How to Trade Price Spikes Part 1

I just wanted to touch base with regards to the SPY price spikes on the recent setup this week and the new setup that I signaled last night to everyone.

It’s best if you read this really short post and most importantly see the three charts. The focus should be on the last chart as it shows last nights price spike warning.

Once you review this then the below paragraphs will make sense and you will understand what has just happened and likely learn something 95% of traders don’t understand:

MUST SEE THESE CHARTS BEFORE YOU UNDERSTAND AND LEARN FROM THE CONTENT BELOW: http://www.thegoldandoilguy.com/watch-this-play-by-play-setup-unfold/

Price Spikes, let me touch on these. In most cases if we see a price spike on the SPY the stock market seems move and reach that level within 24-48 hours. But I do also notice that when we see a price spike we typically get a better opportunity to enter the trade the day after as the “market” tries to shake the rest of the market participants off the boat before they allow the move to take place.

For example, yesterday we saw the spike in price pointing to a strong move up in stocks. While the market tipped its hand so we could see what they were planning to do, today’s big gap down is triggering fear and panic. Those who got long are under pressure today and likely going to bail on the trade idea. Ans those who have no idea about these price spikes but are long are simply selling today in fear of a crash. The “Market” is cleansing itself for the next move up. Well, that is what I feel is happening… nothing is 100% certain.

As pointed out last week and this week, there are several different time cycles topping and bottoming at the same time and it will continue for another week. So this market will remain choppy. Locking in profits if you nail a move within a day or two is wise thing.

I hope this helps shed some light on trading and price spikes…?