UPS SPOT and GE gapping on ER this morning. Trade ideas for Tuesday July 23, 2024.
CRWD, TSLA, GOOGL, V and more on watch this week. Are you ready to bank?
Good morning traders!
I hear from a trader who spent the weekend reviewing his trades. He had earlier messaged me saying that he was amazed how much time I spend in planning trades and being systematic. After reviewing his trades he found that 80% were unplanned and didn’t perform well and he committed to quality vs quantity. This morning he reported having taken “only” 3 trades! Congratulations to him! It is a hard journey to shift to fewer and better. At least it was for me.
Yesterday I made a plan and targeted that SPY 556.50+ was coming by end of day. And with that SPX would reach 5585+.
Accordingly when SPX 5580 was around $4 I alerted and placed orders for 5580c for 0.50 and $1. These spiked to $3+. I took profits on majority of the position by being systematic. My overall goal was $5+. but even though SPX didn’t even get close to 5580, due to contracts getting juice and having insanely great entry prices we got 3-5x face value returns! It’s amazing what having a thesis, planning, and discount shopping can do for you!
Let’s review yesterday’s Price Action and then get into ideas for today. I’ll be adding a few names we don’t usually trade to the watchlist: UPS 0.00%↑ GE 0.00%↑ SPOT 0.00%↑
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 22 - CRWD 240p $1.7. reached $3.5! ($1700 —> $3500 potential)
July 22 - SPX 5580c $0.5. reached $3.3! ($500 —> $3300 potential)
July 19 - SPX 5500p $2. reached $12! ($2000 —> $12000 potential)
July 18 - SPX 5580p $5. reached $53+! ($5000 —> $53000 potential)
July 17 - SPX 5540c $2. reached $16! ($2000 —> $16000 potential)
July 16 - SPX 5660c $2. reached $10! ($2000 —> $10000 potential)
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 Recap
Let’s review Monday’s trades. Did you take advantage? If not read on an learn how.
SPY/SPX
Let’s review. Yesterday the idea I wrote for SPY 0.00%↑ that I wanted some gap fill before going long. Given our process, we got short on the first pop and rejection at 15min mark. I chose to use SPX 5570/5575 bear calls for around. 1.70-2. These came down to 0.25 :)
I had errands to run so missed the reload for the Failed breakout short. but what I did do was place discount orders for SPX 5580c in case we got a push to 556.50+ yesterday. Those orders filled while I was away from desk for 0.50 and $1. When I came back they were $2!!! Even though I thought $5+ was coming, I get 3-5x face value, on OTM. I will always take some profit. and then look for a reload. I alerted I wanted a reload around 0.50. I reloaded at 0.45 and as it became clear we weren’t going to get one more level, I stopped out flat.
Key lessons: We planned for the short, and we were patient for a long entry for at least a 2 level drop from the open.
CRWD
I jumped the gun on this and got in a little early but we ended up getting a 100% gainer or 10R on the first short on this. the second trade was a reload at vwap that provided almost another 100% trade. The key lesson here is be wary when a stock makes new highs or lows and the option contracts while directionally right, do not make new highs. Take profits fast!
CRWD filled a gap at 260 and is gapping up this morning. Watching for range break of 260 or 274 to join trend today
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 23
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
Expecting more chop. The action yesterday definitely fell like there was more selling than buying at the highs.