SPY puts in Textbook Gap Down Reversal. Will Rally Continue? Trade Ideas for Wed Sep 3
VIDEO REVIEW: Learn how to trade the ideas
Don’t Bleed Cash at Open Chaos. The market's been on a rollercoaster the last five days, with SPY showing a mix of bullish pushes and sharp pullbacks. From the data, we've seen failed breakouts above 645 and breakdowns below 640, setting up a neutral-to-bullish bias as premarket action gaps up. The latest premarket close is 643.23, sitting just above the pivot at 640.19 and eyeing resistance at 645.46, suggesting potential for upward momentum if it holds key supports, but watch for reversals if it fails to break higher.
Trade REVIEW: Solid Day. Trade Ideas 2 ideas triggered and won!
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.
Plan for Wed Sep 03
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.
Key Events Today
2:00 PM - Fed Beige Book - Provides regional economic insights, potentially influencing rate expectations and broad indices like SPY.
Key Levels and Their Significance
659.95 - High Priority: Strong overhead resistance with historical caps; data shows no recent touches but aligns with multi-day highs around 649, boosted by volume spikes >2x average on prior peaks (80% probability of rejection based on past rejections, ideal for swing traders at midday).
650.07: Upper resistance zone; frequent pullbacks in data with volume surges, like on 2025-08-28 highs, offering 70% bounce likelihood for scalpers during open hours.
645.46 - High Priority: Key breakout level near premarket price (within 0.5%); data reveals multiple failed breakdowns here with clear 1-minute chart rejections and 2x volume at 2025-09-02 touches, 75% probability for reversal, best for day traders at open.
643.00: Data-derived from premarket bounces and volume spikes >2x average (e.g., 2025-09-03 04:19:00 bar); acts as near-term support/resistance pivot, 65% hold rate for intraday scalps.
640.19 - High Priority: Central pivot with strong data support from frequent reversals and high-volume holds (e.g., 2025-09-02 closes); within 0.5% of premarket, 72% probability of bounce, suited for all trader types early session.
635.58: Lower support; aligned with data lows and Fibonacci retracements from recent swings, volume spikes indicate 60% reversal chance for swing positions later in day.
630.31: Deeper support level; rare touches in data but marks multi-day lows with potential for strong rebounds if tested, 55% probability based on historical patterns.
620.43: Extreme downside support; not touched in recent data but provides a safety net for worst-case breakdowns, low probability but high impact for long-term holds.
Trade Ideas
Become the trader who turns market traps into triumphs others envy!