC = price action signal
GOLD REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
Sometimes with 0DTE, even being right doesn’t work if you don’t get the move in the time your wont. our 5850c decayed over 50% before going, so before that happened I cut the trade when I saw the contracts struggling to catch a bid near the highs in the morning. The one thing I could have done better is place a reload order at $1, because with a $13-18 sell potential it would have been worth it.
Thankfully THT PRO members learn how to read price action and make great risk/reward bets!
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/failed breakdown reversal
Join at vwap mid day or end of day
Keep it simple. Don’t chase, wait for support levels for great risk/reward entries!
Education - 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.
Let me know in the comments if you have questions or would like to see examples, I’ll share them.
Trade Ideas - Plan for Wed Oct 23
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
I think we are still in sideways consolidation mode but if 580 breaks we could see some downside but I’m not expecting much deeper the 575 at this point. Until 585 becomes support, I think 584s on SPY can be a sell zone.
Be sure to read this post in preparation for action this week ahead of elections.
Let’s go over the ideas…