Tight Consolidation Day as Expected. Will TSLA rally after live stream? UNH meets target. SPX last hour pays again. Trade Ideas for Wed May 21
Will overnight market weakness lead to more selling or will get bought again and lead to new highs?
Will TSLA 0.00%↑ rally after livestream?
Given option pricing, it appears option players are expecting TSLA to rally this week. Will it after this live stream event?
Top Trades from Tues May 20
SPY / SPX
Yesterday I wrote I wanted to short off 592 .. a net bullish bias at the open for some gap fill before trying shorts.
Idea: SPX 5920p $3 target $15-30
Trigger: 592 break and back test at 2:15pm
I had wrote that 592 was a key level I was watching. This was a textbook short however there wasn’t follow through to the next level below. Thankfully I got $8, 10, and 13 sells and stopped at 6 on the balance. Given the day was mostly consolidation I didn’t trust the downside.
NOTICE how 3pm brought a reversal.
Idea: SPX 5930c $3 target $10+
Trigger: 3pm failed breakdown reversal leading to vwap. target SPX 5940
“Spectre Special” didn’t develop today. Market makers either caught on or we didn’t get enough chop or range to get the fills and reward. All my cheapie buy orders kept getting missed.
UNH meets target
Idea: UNH 300c $4 target $24
Trigger: Swing - failed break down reversal on Friday
Yesterday I wrote I planned to sell 80%. Turned out to be a good thing, because UNH got downgraded and dumped overnight. We perfectly got my target of $24 on (reached 26!).
Reminder to THT PRO members: When you see me take multiple strikes and a swing, it a high conviction trade.
Do you want to our next Failed Breakdown Reversal Alert? Come trade with us. Warning. We aren’t cheap, but neither are our returns. Don’t settle for 15% gains over days when we find trades that pay 50 to 500% or more in under 2 hours!
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
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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.
Trade Ideas - Plan for Wed May 21
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
Overnight SPY broke 592 again and then 589. It also broke the /ES 5925 level which has been acting as support. I’ll be watching if today turns into a second red day or if we get BTFD again and push to more highs.