There’s Always a Bull Market Somewhere

Jack Carter | August 26, 2024

Hey traders,

Can you believe it’s August 26th already? It feels like just yesterday that markets were “melting down,” but that was over three weeks ago — Friday, August 2nd and Monday, August 5th, to be exact.

The market chaos we all felt has already started to fade from memory, but the lessons we can learn from it are still as sharp as ever.

Think about all the noise and chaos you’ve heard since the beginning of August.

The Fed… recession fears… earnings reports flying left and right… and just last week, it seemed like everyone and their mother was glued to Jerome Powell’s every word.

The headlines were screaming, the pundits were panicking, and if you let the news get to you, you might have thought about sitting out of the markets entirely.

But that would have been a mistake.

One thing I’ve learned in my nearly 40 years in the markets is something most people don’t realize:

There’s always a bull market somewhere.

Two weeks ago, I shared a list of 8 stocks that held strong, even while the market was melting down at the start of this month. And guess what? Even today, three weeks later, those stocks have barely wavered.

Sure, some of them were doing so well that they eventually cooled off a bit and touched their short-term 20-day moving average.

That’s not only normal, but completely expected.

None of them turned into losers. Plus, that’s exactly why I always tell you that buying options should be RARE.

Instead, you should focus on selling options… on creating income using a stock’s momentum.

If you had traded a well-constructed 3-day credit spread with any of these stocks, you’d be sitting pretty.

Even if you had done a naked put or a covered call, you’d be golden.

That’s why I went on such a rant last week about all the attention on Powell’s speech. These stocks weren’t worried about Powell’s speech, and you shouldn’t be either.

The market noise will always be there.

But by sticking with strong trends and using income strategies that don’t rely on guessing the market’s next move, I’ve learned that I find myself on the winning side more often than not.

Remember, there’s always a bull market somewhere — you just need to know where to look and how to trade it.

Trade well,

Jack Carter

Trending Stocks of the Week — August 26, 2024

Jack Carter | August 26, 2024

Quick note before we get started:
A brand-new high-probability trade every single morning the market’s open? You’ve got to see this!

Now for our top trending stocks of the week:

To help you discover the power of trends, every week, every week, I share with you a handful of the top trending stocks.

These stocks are picked by the custom-built TrendPoint software I designed to pick the strongest trending stocks in the market right now.

If you know anything about me, you know that every trade I get into starts with a trending stock.

Unless a stock is in a strong trend, I don’t want to hear about it. In my book, wishy washy stocks are the quickest way to losing money.

This Week’s Stocks

Markets softened up a bit last week in preparation for Powell’s speech. If you haven’t caught my anti-Fed rant, you need to see it.

As of right now, only the DIA has broken the all time high — and that was just for a few minutes.

But remember what I always tell you: it doesn’t matter what the Fed is doing. There’s always a bull market somewhere…

Like these 3 stocks that are still in unbroken, months-long strong bullish trends:

  • ACIW
  • CL
  • CPT

And don’t forget about last week’s picks, which you can find here.

This week’s stocks show a strong trend and could still be in play for the next few weeks.

What can you do with these stocks?

Well, there are a couple of things you could consider — after doing your own research, of course:

  1. You could just buy the stock. This is probably the simplest thing you could do. Then just wait for it to go up and sell when you hit a profit target you’re comfortable with. This is only for stocks we’re long on. For stocks we’re short on, you can short them.
  2. You could buy an option. You know I’m not a fan of speculative plays, but every once in a while it doesn’t hurt to throw a little cash at a speculative option. Of course, while options can move bigtime if the stock goes up… the downside of options is that you have a time limit on how quickly you need the stock to make that move. So think about your risk tolerance and consider buying calls or puts depending on the stock recommendations above.
  3. You could do an income play. If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they increase your odds of winning. We do this by SELLING options instead of buying them. If you haven’t tried your hand at income trading yet, I urge you to try this exercise for yourself.

    Without risking any money, it will really let you see the power of income trading and why it’s my favorite method.

    Whether you end up doing naked puts, covered calls or some kind of spread (like this bull put spread example), income plays like these are really my preferred method to use when I’ve found a great trending stock like the ones on this week’s list.

    Because even if the trend comes to an end, you don’t have to be exactly right. With a direction play like buying a call, you have to be exactly right. But an income play gives you a lot more “leeway”, where the stock can move against you and you still have room to breathe and win the trade.

That’s it for now.

Stay tuned, because I’ll be sending you a new list of TrendPoint Best Trending Stocks every week! (usually Mondays)

Trade well,

Jack Carter