Is the TOP in? SPY drops 7 points after making new high? Trade Ideas for Thu Jun 12
What's stopping you from making 500-1000%? Stop overtrading, and make more in less time. Read on to learn how I do it.
Another amazing day yesterday!!!! Patience paid! I’m not talking patience for sitting in a trade, I’m talking patience for entry into a trade.
SPY / SPX
IDEA: SPY will not reach 608+
Did you know that at interactive brokers you cant trade SPX in premarket?
After the CPI news was release SPY rallied to 605-606 area. I took advantage of the IV spike and alerted SPX 6095/6100p bear calls for $1. These dropped to 0.20 in the morning and closed at 0. I call it a free money trade!
IDEA: SPY will not reach 606.50 quickly after failed breakdown reversal
I got overly excite after seeing the failed breakdown that we would catch a big spike in SPX 6070c. So grabbed it at $3. then after emotions settled, I ran the math and thought, wow the opportunity is only $4 and I’m risking $3.. That’s a shitty trade. I followed with an alert that I cut it taking a 0.30 profit and I was super happy to.
LESSON: I saw that it could continue, and sure I could have sold it for 4.80. But I recognized that I didn’t think $7 was going to come without difficulty and there likely would be a drop back under 3. Which came and then it pushed to 4.80.
After a day of two 10 baggers. My energy and mental capital is NOT worth being spent for a 100% gainer trade.
So I told members I’ll be back at 11 and see where we are at.
IDEA: 605 and 10:30am REJECT downside coming target 601
I saw that the 10:30am level was rejecting and started a short and then got stopped out just before it started the drop. At this point I recognized I was being antsy and told members I’d be back for afternoon trades. “I’m taking a nap”
You’ll notice I missed the reshort on 604 back test
The SPX 6030p idea would have paid nicely as it reached $12 from $3 on the short idea. I’m ok I missed this.
Rest and the nap paid off!
IDEA: 598-600 coming.
Came back after 1pm and saw the dip and rip over lunch… but is was push into 604 and failing…
I alerted taking 6030p for $3 again. And this time it was glorious!
The above trade was my MISSION ACCOMPLISHED TRADE.
Was out at 20. reload at 12 and 18. holding for 40.. It hit 31. and got stopped at 22. That’ ok. I looked at the next leg as bonus and was 1000% happy with 3→20!!
Guys. This is what I want. I spent time resting. getting mental clarity. and then wait for the action to setup and confirm a thesis.
In the current environment, you spend 30-90 minutes hawking the trade and 30 minutes getting paid! time from entry at $3 to $20 was 17 minutes!
I need to get back to work on my algos so they can alert me to come look at 13:30-13:40 when it sees the trade setting up so I don’t need to spend time watching for it. :)
There is massive opportunity in this market. Are you taking advantage? Literally have planned and alerted trades that pay over 500%! 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.
Thoughts from Wednesday’s price action:
Nice profit taking day.
598 should provide a bounce opportunity
Buying seems exhausted near term at the highs.
604 needs to reclaim fast for the rally to continue
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 Thu Jun 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
We are getting a lot of mid day rangy trades now so I will be waiting till after 11am and maybe after 1pm before opening trades. Why? Biggest after review my trades, that is when I see my highest percentage gains!
I’m not satisfied with 100% gainers. I want 300-1000% opportunities that pay within 30-60 minutes. That opportunity will change, but while the market is giving it, I want my mental energy devoted to that!
Here is my rough thoughts for today. A lot of it will be price action dependent. Use the major levels as a guide…