SPY broke key support on Tuesday. Will it reclaim or head lower? Trade ideas for Wed Oct 2, 2024
SPY broke key support on Tuesday. Will it reclaim or head lower? Trade ideas for Wed Oct 2, 2024
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Good morning traders!
Boy was I unprepared for yesterday’s opening action. Has an issue at the opening to fix access for members and was distracted between and needing to finish packing for my flight. I essentially missed morning dump (was too fast) to get in with good risk reward or any size. I got a quick scalp in for almost 100% gain, and that was it.
Just before my flight took off yesterday afternoon, when SPY was around 570.50 I determined we would close between 568 and 569 and suggested to THT PRO members to watch SPX 5720p for an entry between 3-5.. At the time the contracts were $6-7 Sure enough it dipped to 2.50. 5720p ran to $12 by the close! From $3 that is 300% gain, from $5 this is just over $100% gainer! I had set orders to buy with small size risking 100%! One of the things I love about SPX is that it is cash settled so I didn’t have to worry about an exact exit. (set sell of 50% at 9) and let the rest ride. It was nice to land in Peru and see profits!
Tuesday’s Price Action
I was not expecting the 472.50 to break with volume the way it did and that killed the upside continuation thesis. We also broke SPY 569 and rejected SPY 571. Overall until 571 is reclaimed, I’m now in bear camp. I’d like to see downside confirmation today and SPY gaps to be filled before heading to new highs/600 by Jan/Feb.
TSLA dipped to 250 and got bought. Imho 245-255 is a buy zone for TSLA to rip 270+ this month.
PDD I was completely wrong on. 134 didn’t break, it held and rallied all day.
META, continues to hold the 9ma on its daily chart, and volume on 600c for its an earnings run up seems to be in play
Wednesday Premarket Action
Premarket SPY consolidated between 566 and 569.
TSLA is almost back to 260. UPDATE: Delivery numbers reported and dumping under 250
PDD continues its rally and squeeze and now over 150. that 150-152 zone is where I wanted to short, but I’ll need to see where this extension may go to look for next gap up reversal short.
NKE dumped on its earning. the new CEO has work to do!
…..
Let’s review the action in SPY and go over ideas for today.
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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
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Here's a look at some of the potential gains achieved through our entry alerts:
Oct 01 - SPX 5720p $3 → $12 ($3000 —> $12000 potential)
**Past Performance is not indicative of future results
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Trade Recap for Tuesday Oct 01
GOLD BOLD ITALIC = price action signal
GOLD REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
We missed the great entries on the opening dump! THAT IS OK! I told members that 10:30-11:30 should bring a long entry. and we got just that!
Review the Chart to see how to use my process to plan and execute trades.
The trade Im personally ecstatic about is setting a dip buy order before my flight took off, and getting it filled and finding it closed up over 300% after I landed!
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/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!
Education - 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.
Let me know in the comments if you have questions or would like to see examples, I’ll share them.
Trade Ideas - Plan for Wednesdy Oct 02
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 NKE TSLA and SPY today!
Let’s go over the ideas…