We got TWO 10x+ trades yesterday. SPY Gaps Up again after flushing into support on yesterday's close. My plan for Wed March 27
We got TWO 10x+ trades yesterday. SPY Gaps Up again after flushing into support on yesterday's close. My plan for Wed March 27
Are you confused by SPY's gap up after yesterday's close? I'll share my thoughts on what is happening in today's blog.
Good morning!
Yesterday seriously tested my patience after early morning action. But that patience paid off in the last 30 minutes which gave bangers after being wrong about how the day would play out!
I will keep saying this. Process is super important. I had a bias, but the volume and action invalidated it and the process let me identify 2 trades that paid big!
But not just for me! Congrats Boro!
I’ll get into that in the education section.
As for this morning, we are gapping up again and after yesterday’s sharp sell (but it was only 2.5pts) some people may have been thinking we would gap down. The algos have the process nailed.
What is up with the Gap UP after selling off yesterday
On these afternoon flushes they have been buying the dip. If you look back over the last few months, these dips have all been BTFD and often led to more highs in following days.
I have 2 theories I’m operating on for bias, but remember I stay systematic with reacting to levels and price action.
Theory 1: Market is starting to short some exhaustion. Yesterday should have been a gap fill dip and rip with a test of 522.50-523 imho. Instead what happened was we had a low volume gap up, and then after morning dip and mini push, there wasn’t any more upside. We were just pinned as sellers “masterfully” exit their longs. Today could be the same,unless we clear yesterday’s highs. Low volume gap up, and selling again to bidders at the highest price possible without triggering stops and more lows. This theory should be validated or invalidated over next week.
Theory 2: BTFD remains strong. Dips after 3-4 days near the 9ma or a major level continue to get bought. Notice the thin blue moving average. Any dip on that has been met with upside within 2 days.
Yesterday we dipped to 518.30 which is more or less the previous high and now become support. What happened? It got bought.
Also. Edge’s scanner picked up on this interesting action into the close.
And Check out the buying on Todays SPX 5240c at the close.
This is an alignment of bullish buying on a pull back into support being rewarded by a gap up the following day. In theory market makers are taking advantage of overnight low volume to drive prices higher. The question for us day traders is, will it be gap and go or fill the gap next?
I hope this helped clear up some of the confusion. I know the gaps can be annoying, but there are ways to plan for them. The next you see 3+ red days and pull back into the 9ma on SPY, consider going long with a 2-4 day hold until this sequence stops working.
OK so lets get into the review and the plan for today…
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 each morning, all based on real-life examples and my personal approach to trading.
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?
It’s 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 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
Stacking the deck in your favor
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.
Mar 22 - LULU 390p Entry $1.25 - High after $5.7 ($1125 → $5700 potential)
Mar 21 - SMCI 1000c Entry $4.80 - High after $22.60 ($480 → $2260 potential)
Mar 21 - SMCI 1000c Entry $4.80 - High after $22.60 ($480 → $2260 potential)
Mar 20 - SPX 4200c Entry $7.50 - High after $27.12 ($750 → $2710 potential)
Mar 19 - SPX 4170c Entry $1.10 - High after $11.30 ($1100 → $11300 potential)
Mar 18 - GOOGL 147p Entry $0.65 - High after $1.71 ($650 → $1700 potential)
*runner reached $2Mar 18 - SMCI 900p Entry $10 - High after $30 ($1000 → $3000 potenital)
*runner reached $60!Mar 14 - SPX 5150c Entry $3 - High after $10.50 ($3000 → $10500 potential)
Mar 12 - SPX 5150c Entry $4 - High after $27.50 ($4000 → $27500 potential)
Mar 11 - SPX 5120c Entry $3 - High after 7.50 ($3000 → $7500 potential)
Mar 8 - SMCI 1150p Entry $5 - High after $56.20 ($500 → $5620 potential)
Mar 8 - AMD 220c Entry $0.50 - High after $7.65 ($500 → $7650 potential)
Mar 7 - SPX 5175c Entry $0.50 - High after $2.40 ($500→ $2400 potential)
Mar 6 - SPX 5120c Entry $3.50 - High after $12+ ($3500→ $12000 potential)
Mar 5 - SPX 5070c Entry $0.50 - High after $10.75 ($500 → $10750 potential)
** alerted 0.30 entry wanted. dipped to 0.40. entered at 0.50Mar 5 - SPX 5070p Entry $1 - High after $13.50 ($1000 → $13500 potential)
Mar 4 - SMCI 1200c Entry $33 - High after $61 ($3300 —> $6100 potential)
Mar 1 - SPX 5120c Entry $2 - High after $20 ($2000 —> $20000 potential)
Feb 29 - SPX 5095c Entry 0.50 - High after $10 ($500 —> $10000 potential)
Feb 29 - SPX 5100c Entry 0.30 - High after $5+ ($300 —> $5000 potential)
Feb 27 - TSLA 195p Entry 0.90 - High after $2.30+ ($900 —> $2300 potential)
Feb 26 - SPX 5070p Entry 0.20 - High after $2. ($200 —> $2000 potential)
Feb 23 - NVDA 800p Entry 2.50 - High after $25.11 ($3000 → $25110 potential)
**Dipped to 2.57 (had to chase entry 3)
Feb 23 - NVDA 820c Entry 2.25 (swing from Thursday) - High after $25.00 ($2250 → $25000 potential)
Feb 22 - SPX 4090c Entry $2.50 - High after $9.20 ($2500 → $9200 potential)
Feb 16 - SMCI 1000p Entry $11 - High after $195 ($1100 → $19500 potential)
Feb 15 - TSLA 195c. Entry $1.20 - High after 5.95 ($1200 → $5950 potential)
Feb 14 - NVDA 720p. Entry $4.5 - High after $12 ($4500 → $12000 potential)
Feb 13 - SPX 4955p. Entry $5 - High after $34 ($5000 → $34000 potential)
Feb 12 - ARM 180c. Entry $1.20 - High after $14.10 ($1200 → $14000 potential)
Feb08 - ARM 100c. Entry $5 - High after $27.50. ($5000 → $27500 potential)
Feb07 - TSLA 185c. Entry $2.53 - Hight after $5.60 ($2530 —> $5600 potential)
Feb05 - SPX 4940c. Entry $3 - High after $16.60 ($3000 → $16,600 potential)
Feb02 - AMD 180c. Entry 0.15 - High after $1 ($1500 —> $10000 potential)
Jan 29 - SPX 4910c. Entry $1 - High after $20 ($1000 —> $20000 potential)
Jan 26 - NFLX 570c. Entry $0.50 - High after $9.85 ($500 → $9850 potential)
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 → $22000 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
For live alerts and market commentary click the button below.
Tuesday’s Price Action (Education)
You don't try to make $100,000 ...You don’t start by saying, I’m going to make the biggest most profitable trade and turn $1000 into $100,000 and fix all my bad trades before.
You say, I’m going to plan and execute 1 trade as perfectly as I can today. You do that every single day, and soon you'll have a $100,000 and likely much more!
Today’s section is going to be short, let’s focus on the 10 bagger trade and how I planned it.
SPY/SPX
I had a bullish bias after 3 days of selling so I focused on long entries on Failed breakdown reversals. The long entries were great, but there was no follow through for a payout.
Then if you notice, the failed breakouts were lower highs. This was the clue. Then we had the volume selling come in at 3:30pm.
When the 519.80 level came I tried a long in case of a fast reversal back, and quickly got stopped. While watching I also was planning what if we get next leg down. The key to this was recognizing that if the next leg down came, SPX was going to flush into 5200-5205. (I was targeting SPY 518). Worst case scenario on downside was 5210. So 5215p will hit at least $5 and 5210 with contract juice would likely hit $2+. So I have a minimum of 5x and high probably 10x trade. I take the trade! SPX 5115p for $1.20 and 5210p for $0.50.
And that is exactly what played out! Here is the chat log.
Trade Ideas - Plan for Wednesday Mar 27
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.
The big question on my mind is, will today be gap and go or do we get a dip first/more selling. From a risk/reward stand point, I’d want to see a dip before going long.
Today I’m watching SPY, NVDA, SMCI, and TSLA
Will keep an eye on DJT too, but my gut says more stupid upside may come before this is done. Imho DJT should be under $6 and that is generous.