Will SPY continue its rally today? Trade Ideas for Tue Jun 3
Are you planning 500%+ paying trades? If not, its because you aren't using my levels.
What a start to June! As many of you know I typically like to wait for the first hour to complete. I find most of my multi-bag trades come after 11am. Yesterday provide 3 opportunities that we took advantage.
SPY / SPX
IDEA: 585 bounce/reversal
Yesterday I wrote bull case: long 585 stops 584.50 with the levels above being targets 589.50 and 591.40 By 10am. SPY had dropped from 589.50 to 585. I alerted getting long. I didn’t want to because of the time, but it was a fast test of premarket low and key level I believed would act as support.
I entered nailed the low at 4.80 it popped to 6 and then looked like the it might continue lower and stopped at 5, but then it quickly pushed higher and I got back in around 6.30 once 586 started basing. It look liked a failed breakdown reversal of 586 was forming. This quickly was confirmed and 30 minutes later at 10:35 these contracts hit $15.
So let’ break that down. 6.30 entry. $2 risk. at $12.30 that is 3R. Any exit above 12:30 is a win.
Using my levels for SPY and SPX I shared this plan to capture the next leg up.
At 11:02 am I wrote:
And that this idea is valid as long as SPY stays over vwap.
Sure enough at 2pm. 5920c dipped to $2 and this what happened after…
Within 90 minutes these contracts went 9x! Did I hold for that.. Did I get the planned $12+ exits. Absolutely! 500% gains secured! with consistency :)
The wild thing, is the SPX 5900c from the morning hit $36 by end of day. AND that was the end of it.
I also alerted for Spectre Special trades for last 15minutes — I wanted SPX 5930c for $1 and 5935c for 0.30. Where did they end? 5930c at $6.08 (500%) and and 5935c at 1.08 (250%).
Please review the chart for why I was long centric based on price action.
There is massive opportunity in this market. Are you taking advantage? Literally have planned and alerted trades that pay over 500%! 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.
Finally I’m starting to do something new and share /ES futures ideas to capture overnight moves.
I alerted I like entries on /ES at 5910-5922 risking vs 5905 targeting 5950+. So far we got the dip to 5910. Sold 50% at 5935 (5x reward vs risk from 5910).
Thoughts from Monday’s price action:
Market is continues to be in consolidation mode and dips are still being bought.
SPY cleared 592.50 into the close which implies 595+ coming this week
Waiting for after 11:00am is ideal for getting great risk/reward pricing on ideas.
We are starting to get random large moves mid day and secondary moves/position possible after 2pm again.
TSLA
I originally shared the idea I wanted to get long at 337 in Edge Trade Planner. But the action showed it wasn’t ready. So I waited. Once TSLA tested 334, I struck and alerted I was take 350c for $4 and risking 50% for a swing. By end of day they reached $6. Lets see if I can $10+ target exit this week!
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.
I’m out of time, but I’ll make a video on this later.
Trade Ideas - Plan for Tue Jun 03
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
We perfectly got a dip and back test to the levels I wanted overnight. Now the question is do we get the same back test again during opening action and then upside follow through today?
Here is what I’m watching