Will NVDA earnings be the next catalyst for SPY? Trade Ideas for Wed Aug 27
BOOM! We are 4/4 since i started the new blog with trade plans format!
Good morning!
What a rally into yesterday’s close! We had essential 4-5 hours of consolidation, and then a volume breakout!
Apologies everyone.. I just realized that for some reason the failed breakdown reversal on 642.50 idea was somehow now included in yesterday’s blog but the High Priority Level was. Strange because it was in my notes.
Recap for 2025-08-26
Yesterday's session on SPY was a masterclass in range-bound trading, with key levels acting as magnets for bounces and reversals. The provided trade ideas performed solidly overall, with two longs triggering and hitting initial targets amid failed breakdowns, though shorts faced some headwinds from intraday strength. Data verification shows the central pivot at 642.5 held firm as support multiple times, preventing deeper pullbacks, while upper resistances like 646.5 capped advances with clear rejections. A standout lesson: The failed breakdown long at 642.5 delivered +2.22 points to the first target, underscoring the power of volume-backed supports in chop—patience paid off as price bounced with conviction.
Major overhead resistance at 652.52 - Not tested during regular hours; remained irrelevant as price stayed below, no trades triggered.
Upper resistance at 647.51 - Briefly tested but held as resistance with one rejection; short idea didn't fully trigger, but limited upside to +0.5 points before fade.
High priority recent high at 646.5 - Acted as ceiling with 3 rejections and volume spike >2x average; failed breakout short triggered, hit first target for +1.78 points profit.
Central pivot at 642.5 - Held as support with 4 bounces; long idea triggered, reached both targets for +4.0 points total reward.
Let’s review why it worked.
SPY/SPX
Trade Setup: Failed breakdown reversal off 642.50
Notice the volume was mostly on dips and how many times there were bounces on 642.50…
Then the final dip at 2pm followed by an hod breakout at 2:30 leading to huge volume coming in to confirm the upside move!
Seeing breakouts with volume that hold the breakout level is KEY for recognizing the upside. All you then have to do is count the levels above to get paid!
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 Wed Aug 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 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.
Market Context
Fellow traders, let's gear up for another exciting session in SPY as we head into August 27, 2025. The broader market is showing signs of consolidation after a volatile stretch, with recent price action forming a tight range between key supports and resistances, hinting at potential failed breakouts or breakdowns that could deliver quick reversals. Based on the 1-minute OHLCV data from the last 5 days, we're seeing a mild bullish bias from multi-day highs around 646-647, but volume spikes on pullbacks suggest caution—any push above resistances could fail if buying dries up. The latest premarket close sits at 645.76, comfortably above the central pivot of 644.21 but within striking distance of upper resistances like 647.7, positioning us for reversal plays if levels reject. With no immediate catalysts on the horizon, expect choppy action, but stay sharp—these setups have been printing winners, and today's prep puts you ahead of the curve!
Key Events Today
No major events scheduled today, potentially leading to range-bound action.
