SPY makes new high and consolidates all day? What happens next? Trade ideas for Fri Jul 25
Very rangy action yesterday. Multiple 100% gain trade chance plus a 500% payer!
Good morning!
SPY pushed to new highs but didn’t get to the level above until after hours. Given the multiple moves and vwap crosses my plan was to only go long at support or at high of day resistance for a short.
Overnight SPY ran to 636.75 and then failed dropping back on 635.
What will pay us today? Let’s do the education and then get into ideas for today.
SPY/SPX
Morning setup - Previous day Close as support go long
took 6380c on the double bottom. Here is how it did.
SPX 6380c delivered 100 and then almost 200% gainer
Afternoon setup - Failed breakout Reversal / Lower High
There were 3 short plays and 1 long play in the afternoon
As for Plays for the close I was looking at these 2 contracts.
Here is what the 6375P did
Basically on the lower high fail 2→12 for 500%
in last 5 minutes on the vwap reject I took SPX 6370p for 1 and 1.50. I was targeting 6367 or less to come. it got to 6364. so hit $6!!! I was out at $4 on high probability 300% gainer!
How did I know to target SPX 6367? It’s the levels that THT PRO members get.
Everything below 6367 is bonus.
Using the levels for targeting wins again!
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 Jul 25
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
SPY touched level above and given back most of the overnight gains. here is my plan for today.