Market discards Moody's downgrade. Spectre Special gets 600%. Trade Ideas for Tuesday May 20
Failed Breakdown Reversal Strikes Pay Dirt AGAIN. Do you know how to plan trades using my levels? UNH continues to pay
This is a resend of Friday after market blog with updates.
Top Trades from Monday May 19
SPY / SPX
Yesterday I wrote I wanted to short off 592 .. a net bullish bias at the open for some gap fill before trying shorts.
Idea: SPX 5920c $7 target $25-35
Trigger: VWAP hold after 587 reclaim target 592-593
SPY and dipped to 586, but reclaimed 587 and was holding VWAP. My plan was to go short at 592-593 so why not get long assuming we get some gap fill. So using vwap as my guide I started in long.
While I did alert that I expected 592 to come, and was waiting for that as a short, I should have alerted to members I had scooped SPX 5920c in premarket. Sorry guys.
I also didn’t realize we could have scooped SPX 5950c for $2. That would have been a great risk reward! These reached over $10!
Idea: SPX 5930p $4.5 target $30+ (starter) add full size under vwap
Trigger: failed breakout reversal of 593.50 (1 point lower than previous high)
We had a lower high on RSI + SPY made a new high. I alerted to members that I was looking for a failed push on 593.50 since I have noticed that selling in the past would sometimes trigger trigger $1 below previous day high. So I took a short saying I will stay in this as long we stay under 593.30. Well 593.30 was claimed again I cut the trade for a small loss.
This also prepared me to go long again.
Idea: SPX 5970c $2.5 target $5-10+ at 595.80, and 30+ if 599-600 came.
Trigger: failed breakout reversal of 592 + if we go green , short squeeze into 595.80+ cross of 592 coming.
I took/alerted SPX 5970c at 2.50 setting a sell order for 50% at 7.50 (since that is 200% gain). Stopped 30% more at 6 and the rest at 4.
Earlier in the morning I also mentioned to THT PRO members there was a chance that the action today develops into a failed breakdown reversal and squeeze. I wasn’t sure it would develop but sure enough it did and it paid out nicely!
Idea: Spectre Special SPX 5960c 0.50 closed 3.59
Scooped this for the close. I was try to get 5950 and 5955 but it kept missing my scoop entries. those went on to do 300-500%.
In the last 5 minutes I got filled. Sold 50% at 1.50-2 to pay for the risk and a short position I also took for the close. Then it was do or die. Well we got DO! with a close of 3.59. That is a 600% payout in 5 minutes!
UNH
Yesterday morning I wrote I want to add to 300c on dips. I unfortunately missed that but alerted I was taking 320c for $6 ( should have been in under 5 but was “late” jumping in)
Idea: UNH 320c $6 target $12+ (swing)
Trigger: morning support established and will break out over morning highs
Remember I have a 320-340 target on UNH this week so why not add to our 300c position?
I’ll likely sell 80% today.
Reminder to THT PRO members: When you see me take multiple strikes and a swing, it a high conviction trade.
Do you want to our next Failed Breakdown Reversal Alert? Come trade with us. Warning. We aren’t cheap, but neither are our returns. Don’t settle for 15% gains over days when we find trades that pay 50 to 500% or more in under 2 hours!
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.
Trade Ideas - Plan for Tues May 20
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
SPY grind is relentless. It is shaking of bad news like it’s nothing. Every gap down has been bought! So until something changes, our focus has to be on BTFD plays and failed breakdown plays for going long. Only going short when key levels break or toward fast spikes and taking profit at 50-200% gains, or using Bear Calls into major resistance points.
Given we are near highs, my focus will be to look for names near support for a run or names like QBTS which have news catalysts and volume.