Hey Traders,
I don’t care if it’s an options trade, a stock trade, or a game of poker — I always play the odds.
Because when you put the odds in your favor, you don’t have to guess.
You simply know that over a period of time, you’re going to win more often than you’re going to lose.
And today, I want to give you one simple way to do that in this crazy market.
When a Stock Gaps Up — That’s Your Sell Signal
Right now, we’re seeing wild gaps in both directions.
✅ Stocks gapping higher out of nowhere.
✅ Stocks gapping lower just as fast.
It’s a market full of overreactions — and that’s where the opportunity is.
Because here’s something I’ve learned after decades of trading:
Any abnormal move higher is a sell signal.
When a stock gaps up huge? Odds are, it won’t hold.
Sure, sometimes stocks will “gap and go.” But more often than not, that gap fills back in sooner rather than later.
Sometimes it happens the same day.
Sometimes it takes a few days or weeks.
But it happens.
And if you’re holding when it happens? You could be giving back hard-earned profits.
It Works in Reverse, Too
Now, what about gap-downs?
Same thing.
A lot of times, a huge move lower is just an overreaction.
Look at Walmart (WMT) today — the stock took a nosedive on some negative earnings guidance
PLTR? Same deal — gap down on bad news.
Will it bounce back? Maybe, maybe not.
But here’s what I do know: Gaps eventually get filled.
And when you see them on the upside, you better believe that’s your cue to take profits and run.
How to Play It
This market is handing out sell signals left and right.
And when you see a stock gap abnormally high, you don’t have to guess what happens next.
🚀 Big pop? Take your profits.
🚀 Massive jump? Lock it in.
🚀 Gap up out of nowhere? Sell into the strength and move on.
That’s how you play the odds — and that’s how you stay ahead in a market like this.
Trade well,
Jack Carter
