Market consolidates yesterday. Does it break range today? Trade ideas for Thursday May 9
ABNB and ARM drop, while NFLX has been on a tear.
Good morning traders!
Yesterday I said I wanted to get long for some gap fill in TSLA and in SPY and buying the dip near the open was rewarded. I told THT members I was looking to get short after 11, and that was good planning. Once that fill happened, I focused on selling bear calls.
After this it became a bit of a chopfest all afternoon. I was able to plan and longs and shorts but we didn’t get any real trend and most we got contracts bleeding out.
Looking over the market in premarket, I don’t have a strong read of what happens today. In theory we get a flush, but the BTFD action has been strong. It would be healthy to get a back test into SPT 512.50 or so before grinding higher but who knows if that comes. So overall stick to process. Let range be set after first hour or two and then make plans unless we get strong trending volume.
Let’s get into the review and then into ideas 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.
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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.
May 8 - SPX 5200/5205 bear calls $1.20 —> ($1200 premium potential)
May 8 - SPX 5190/5195 bear calls $1.50 —> ($1500 premium potential)
May 8 - SPX 5180c $4 —> ($400—> $1100 potential)
May 7 - SPX 5190c $1 —> ($1000—> $4000 potential)
May 7 - SPX 5190c $1 —> ($1000—> $4000 potential)
May 7 - DIS 105p $0.40 —> ($400—> $1600 potential)
May 6 - SPX 5170c $3 —> ($300—> $1100 potential)
May 6 - SPX 5175c $0.40 —> ($400 —>$7000 potential)
May 3 - SPX 5150/5155 bear calls $1.50 —> ($1500 premium potential)
May 2 - SPX 5020p $7 —> ($700 → $2180 potential)
May 2 - SPX 5070c $1.20 —> ($1500 → $7200 potential)
May 2 - SPX 5070c $3—> ($3000 → $7200 potential)
Apr 30 - SPX 5080p $3 —> ($3000 → $45000 potential)
Apr 23 - SPX 5060/5055 bull puts - Entry $1.75 ($1750 premium potential) drawdown < $200
Apr 22 - SPX 5050c swing - $5.50 → ($5500 → $42000 potential)
Apr 22 - SPX 5000c - $3.20 → ($3200 → $39000 potential)
Apr 22 - SPX 5020c - $0.20 alert, dipped to 0.55, fill at $0.70 → ($700 → $20000 potential)
Apr 19 - SMCI 750p - $1.50 → ($1500 → $38k+ potential)
Apr 19 - NVDA 800p - Entry $0.5 ($500→$40k potential)
Apr 18 - SPX 5050c - Entry $6 ($6000→$16000 potential)
Apr 18 - SPX 5020p - Entry $4 ($5000→$20000 potential)
Apr 16 - SPX 5140/5135 bull puts - Entry $2.50 ($2500 premium potential) drawdown < $300
Apr 12 - SPX 5100p $1. (dipped to 1.30) - Entry $2 ($2500 premium potential)
Apr 11 - SPX 5180/5185 bear calls - Entry $2.50 ($2500 premium potential)
Apr 10 - SPX 5180/5185 bear calls - Entry $2.50 ($2500 premium potential)
Apr 10 - SPX 5170c - Entry 0.50 ($500 → $5000 potential)
Apr 9 - SPX 5185/5180 bull puts - Entry $3 ($3000 premium potential)
Apr 9 - SPX 5205c - Entry $0.50 ($500→ $6000 potential)
Apr 8 - SPX 5225/5230 bear calls - Entry $1.20 ($1200 premium potential)
Apr 8 - SPX 5200/5195 bear puts - Entry $0.10 ($1000→ $8000 potential)
Apr 4 - SPX 5250p - Entry $4 ($4000→ $100k potential)
Apr 4 - SPX 5180p - Entry $1.30 ($1300 > $32k potential)
Apr 3 - SPX 5175/5170 bull put - Entry $1.50 ($1500 premium potential)
Apr 2 - SPX 5175/5170 bull put - Entry $1.50 ($1500 premium potential)
Apr 2 - SPX 5205/5200 bull put - Entry $1.50 ($1500 premium potential)
**Past Performance is not indicative of future results
For live alerts and market commentary click the button below.
Wednesday 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
In premarket we got the 515 level test and a quick dip and rally started trigger a run for the first hour and getting the gap fill I wanted. We then were able to get short on the double top and then had to wait. Lock some in per plans on the flushes, but the dips under vwap kept getting bought. After the 3rd dip after lunch seeing 516.20 hold, I became convince we would retest 517.30 and maybe high of day and that is more or less what happened.
Overall the action was super low volume and it was very easy to get chopped up. I did a couple of times.
TSLA
Given the amount of gap down, I shared this plan with THT members early.
And that is exactly what we got. The 175c from 1.50 ran to $3.20
That is all we needed to do. There is no need to trade all day. We also were able to take puts in META and NFLX off the highs, but the payouts were crap . maybe 50% gains only.
We took NFLX 610p for $3 that hit 5.
We took META from $3 that hit 4.50.
Trade Ideas - Plan for Wed May 8
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.
Crypto name swing ideas
BTC is back at 61k. as long as 60k can hold hawking dip buys on COIN, and MSTR.
I am starting to hawk COIN under 220 for support to form and MSTR sub 1200 for the same.
Ideas
Today I’m focused on TSLA, NFLX, and SPY but we also have ARM and ABNB for possible trades
TSLA will watch for trend to form. Yesterday the dip was bought but I like over 176 for possible short. Seems like too many headwinds to keep a rally going.
NFLX been on an insane tear. Would like to catch a corrective leg short.
ARM guidance wasn’t what investors were hoping for. Is it time to BTFD though?
ABNB guidance was also disappointing.
Let’s get into the levels I’ll be looking at for opportunities.