The power of Market Law #4

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     A few days ago I found myself attempting to guess when to sell my Call Credit Spread in the SPY and it finally occurred to me that I was ignoring Market Law #4 on my longer swing trades which for me is my options trading.  Market Law #4 states "If a stock fails to make a new low, after it has already made 3 or more lower lows, it will make a new high.  Conversely, if a stock fails to make a new high, after it has already made a series of higher highs (3 or More), it will make a new low on the next move."  Powerful!  So last Monday, July 10th the market had a hard sell off intraday and recovered, it was near the end of the day that I realized that the daily chart had attempted to make a lower low but could not, that's when I knew we were going to make a new high.  So to answer my question, when to sell my Call Credit Spread? The answer is after it makes a new higher high, not at the previous high, Duh!  I say Duh, because I sold my CCS 2 days early 🙁       

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