SPY breaks support and flushes 4 levels to 555.70. How will market reaction to PPI today? Trade ideas for Friday July 12, 2024.
Good morning traders!
Yesterday SPY broke the 561 level I wrote about in yesterday’s SPY idea:
I was targeting a 3 level move down, but SPY’s relentless selling more or levels reversed the gains from Wednesday and dropped 4 levels! Overall I expect today to be a small chop relief bounce today, but if we break yesterday’s lows, we could see much more red in SPY as money rotates.
Thursday’s Recap and Trade Ideas for Today
Let’s review Thursday’s trades and explore some ideas for today. There were so many great trades in the morning. Thanks to TSLA, the afternoon became very fun!
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.
What Subscribers Get
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 11 - SPX 5600p $2. reached $23! ($2000 —> $23000 potential)
July 09 - Credit Sell SPX 5590/5595 bear calls 2.30-2.50 stops at 2.60 ( $2500 premium collected per 5k position risking $300)
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
For live alerts and market commentary click the button below.
Thursday’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
Yesterday the 561 major support broke. I alerted I took puts on the 561 break.
The 5620 puts I could level all day while I took profits on 5600p more aggressively incase a bounce back into vwap gave me a chance to reload on the cheap.
Notice how you can could 2-4 levels for targeting profit taking! or you can use Edge TradePlanner to plan the sell targets!
TSLA
What day! It gave a clean rip and then with the robot taxi news gave a full blown reversal. I went short “late” after I saw the initial news on 256 break for a great flush right to the 242 level. I then alerted to THT-PRO members that I was looking for a bounce into the 250-252 to load up short targeting 220-235. We hit sub 235 overnight.
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 Friday July 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
Watching for market’s reaction to PPI data. Given the history of BTFD, I’d like to see some relief bounce before reloading short on SPY. ideally a test of 558-558.70