SPY gapping up this morning. Tech earnings begin this week. Is it time to BTFD? Trade ideas for Monday July 22, 2024.
CRWD, TSLA, GOOGL, V and more on watch this week. Are you ready to bank?
Good morning traders!
I’m excited about this coming. What I’m not excited about is the gap up this morning. I was really wanting a no brainer gap down reversal trade this morning ahead of earnings.
with SPY having dropped almost 17 pts in 3 days, a bounce was imminent. The question this week is how will the market reaction to the coming earnings reports this week. Especially with many big tech names reporting.
I am excited about getting some range, fun and profits!
Let’s review Friday’s action and then talk about some ideas for today.
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 19 - SPX 5500p $2. reached $12! ($2000 —> $12000 potential)
July 18 - SPX 5580p $5. reached $53+! ($5000 —> $53000 potential)
July 17 - SPX 5540c $2. reached $16! ($2000 —> $16000 potential)
July 16 - SPX 5660c $2. reached $10! ($2000 —> $10000 potential)
July 15 - SPX 5650c $1. reached $4! ($1000 —> $4000 potential)
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.
Friday’s Recap
Let’s review Wednesday’s trades. Did you take advantage? If not read on an learn how.
SPY/SPX
Let’s review. Yesterday the idea I wrote for SPY 0.00%↑ :
On Friday I wrote, watch SPY 554.20 as a pivot. You can see in the chart above how it was rejected in the first 15 minutes and market got heavy. We were able to scoop SPX 5500p for $2! I was targeting $12-15 for the exits with a possible big bonus payday move toward 32.
Given the chop there were multiple chancs to enter and scalp for 100-200%+ gains.
Process wise. I took most gains on move from $2-8. and then let runners do their thing. Unfortunately I was too patient waiting for 546 or less to come so I could restart swing longs.
CRWD
With so many outages triggered by CRWD, and it was unable to recover over the 315 level. This morning it lost 300 support with more downgrades.
We took 300p on the 310 break in afternoon for a move from $1 to $3. I was hoping it would have flush sub 290 on Friday like it is doing this morning but they held it.
In theory 270 will get retested and if it breaks, could get ugly.
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 Monday July 22
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
I think today could be more difficult. There should be BTFD action that comes in but if it fails, and more selling hits, we could be in for a nasty drop. The question is, will it be clean action or will it be choppy. Reminder today is OpEx so we could get some wild moves or they could bleed the contracts or possibly a bit of both!
Stick to the process and consider trading a little bit smaller today unless it is a no brainer trade setup.