SPY retuns to consolidation. BAC rises on outlook. Trade ideas for Tuesday July 16, 2024.
I grew my account 30% yesterday, but dodged a bullet by following process that could have led to a 50% account hit -- a few lessons from the trenches.
Good morning traders!
What a day yesterday! Multiple trade setups for incredible returns! The name of the game right now is patience and waiting for key levels to tested. Let the trades come to you!
Monday’s Recap and Trade Ideas for Today
Let’s review Monday’s trades and explore some ideas for today. Did you take advantage? If not read on an learn how.
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 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.
Monday’s Price Action
SPY/SPX
Please review the chart above.
On days without a catalyst, I like to look for 2 level move reversals. I want to long after a gap fill, but I can play short for the gap fill idea.
During first hour there was a 2 level push and then fail. An initial short can be started and then added to under vwap looking fo that gap fill. Remember to follow process and take profit along the way per THT rules, remember the thesis is get long and reversal can start before the gap is filled.
After lunch 561.80 support failed and I started looking for 561.50 to be reclaimed to get long thinking we close over vwap.
By being patient and using SPX 5650c as the vehicle we were able to get long at 1 risking 0.50 for a 6R+ trade. risking 0.50 to make over $3 profit! so that is risking $500 to make $3000!
I wasn’t planning for a short again so missed that trade setup but the logic would be:
Double top/failed push over vwap. get short for gap fill. Using that logic around 3:30pm and 5620p would have been over 10x and possibly 20x gains!
Upon getting the gap fill in the last 10 minutes. then using 5635 as the target, the 5625c for under 0.50 ripped over $8
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 Tuesday July 16
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
Overall watching for trend and upside continuation off dips.