Important Gold and SPX Trade Tip and Trade SetupWednesday March 02, 2016 13:51
Couple things to touch on as this week begins.
Below is a chart of two price spikes tonight: SPY and GLD.
Remember the market always has a way of making it difficult to get into a trade or stay in it long enough to make money. And when we get these price spikes we typically get a better chance to enter the following day/morning when the market tries to shake everyone out of the market who are positioned for this direction of a move. Meaning we could see SPY drop and shake everyone out before heading higher tomorrow afternoon, and GLD may spike to shake all the shorts out of the market before it drops.
The way the market has been moving is that if stocks are going up, gold is going down… so these spikes make a lot of sense right now.
I find it’s best to wait for a setup you are really excited about at an extreme price than to just jump in at first sign of a signal. I would rather miss some trades and get in only when I’m really feeling the setup is screaming at me. Most signals like Price Spikes and Cycles topping or bottoming are early indicators by a half day to three days in most cases.
The ideal setup could be Tuesday March 1st for gold miners. I feel they will gap higher and give us a great shorting opportunity (buy DUST) and the returns could be big. With that said remember DUST is 3x move and you can see your position grow or shrink by 15-20% in one day…
Also, keep in mind price spikes and my short term forecasts are “Trade Ideas” for active traders who are comfortable taking trades on their own. When I have an OFFICIAL Trade Alert subscribers will be sent an email, SMS text alert and it will be posted on the member’s area home page and in the portfolio.
Well, I just woke up to get an early start reviewing the market and I see the SPY (SP500 Index) has already reached it’s post-market spike… Geez that was fast. See updated chart below. But that is like 6or 7 of these SPY price spikes we have seen in the past 6 weeks and everyone has been a success.
Now we will see what gold does today. I do feel gold will move up then reverse hard in afternoon.