SPY perfectly followed the levels! Hits 631.40 levels and puts in ugly candle. Trade ideas for Tue Jul 22
I missed the 1000% paying trade but got in "late" and it delivered 300%
Good morning!
Last week I had mentioned I was looking for 630+ for a possible yank to develop. Using the levels, SPY went exactly at my 631.40 level. (new high is 631.54). I’m super proud of these levels and how often they work like magic.
This eventually led to.a sell program in the afternoon and an ugly daily candle.
629.50 needs to reclaim today or we could get some selling. More thoughts on that in the paid section.
For now let’s get into my favorite part of the blog… the education and planning of trades. Let me know if you like this or not. I spend over 30min to an hour each day writing the blog so I want to make sure it is giving you what you need. If you have suggestions let me know.
SPY/SPX
Yesterday I wrote I wanted to get long. What I didn’t do in my rush to publish was explain I wanted 631.40 and that I would also be looking for a short there. Sorry about that. I thought that was clear from previous blogs but I need to make sure I keep the ideas clear. I’ll do better.
That said I was clear about this idea to THT PRO members…
Morning trade setups - Opening Range break and 11:30 exhaustion
The first 15 minutes provided a long entry based on pushing over premarket resistance. I hate chasing long, but was expecting 630+ to come today so got in using /ES. Target 6373. That also was where I wanted to start short.
The target was reached by the end of the first hour. That said, It wasn’t ready to dump yet.
After a strong trend or move, it often needs to digest and exhaust buyers before a dip can come.
My solution. I didnt want to watch charts all day…. Bear Calls. I’ll let theta pay me. So plan was to take SPX 6330/35c for $3 credit. Max risk $2. Over 65% win rate. Why? The trade setup! We have new all time highs after a small gap up and 2 level move. We lock in 50% at $1 to pay for the risk. and rode the rest into close.
Also, I had alerted that I was watching 6320p.
Here is what those did after the 11:30am exhaustion.
Afternoon setup - Spectre Special
I got a bit complacent on the short side with options since I was already positioned on /ES. i wanted a larger wick fake breakout reversal in the afternoon but that didn’t come.
But we got the triple top I told THT PRO members to look for followed by a mini failed breakout between 1 and 2pm.
I returned to trade at 2pm.
Unfortunately I missed the cheapie buys on 6320p at 0.40. Congrats member H who filled there! I jumped in at $2 on vwap break and back test.
Using that as my guide. when 629 hit, the 6320p hit $10. I’m out and done. made 400%!!!
Good enough.
These went on to hit $15. And the 6373 /ES short. I alerted locking in a bunch for 30 points. Overnight /ES dipped to 6336. to lock more in and swing 10% size. as long as it stays under 6353.
COIN
Gave a perfect day 2 setup for downside. I alerted taking 400p for 2.50. these hit 6.50 into the close over over 150% gains.
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 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
My focus today is as follows…