Will SPY fly to new highs today? AAPL breaks 180 in premarket while DELL is rips higher on AI orders. My plan for Friday Mar 1.
SPX 0DTE - I love you! How you too can plan a trade that turns $0.50 into $10 in less than 45 minutes
Good morning traders.
Mixed signals in premarket:
AAPL got downgraded by GS and broke below major 180 support.
AMD is gapping up and looks poised to hit 200.
DELL is ripping hard on earnings
SPY did a low volume 2 pt gap down
Fear and Greed Index has upticked to 79.
Today should prove to provide lots of opportunities. And of course being Friday, the question is where is the next 10x trade.
Read on for my review of yesterday’s action and my 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, 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.
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
Thursday’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!
How you too can plan a trade that turns $0.50 into $10 in less than 45 minutes
SPY / SPX
The price action in SPY was tricky. I don’t know why but I feel like the market is on the verge of a flush but keeps getting bought up. Yesterday’s PCE action is a good example. In theory we should have flushed which probably attracted shorts.
The morning action after PCE was a rip. My initial thought was short squeeze given the expected negative news. After the double top came and we broke vwap and back tested it multiple times, it was time to get puts.
Nailed the exits into the first leg down on the break of 506.70. But then it reclaimed. No problem. I anticipated we would get aback test of that 507 previous support and reloaded short there. But then we popped triggering getting stopped.
At this point my brain I was confused and couldn’t get a read. We should be going down but not. So I follow process and wait for after lunch.
What happened? We consolidated for the next hour over vwap, pushed higher and then dipped on vwap around 3pm. Seeing the double bottom on vwap and reclaim over had me create a what if….
What if shorts are trapped. If a short squeeze into close comes into close where do we go? This is where my levels come in and I target SPX 5100-5107 into the close.
I also alerted 5100c for 0.30 and cut 90% off flat. Seeing the 5095c for 0.50 I had to take the chance because this was going to $5-$12. and I was worried at 5100c might only get to $1.20 if market only reaches 5100.
That is how you plan it. Look for cheap contracts based on your exit target. Or you can use Edge Trade Planner’s Generate Plan feature when that goes live. You just set the targets (it even suggests the targets) and it will find the great risk/reward option contracts and give you entry and exit plans for your idea!
NVDA
Edge’s Option scanner seems to love finding NVDA action.
Check that dip buy that they did. I mentioned this in chat and later went on to say that NVDA is setting up for 800+ into Friday which is playing out.
So overall the action indicated a back test of the 787 level that was broken the previous day. I wanted 750-760 to get long but we only got 772 as mentioned in yesterdays blog. So I had to keep all that i mind. so 787 became a failed breakdown reversal trade to upside targets. we should see 809-820 today if I’m right.
Summary Review of Market Price Action
Overall shorts got trapped and BTFD action continues.
Educational Lessons
From the price action review you should have learned the following:
Wait for the levels to plan trades
Plan for short squeezes.
Use Edge Trade Planner’s scanner to find trades.
It’s possible to get 10 to 20x in options with planning
Trade Ideas - Plan for Friday Mar 1
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.
DELL
Massive gap up on chip sales
AMD
gapping up too!
Wow lots to watch. I am worried that sometimes after data comes when the reaction is unexpected to negative news (PCE) getting a short squeeze that the real move comes the following day. With AAPL breaking 180, I will be watch if it reclaims and market squeeze, it fails, and market follows, or AAPL and market go their separate ways.
I’ll be focused on AMD, DELL, AAPL, and SPY today.
Read on for my thoughts/plan for today.