TSLA drops to 180! What's Next? SPY getting ready for a leg - Which way? Is chip rally exhausted? Trade Ideas for 0DTE Friday Jan 26!
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Introduction (for New Readers)
Welcome to my blog on Two Hour Trading, your daily source for market insights and trading opportunities. In this blog, I will provide you with a comprehensive analysis of the market, educational lessons, and trade ideas to help you stay ahead in your trading journey and best of all doing it less than two hours a day.
What Subscribers Get
Subscribers to this blog will receive daily updates on market analysis, educational content, and up to three trade ideas, all based on real-life examples and my personal approach to trading. Additionally, you will have access to the top scanner results for ideas in Edge Trade Planner (Beta), a powerful tool to enhance your trading decisions.
What is Two Hour Trading?
It’s my system for finding and executing trades while spending less than two hours a day with a goal of earning 100-300% on the capital I risk while waiting for 1000%+ gain trades to setup. Key benefits:
High Quality trades with great reward vs risk
Avoid Overtrading and losses from it
Trading to Win vs Trading to Not Lose
2024 Alert Leaderboard
(I’ve decided to include a leaderboard so you can see what potential the 2 Hour Trading System has)
The following is based on entry alerts.
Jan 25 - TSLA 185p. Entry 1.5 - High after $6.3 ($1500 → $6300 potential)
Jan 24 - SPX 4890p Entry $1.50 - High after $22 ($1500 → $22k potential)
Jan 24 - SPX 4880p Entry $0.50 - High after $12 ($500 → $6000 potential)
Jan 17 - SPX 4740c Entry $0.20 - High after $2.80 ($200→ $2800 potential)
Jan 17 - SPX 4740c Entry $1.20 - High after $12 ($1200→ $12000 potential)
**Past Performance is not indicative of future results
Thursday’s Price Action
Yesterday was mostly a consolidation day with TSLA being the easy perfect planned trade.
SPY - consolidates but provides 8x opportunity i last hour
I was mentally prepared for a day 2 dump if SPY rejected 477.50, but it push into 488s and eventually flushed into 475.50. And in between that, it was choppy! Because the price action wasn’t “clean” or in alignment with my plan, I chose to skip trading SPY/SPX yesterday since my focus was trade TSLA short with size.
That said here is how one could have traded SPY/SPX.
You can see the 488.20 level get rejected and a lower high at 10:30. Taking 4880p for $3 and set a sell order for $6 for 100% gain when it hit opening support.
Normally the pop back on vwap would have been where I want to reload for the short, but this didn’t align with my thesis for 487.50 being hod for sell off. And it dipped again, finding support at 486.80. like the previous day, I would want to see more toppy action and a fail.
SPY double topped again near 12, but this is outside my planned trading time and while it did run to $12 to fill the gap, I have don’t care about missing this trade. It did not align with my plan and timing. I don’t want to watch charts all day, and it was so choppy. Experience has taught me to avoid trades like this. Look at the emotional roller coaster on the 4880p contracts on the way to $12. No thank you!!!
SPY / SPX - late afternoon trade setup
I didn’t take this trade as I was essentially done with my trading day after getting mission accomplished on TSLA short. This is a key lesson. Have a plan, execute it, be happy. Don’t get caught up needing to bang everything.
I share this because I love teaching
You can see the r/g almost tested on SPX. SPY it did, but it was a failed breakdown. so we watch if previous support is cleared. IF so, the bears likely getting trapped as they stubbornly wait for SPY 485 to break. BUT as I stated yesterday, that is major support, which means also near there is a good play to consider longs.
You can see the previous support reclaimed and dip comes. But here is where the magic comes. Ask yourself, “What if we go higher, is 10R potential there?” I like to buy the dip and would enter around 0.80 to $1 or one can wait for the green candle in the highlighted circles on the chart above and grab long for $1 to $1.5. hold into close or multiples. Take 50% off at $4.50 to $5 to lock 200% plus gain and protect capital and ride the rest to close hitting $10!!! that’s process and being systematic and using the levels I provide for planning.
TSLA - 180 target for 300% gainer!
sorry I’m running out of time so today’s blog will be shorter than usuals.
This took 2 attempts. I was hoping for 195 to coming to get a massive short in but we play what is given. Review the chart to see my logic for entering.
I targetted 180 so 185p sell for majority is $6. $5 intrinsic, $1premium — how do I know? experience. you will gain that too!
NVDA - nice short using edge
I’m thinking chips are extended and NVDA will back test 590-600. so when I saw this in the Edge’s scanner I took NVDA 620p for 3.50
Why? 615c $12 in the money imho is a premium sell bet. and they were buying 620 and 605p.
Here is the plan I generated in Edge.
High of day was $13, just missing the $14 target. might get it today. I saw NVDA hit 602 in premarket.
Summary Review of Market Price Action
Overall the market is in full BTFD mode and yesterday was a consolidation day. Pull backs are normal and very healthy and can be planned for. There are typically more consolidation type days than trend days in a year so playing the range should be a well honed skill and your regular pay day. while range days pay you massive bonuses.
Educational Lessons
From the price action review you should have learned the following:
Patience and planning is the hard work in trading. Use Edge to plan your trades and bracket orders to maximize gains and step away from the computer. Trust in your plan.
Use the levels and the reaction to the levels I share each day to guide your trades
Making 1000%+ trades trading SPX is very achievable.
Making 100-300% on non 0DTE trades is also very possible.
If a stock doesn’t move the way you want, consider skipping trades on it
Edge Trade Planner - Top Scan Alerts
No surprises here nice finds on a consolidation day.
Trade Ideas - Plan for Friday Jan 26
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 to. 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.
SPY - held 485 well. Overall imho I feel like it is acting like it is prepping for next leg up. using 485 and 488 as my guide and over 488.50 as possible trigger for a long, targeting 489.50 and 492. I’d prefer one or two more consolidation days though and maybe a failed breakdown on 485 to come before legging up.
TSLA - Wrecked. 180 is major support. So 185 is key. 185 double top reject, short for 180 break and flush into 170-175. or 180 break to get short, or finally, if 185 turns into support might get a squeezer into 190-192. yesterday I told members I was targeting 183-185 as my reshort spot. In premarket we are here. I also took small 182.50c on 180 bounce yesterday in case of a bounce by long term swing bidders.
NVDA - if 616 rejects and I see a bunch of 605/610 puts coming in will take short.
NFLX - might be read for another leg up. eyeing 575 for gap up reversal short or 560 dip and rip for a long. yolo 570c for 0.50 or less and 570p for $0.50 if we get to 575 quickly.
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Disclaimer: All content provided is for educational and entertainment purposes only. It should not considered financial advise or a recommendation to buy or sell a security. The content is the author’s opinion only and may or may not be accurate. Author may or may not have positions in securities and may or may not open a position in next 48 hours.