When I look at a chart of the SPY lately, it reminds me of a pinball machine…
Have you been noticing anything weird lately?
I personally can’t help but see a pinball machine with the lights blinking, the ball being bounced around all over the place — no direction, chaos…
The masters of the machine were the ones that could drown out all the noise and flash… they would focus on what they could do to score points… and one thing that was critical… timing.
And in this market, the chaos is only a problem for those who aren’t equipped with the right tools…
… I am going to show you a chart of the SPY — that way, you can see the game of pinball being played in the market right now…
… and finally, how to make money playing the game with my simple-to-spot pattern…
Let me show you want I mean by pinball machine. Look at the SPY chart below:
Do you see it? Imagine a pinball bouncing every which way across the chart.
The question is: How do you profit off the game?
The answer lies in how you play it!
First, you have to have the right setups. I have developed what I call my pinball setup.
Picture this…I wait until right before the ball goes down the gutter. Then…I pounce on the trade! It pops back to a strategic point on the board where I lock in my points.
Like the movement of a pinball, this is generally a pretty quick win before it bounces to the next place.
Second, be patient. You can’t force a pattern to be there or will it into existence. Jump in early thinking a trade is ABOUT to set up and you’ll end up losing.
For example: below is a chart for CrowdStrike Holdings (CRWD). If you had the patience to let this setup, you could have been cashing in on this market with minimal risk.
Let’s look at how the trade evolved.
First off, the stock is clearly trending down, making lower highs and lower lows.
The Relative Strength Indicator, RSI (at the top of the chart), dips below 30 for the first time in this downtrend. This could be a signal the stock is oversold.
After this happens, the stock finally takes a breather and starts to show some bottoming (the black rectangle on the chart).
We watch… stay patient…and wait…
This is where traders can make mistakes. You wait through this downtrend to find a bottom. Potentially it’s here. But your patience has run thin. You jump in on the first sign of a move up.
Unfortunately, that’s not the setup. That’s normal stock behavior. If you jump in without confirmation, you will quickly find yourself without money in your trading account.
Here’s how I play it.
For this trade I want to wait until the stock price gets above the 8 exponential moving average (EMA)… (the blue line in the chart).
Once I get the signal…we’re in business.
You see, with the downtrend in this stock, space was created between the 8 and 34 EMAs. Whether it continues down long-term or not… ith the right setup, there is room for Pinball Bounce from the 8 EMA to the 34 EMA.
Now, all we have to do is watch for the price to stay above the 8 EMA. Then, we buy into a move that could test the 34 EMA (red line in chart) as a profit target.
Here’s what happened next… (chart below)
When they work… they really work. In just a few short days the stock reached the target area.
At this point, you can take the full profit…
Or, you can maximize your gains. I use these setups to take a first target profit at the 34 EMA range and keep a little on the trade for a longer-term play…depending on what the chart tells me.
This is one of my bread and butter trades that I take and make money on. It works in all market conditions.
Yet, this is just one of the setups I teach through my course material, mentorship, and live training room daily.
Not only that, you can use my setups in multiples to make money in the market. I teach you to trade not just follow along…make trading your own.
Here’s how two of my students made money on this setup.
Travis zeroed in on the setup and went long with options contracts (instead of buying the stock outright) for massive gains.
Oct 3, 11:06 AM
Travis R: hit 40% and 50% on options with CRWD Petra. thank you!
And Heidi, on the other hand, bought the stock… but used the setup as a day trade (instead of a swing trade) playing it off the opening 15 minute range (a great entry strategy I also teach in my live training)
Oct 3, 10:23 AM
Heidi W: took CRWD from 57.01 to 58.45 300 shares – thanks for the idea petra
This pinball market is confusing and frustrating. I get it. Let me bring some clarity into your trading. You can find it in my daily training room.
I gather with all my traders. We look for trades, talk about setups, and answer questions. All live, every day.