Jack Carter Trading

Hey traders,

The market continues its strong bull rally.

Oh sure, the major indexes were down a bit today…

But that’s nothing… If you’ve been following along for a while, you know that every bull rally has it’s surges and pullbacks. It’s all part of a healthy rally.

But today I want to talk to you about something I said last week:

“…here’s the thing — this is when I get a little concerned that we’re going to see a little pullback.”

A Selloff Could Be a Great Opportunity to Spot Strong Stocks

Now, don’t get me wrong. I’m not hoping for a market crash, but I’ve seen enough of these bull markets to know that every now and then, we get a selloff.

And when that happens, it can be a huge opportunity to spot strong stocks that hold their ground, even as broader market is selling off.

You’ve heard me say it before: “There’s always a bull market somewhere.”

But to spot those stocks that keep rising while everyone else is panicking, you need to know what to look for.

How to Spot Strong Stocks During a Pullback:

Look for stocks that have been trending upward for 3-4 months or more.
- As I’ve mentioned before, we want stocks that have consistently header higher over a period of 3-4 months or more.
Scan for stocks hitting new highs — but there’s a catch.
- I always say that first place I look for strong stocks is the list of stocks hitting new 52 week highs. But you can’t just blindly trade those stocks. New highs can be tempting, but the new high has to be part of a long term upward trend — not just a stock that’s surging higher on earnings, a product launch , or other headlines.
Pay attention to the 20-day trendline.
- Ideally, if you set up your trading platform like I explain here, the best stocks are ones that consistently bounce off their short-term 20 day trendline and head higher over the past few months or longer.

If you remember, I did this very thing back at the beginning of August when the market had that huge selloff that had some traders running for the hills.

Even during the huge 2 day selloff, I managed to find 8 stocks that were heading higher amid the chaos.

And when I followed up on those stocks 3 months later, those stocks had held their ground remarkably well.

The Bottom Line: Don’t Fear the Pullback — Use It

Now, I know many traders get nervous when the market starts to dip, and rightfully so. A pullback can feel unsettling.

But I want to remind you of two important things:

These dips are often just healthy corrections, not the end of the world.
They’re an opportunity to spot stocks that stay strong during a downturn.

Those stocks that stay strong during a downturn are going to be particularly strong once the market finds its footing again.

So next time we see a pullback, don’t panic! Look at it as an opportunity to spot strong stocks.

You’ll be able to jump in at a good price and set yourself up for bigger moves once the market starts its next leg up.

Trade well,

Jack Carter

P.S. Here’s another way to supercharge your portfolio before 2025 hits.

This Week’s Stocks

We’re in a bull market, baby! And this week’s three trending stocks are surging higher!

Check them out here:

CLBT

CMI

ISRG

And don’t forget about last week’s list, 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:

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.

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.

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)