SPY fails to hold gains and market sell off triggered! Trade ideas for Fri Aug 01
Yesterday I shared a scenario with THT PRO members... what if Wed night move was a short squeeze? if it is then 632 can break and we see sub 628! Planning for this scenario provided 1000% gains!!!
Good morning!
What a drop overnight…. With Trump’s tariffs hitting countries around the world will we get a repeat of Feb? That’s what on my mind for today…
In the meantime the Scanner in Edge Trade Planner is helping us make sense of how big money is positioning!
I used these alerts:
To help guide my morning trades.
SPY/SPX
Morning Setup: GAP UP REVERSAL + 10:30 fail
This was a pretty clear signal. and I shared I was taking SPX 5350p for $1 and SPX 6400p for 7.
Pay attention to the Targets.
We got all 3 targets by end of day. Here is what happened.
the 6400P hit T2 $32… Perfect targeting!!! and by end of day hit 65!
the 6350P hit $6 … we locked in 500% gains.
As I saw the action progress, with 637.50 broken (my original thesis was bounce here for 640+) I adapted planning . The market had revealed I new story. Here is what I shared with THT PRO members. I was off on the end of day target, but it played out overnight.
Afternoon Setups: 12:30 VWAP reject and support backtest
The afternoon gave 2 spots to reposition for downside.
around 12:30-1pm (per our process) after vwap was rejected and 637.50 broke again
on the 635 back test around 3pm
Check out how the SPX 6350p did!
Over 20x potential on reaching SPY 632 target on vwap back test
Over 6x potential on reaching SPY 632 again after 635 was backtested
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 Fri Aug 01
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
With the major break of 632 and increased tariffs the market is dumping. The question is will BTFD return or will today be another major red day?
Here are my ideas: