Trump pays again! Nailing SPX 6230p and flipping into 6260c! Trade ideas for Thu Jul 17
Learn how combining price action and rumor/Trump news delivers outsized gains! How much? 1000% on 6230p and 800% on 6260c.
Good morning!
Let’s get right into the trades/education! Later in the blog, I’ll tell you my thoughts about the direction and the overnight price action.
SPY/SPX
Morning trade setup - Gap up Reversal (Gap fill goal)
As I wrote yesterday, I wanted to go long on a gap fill and had a long bias. Initially it looked like vwap was and we would pop, but vwap broke. right into 624.80. I had alerted taking SPX 6230p on the break with tight stops giving a quick 3R and 5R gains into the 621.70 level. Wow talk about perfect levels!?
I took a small long, mostly because that was the idea, but i generally like to wait for the first hour to complete to get a feel for what the market wants. I didn’t like the pricing on calls and the action seemed to choppy so I waited.
We had an initial dump at 10:50 and then 30 minutes later we got news that Trump said he would fire Powell.
I knew that should spook the market and the price action confirmed that. Just in case of a double top took starter on 6230p at $3 and then started adding on confirmation… averaging.
The real payout came when 619.80 broke.
Here is the process for SPX 6230p
The real payout where one could take size came in the afternoon. I initial lost on my long but then wait for better pricing and reattacked.
AFTERNOON TRADE
So after the news came out Trump backtracked and said had no intention of firing Powell. 619.80 was reclaimed. That told me shorts were trapped and we would rip higher.
So I: scaled up long on vwap brake but contracts were juiced and on the pull backs I got raped. giving back a bunch of my gains on the short. so I waited I knew a squeeze would come.
My opportunity came after 2pm.
I alerted I wanted 6260c for 0.50, be we only dipped to just under $1. I then shared that we got a failed breakdown reversal. So scooped at $1 and these ran to $8 while doubling up at $3
So members asked me why was I so confidant to buy at 3? It’s process.
We had failed breakdown and reclaimed of 619.80. so shorts trapped.
Then we had an hour or two of consolidation on 623 with another liquidity trap / failed breakdown. By definition we should move to the level up. and using my levels that mean 80% probability of being able to sell for 6-12!
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 Thu Jul 17
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
Jobs numbers looked positive to me. Here is what I’m looking for.