Will we get more lows today? Trade Ideas for Tue May 6
Are you planning trades that pay over 300%?
Yesterday I asked if the rally was finally exhausted. The problem… the gap down. So we follow process…
I initially went long yesterday shooting for a gap fill, thinking the selling would wait until today or tomorrow. But in the last hour of the market, the upside grind failed. I initially tried to catch the bounce off vwap, but the bounce was weak and I suddelnly realized this could dump. It was the play I was planning, but it started about 20 minutes earlier than I planed and in a slightly different form than I had expected.
So I alerted I was taking SPX 5660p for 1.50. My target $10-15. We got 11!
Beautiful way to close a slow super boring all day grind up! I told members to be patient that a paying move was coming.
As for the morning long, we got T1. From $5-7 entry to $10-14 target.
This morning my swings for downside from over 565 are starting to pay. Let’s see if I gets to 5500 or less by Friday.
Stop being a hobbyist and invest in becoming a focused disciplined trader with a trade to win mindset with us.
Overnight Action
SPY started fading over night as Trump announced more tariffs. This time on the film inducting trigger a big drop in NFLX
SPY - gapping down again and testing 559 after rejecting 562.50
PLTR - Yesterday I wrote that I was shooting for a short around 131+. alerted got short at 130 with commons. :) dumped to 112 overnight.
DASH - Reported and is gapping down
HIMS - another high flyer that is gapping down after e/r
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
Trade Recap for Mon May 5
GOLD BOLD ITALIC = price action signal
SOFT YELLOW = thinking/anticipation
WHITE REGULAR = action to take/taken
GREEN REGULAR = trades I should have taken
SPY / SPX
I was a little slow on recognizing the short. Otherwise would have got 10x instead of 6x.
GET EXCITED. I’ll be publishing a book called Trading To Win: Stop trading to NOT lose. Title is still in the works. I plan to include exercises to help you improve your mindset and your trading. Leave a comment or send me a message if interested in the book. My birthday is coming in May - I hope to release this before then.
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.
Trade Ideas - Plan for Tue May 6
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
Overall, looking for more downside, there is a chance though that we flush and pop for positioning ahead of FOMC tomorrow, but overall my bias is that 550-551 is coming at minimum this week on SPY.