SPY consolidates and bases yesterday. Small dip overnight. Will we get range today? Trade Ideas for Tue Aug 19
Rare Trade Setup delivers high probability trade but /ES was better than 0DTE options, I'll explain why
Good morning!
Yesterday I wrote
And consolidate we did. In a super tight range. That doesn’t mean there wasn’t opportunity but you had to paitent for range based entries and take profits at 50-150% for high probability secured gains.
I’ll show you how I did that and how to target the option contracts.
Then let’s talk about today.
SPY/SPX
All Day Setup: Consolidation action. Long on support
So we wait the first hour and the set alerts for 642.60
As you can see there were multiple dips at 642.60. so each dip under, need to buy SPX 6450c. I selected 6450c because that was first strike below high of day.
Here is what happened on those contracts
On each dip under or at 642.60 scoop the dip. sell at 50%.
Do this until after 2pm because contracts get really cheap. At this point sell 50-70% at 100% gain and the balance at 200-300% gain.
These actually spiked to 5 but why risk 200-300% profits for more?
There is massive opportunity in this market. Are you taking advantage? Literally have planned and alerted trades that pay over 300-1000%! 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.
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
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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.
Trade Ideas - Plan for Mon Aug 18
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
Overall I think market is consolidating but also needing a little dip before higher. A small healthy pull back before more highs.
for 3 days we topped and and yesterday looked a little weaker. Ideally we get a dip today, but if yesterday’s highs clear, I’ll be looking for a long