SPY 600 is almost here. What's next? Trade Ideas for Wed Jun 4
How I read yesterday's action to plan and secure over 300% profit in 0DTE SPX
On Monday I wrote, if 591 clears to scale up long and last week I talked about how a clearance of 592 triggers 596-600 to come. Yesterday I wrote that “If I’m write about what is coming, I thinking 610 will come before a drop to 500”. All of those pieces are coming together.
I didn’t want to go long above 592 in case of another faker move… But I did… Why? You read that I was hesitant, but what got me to go long? Did fear stop you from taking action?
In today’s blog I’ll review my thinking, logic and show you the exact patterns and process I used to secure over 300% profit in under 2 hours!
SPY / SPX
IDEA: 593+ push with 592 backtest
Yesterday I wrote bull case: if 593+ push comes followed by 592.50 turning into support.
During the first hour we had consolidation. 593.20-30 was resistance. We got a sudden dump under 592.50 which was quickly reclaimed.
This has significant meaning and it was the EXACT behavior I predicted in premarket. Significant because:
High volume into the dip
Followed by reclaim of vwap and grind above the 9 and 20 ma.
Once the triple top high was cleared that was where the upside confirmation was signalled. However as a general rule, I like to wait for the ned of the first hour. I actually took a short into the 10:30am spike in case we got a sudden reversal. But as planned I stopped out break even on it.
I was a little late as I waited for more confirmation but by 10:50-11 I did the math and targeting and chose SPX 5880 calls as my profit vehicle. Looking back on the review I could have got in for $1 to 1.25. But that is OK. I got in at 1.50 giving it $1 for a stop with a final target of $10+
I then used Edge Trade Planner to set my sell targets with a plan to be out 80% of my position at T2.
If you aren’t able to hold for the targets, change you mindset and stop looking at the charts each minute. I tend to sell 50% at 100% gain to make it risk/free and then let the runners go for the targets. That said, if I see consolidation, and that the targets are coming, I will add back 50-100% of the sells. and adjust to sell 50% at T1. and 30% at T2.
Bottom line. Ask yourself. Are you willing to risk $1 to make $3-5? If so… Take the trade as a bracket order and walk away.
Let’s get more into the details. How did I target 5990 and a $10+ exit. It’s simple. I use my levels and count 2 levels up from the current price. That’s it. Will it work all the time? NO. Does my process protect me if I’m wrong. Absolutely. So Trade and plan with the expectations you will win.
I didn’t get 5990, nor my 11.50 target for T3. but my process allowed me to secure over 300% profit/ gains. Not bad for a couple of hours of being in a position and about 15-30 minutes of monitoring and analysis.
This was my main trade yesterday.
I wanted to short HIMS but missed the entry, and I wanted to long CRWV but thought I was chasing. ITS 100% ok to miss the trades. I didn’t properly chart and plan those and so its a GREAT reason to have missed the 500 and 700% gainer trades on those vs getting in on a whim. Think about that…. Winning big without proper planning eventually leads to demise.
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.
Finally I’m starting to do something new and share /ES futures ideas to capture overnight moves.
I alerted I like entries on /ES at 5910-5922 risking vs 5905 targeting 5950+. on Monday. I’m still in runners with target of 6000-6020 and stops at 5960.
Thoughts from Tuesday’s price action:
Market is continues to be in consolidation mode and dips are still being bought.
We are breaking out of 3 weeks of consolidation.
Entering after 11am continues to pay big.
Held overnight longs with expectation of gap up.
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.
I’m out of time, but I’ll make a video on this later.
Trade Ideas - Plan for Wed Jun 04
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
Yesterday SPY gave a perfect continuation of the break out that started on Monday. This morning we were setup to gap up but as of right now we are back near the close.
We saw HIMS give up its gains, and CRWV rise an amazing 24%!!! This was just $40 and now $160!
With SPY on the verge of testing 600 here is what I’m watching…