Will CPI today drive SPY to more all time highs or lead to profit taking? Trade ideas for Thursday Oct 10, 2024
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Good morning traders!
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Another day of baggers. I even missed the morning run because I wanted a dip buy/scoop. But JY didn’t! He planned it and nailed it!
Check out his share and plan. I’m so proud of him!
Solid work for Risk/Reward based profit taking! Did you know that Edge can also suggest target prices based on levels? Here is the same plan generated using the Move based targeting. Click EXIT BY MOVE.
The precision of my levels makes it all possible.
High of day on the 5775 calls was $22!!!
Wednesday’s Price Action
Yesterday was essentially a continuation move of the day before. I got so use to scooping dip buys that I struggle to join breakout trades. So I place my orders and wait for a dip to fill, that never came. It was frustrating — No doubt. This is where discipline comes in. I didn’t plan for a chase or define a join trend order so I had to wait. This was super challenging but by the afternoon it worked out.
I alerted I wanted to scoop SPX 5790c for $1 targeting 5797. We got it! 600% gainer!
I also alerted 5800c for a scalp and quickly got stopped for a 0.10c loss. Good thing I stopped. it proceeded to lose 90% of it’s value.
I also alerted I wanted 5800c for 0.50, that was still too much. I should have targeted 0.25-0.30. Anyways I saw vwap at 2.30, and set my sell orders to $2. Thinking if we get a squeeze into close I should at least get that for an exit… And we did!
The action and buying was super relentless.
Check out the trend quality after the first hour. Since I missed this move, I’m investigating, what can I do differently.
I have a process that works and I love catching reversals. Its how I get my bags. 90% of the trading days don’t look like the ones we had in the last 2 days. Its ok if I don’t catch those for my process/system. That said, I like having multiple playbooks ready. I know what I did wrong yesterday and what I missed. Rather than me remember every setup and nuance, I’m working on coding up the Key Level Breakout Playbook.
I should have joined long at 10:45 on the peach line back test. Let’s get the next one. I had my order in for 2.50, then 3.50, and didn’t do the math that it was going to 22 if right. so I can pay up to $5 and then add on any dips if I got it.
Thursday Premarket Action
After CPI came out SPY tested 577.20 and rejected and working it’s way to test the 574 breakout level. I
A number of tech names are gapping down premarket but not too much yet.
Let’s review the trade signals in SPY and go over ideas for today.
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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. 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.
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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 Q4 Alert Leaderboard
Here's a look at some of the potential gains achieved through our entry alerts:
Oct 09 - SPX 5775 $2.5 (thanks JY!) → $22 ($2500 —> $22000 potential)
Oct 09 - SPX 5800 $0.5 (dipped 0.20) → $2.45 ($500 —> $2450 potential)
Oct 09 - SPX 5790c $1 (dipped 0.70) → $8.65 ($1000 —> $8650 potential)
Oct 09 - SPX 5790c Round 2 $3.5 → $7.5 ($3500 —> $7500 potential)
Oct 08 - SPX 5750c $1 (dipped 0.70) → $2.30 ($1000 —> $8400 potential)
Oct 08 - SPX 5750c $2 (dipped 1.70) → $8.40 ($2000 —> $8400 potential)
Oct 08 - MSFT 415c $3 risk 0.20 —> 4.10 ($3000 → $4100) 5R!
Oct 07 - SPX 5720c $1 (dipped 1.20) → $3.30 ($1200 —> $3300 potential)
Oct 07 - SPX 5690p $1.50 (dipped 1.55) → $10.50 ($1550 —> $10500 potential)
Oct 07 - PDD 145p $2.35 (swing) → 5
Oct 04 - SPX 5700p $5 → $15.50 ($5000 —> $15500 potential)
Oct 04 - SPX 5730c $6 → $23.90 ($6000 —> $23900 potential)
Oct 04 - SPX 5740c $1.50 → $14 ($1500 —> $14000 potential)
Oct 04 - SPX 5750c $1 → $5 ($1000 —> $5000 potential)
Oct 04 - OXY 55c $0.35 → $0.80 ($3500 —> $8000 potential)
Oct 04 - META 595c $0.12 → 1.90 ($1200 —> $19000 potential)
Oct 03 - SPX 5655p $1 → $5 ($1000 —> $5000 potential)
Oct 03 - SPX 5690c $2 → $14.20($2000 → $14200 potential)
Oct 03 - SPX 5695c $1-2 → $9.80 ($1500 → $9800 potential)
Oct 03 - NVDA 125c $0.55 (swing)
Oct 03 - XOM 123c $0.22 (swing)
Oct 03 - OXY 55c $0.33 (swing)
Oct 03 - PDD 155c $1.20 (swing)
Oct 03 - SPX 5720/25 bear calls $2 —> 0 (risk $500 to collect $2000 premium)
Oct 02 - SPX 5700p $2.50 → $8.50 ($2500 —> $8500 potential)
Oct 02 - SPX 5720/25 bear calls $2.50 —> 0 (risk $500 to collect $2500 premium)
Oct 01 - SPX 5720p $3 → $12 ($3000 —> $12000 potential)
**Past Performance is not indicative of future results
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Trade Recap for Wed Oct 09
GOLD BOLD ITALIC = price action signal
GOLD REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
The key pattern to recognize was the 573.80 breakout on the daily and then how it perfectly moved 2 levels!!!
You can see I missed the multiple long opportunities but that is ok. I got long in META per process.
META
Can you spot why take profit around 3pm?
it tested the morning backtest level and SPY was nearing all time highs.
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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/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!
Education - 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.
Let me know in the comments if you have questions or would like to see examples, I’ll share them.
Trade Ideas - Plan for Thursday Oct 10
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
Watching SPY, PDD, NVDA today! The question on my mind, is will bull show up today or start taking profits.
TSLA has their Robo event tonight!
Let’s go over the ideas…