SPY reclaims 632 yesterday and gaps up over 636 overnight as expected! New ATH coming? Trade Ideas for Thur Aug 07
/ES Futures trade yields 20-40 points risking 5pts overnight. Interested in Trading futures with a prop firm. Let me know!! I love easy money trades!
Good morning!
I had a hard time getting long yesterday until I saw hod break after the first hour. Until then I assumed we would have chop/consolidation day.
So I used those rules and collected profits based on what I planned. What that also meant is that I nailed a long entry but sold “too soon” missing 400% more in gains.
You can’t be right every time. What you can do is be process centric and execute to your plans.
Let’s go over the trades and the planning and then how I switched from consolidation to joining long for upside.
SPY/SPX
Morning Setup (First Hour): Consolidation/Chop Expected
I told THT PRO members that I expect new highs to get sold and new lows to get bought while we chop. That is exactly what happened.
So I played by chop/consolidation rules. Which means I want to enter for reversal toward vwap and collect profits at 50-150% of contract value.
We got multiple trades that worked exactly like that!
Basically using SPX 6300p for downside and 6320c for upside.
My biggest regret was the final long at 10:30 I sold at for 100-150% gain only and it ran to 800%!
That is 100% ok. I had 5 winning trades for 50-150% gains! in one hour. That is solid work based on the price action and plan I had.
The only thing I could have done better was if I was bull biased after gap fill at the end of first hour. But I wasn’t not until SPY cleared 632 or ORB 60.
Morning Setup: 10:30 reversal + ORB 60 breakout
So I was stll operating under Chop Rules and I sold the SPX 6320c too early.
Boy did I sell early!!! but that is ok! I executed per plan! Trade based on your thesis until something changes. Don’t get caught up in should have could have.
Was there a reason for me to expect 632+ coming ? Maybe. But I didn’t have it.
Now notice how we got the ORB 60 break out.
Given that and see how Edge Scanner showed 6350 credit sells on puts. I was targeting 6350 to come and so was comfortable getting long for an 8-12 target on SPX 6340C.
After that move it was MISSION ACCOMPLISHED.
I told members I’d be back at 2pm.
Afternoon Setups: NONE
There really wasn’t any good trade setups in the afternoon. SPY basically consolidated above 631.20 and 632.
Overnight Setup: GAPPER
I wanted to long /ES overnight because we based over 632. What did I write yesterday? If over 632 I want to go long!
/ES ran 40 points overnight!
Let’ me know if you want to learn about trading /ES futures and entry and exit ideas overnight.
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 Thur Aug 07
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
As EXPECTED SPY gapped up overnight. Its freaking clockwork! I’ve added trading futures because so many overnight moves are happening, they are clean, and one can reap consistent gains with defined risk!
So with SPY’s gap up and AAPL’s massive run yesterday. Where does the market go today? It doesn’t matter!
Wait for levels and reactions to the levels and take profits on the move. We want a+ setups. Here is what I’m looking for….