SPY continues breakout rally. Will it reach 640 today? Trade ideas for Tue Jul 29
Very rangy action yesterday. Multiple 100% gain trade chance plus a 500% payer!
Good morning! Sorry for not publishing yesterday. Still sick today but feeling a little bit better.
Let’s review the action from yesterday.
After the large gap up SPY sold off until it based and established support at 635.50 and then launched once 636.30 was reclaimed. It’s made record closes for 6 days in a row!
The question in my mind, is how long will this keep up?
SPY/SPX
Afternoon Setup: Squeezer
I was looking for either a final leg dump to come, or a pinned close unless I saw 636.30 clear in which case vwap target comes into play.
Unfortunately when I made my notes 6392 was my target but by the time SPY finished basing, 6388 should have been the new target. I unfortunately didn’t notice or adjust for that so I took 6390c for 0.20 thinking can sell for $2. Nope. only got 100% to make it risk free.
We should have gotten 6385c for 0.70. Those did the move that I was looking for!
Will today give us another 500%+ opportunity?
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
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.
Trade Ideas - Plan for Tue Jul 29
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
Another gap up today. Will SPY reach 640? if it does i’ll be looking to get short there. That said, ever since Fed signalled increased chances of a rate cut this week, the market has been running. How will traders position today and tomorrow morning ahead of their interest rate decision.
Where does one get long with good risk/reward. or is it better to wait for 640+ to position short. Here are my levels for SPY and my thoughts..