Market gapping up ahead of Powell testimony. Do we see 560 this week? Trade ideas for Tuesday July 9, 2024.
Market gapping up ahead of Powell testimony. Do we see 560 this week? Trade ideas for Tuesday July 9, 2024.
How do you join a strong trend already in process. Read today's blog for how I do it.
Good morning traders!
Given the price action from Friday, and Powell testimony coming today, I wasn’t expecting large multibag gains today unless some sort of profit taking triggered. I chose to look for our standard “base” hits that many consider well don trades. What do I mean by that? I want to lock in majority or all gains at 3-5R. or 3-5x whatever my risk is. This creates high probability account growth and is perfect for potential consolidation days.
Monday’s Recap and Trade Ideas for Today
Let’s review Mondays trades and explore some ideas for today. We had 3/3 trades yield 3R or better!
Struggling?
Take time to review past blog posts and learn the processes and core trade setups I use. Patience is crucial. Don’t force trades; enter only at or near key levels with enough range to the next level to offer a great risk/reward opportunity.
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.
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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 Alert Leaderboard
Here's a look at some of the potential gains achieved through our entry alerts:
July 08 - AVGO 1800c 13( $1300—> $2250 potential)
July 08 - SPX 5560p 2.50 stops 2.30 ( $2500—> $5000 potential)
July 08 - TSLA 270c 4.50 target 7.50 ( $4500—> $7600 potential)
July 03 - SPX 5520 2.5 ($2500—> $18000 potential)
July 02 - TSLA 225c 3.5 ($3500—> $8500 potential)
July 02 - SPX 5500c 2.50 ($2500 —> $10000 potential)
July 02 - SPX 5470 Bull Puts 2.50 ($2500 credit collected)
July 01 - closed TSLA Swing $2.65—> $12.00
**Past Performance is not indicative of future results
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Monday’s 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!
Please note all times are Eastern/New York regardless of what time zone I happen to be in.
SPY / SPX
I was looking for gap fill or possible red today in case of derisking ahead of powell so was looking for action to enter for downside targeting 5558 or less on SPX. Given that thesis. Taking early credit sells worked out for a bleed out all day. We then wait. you can see 5577 break, and the a back test of the wicks at 5576 and the 10:30 level to be established to allow us to take 5560p. Given the 5558 target, we want to take profit early since paying 2.50 with 0.20 risk. So we type /plan b SPX 5560p 2.50 s 2.30 into edge trade planner and it gave us this:
Guess, what. All targets hit! Actually got to 5, but I’m not worried about that. I place the sell orders per plan and my success is defined by collecting “stress free” pay checks without watching each candle. I either lose $200 or make $1000+ net per 10 contracts.
Please review the options charts and the trade setups.
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!
Trade Ideas - Plan for Tuesday July 9
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
Powell speaks at 10am today at tomorrow and Thursday we have CPI data and Friday PPI data. So the question is will the market continue its rally into these news driven risks. Overall I will continue to BTFD at support [method 1 entry] or after failed breakdown reversal [method 2 entry].
I also look for any 2-4 level moves up for a scalp short.