Hey Traders,

Have you ever driven on a road without lines?

Or maybe during a snowstorm or a heavy rainstorm where the lane markings get buried under all the mess?

If that’s ever happened to you, what did you notice?

You probably found yourself drifting without even realizing it.

Maybe you veered too close to another car… or even started to drift off the road completely!

It’s scary. And it’s dangerous.

And it’s not because you’re a bad driver — it’s because you can’t stay in a lane you can’t see.

You’re flying blind.

And guess what?

The same thing happens when you’re trading without guiderails.

If you just pull up a chart of the SPY over the last few months without any context, it looks like total chaos.

Down… up… down… down some more… up again…

A confusing mess of red and green candles slamming into each other.

No wonder so many traders feel like they’re guessing out there.

But when you lay three moving averages over the chart — the 20-day (short-term), 50-day (mid-term), and 200-day (long-term) like I’ve shown you before — something amazing happens.

The chaos turns into a roadmap.

*Add some “road lines” and now it all makes sense…*

Now you can see it clearly:

The SPY finds a bottom and tries to bounce — but smacks straight into the 20-day and gets rejected.
It sinks lower than before.
It tries again — another bounce, another smack against the falling 20-day line.
And each bounce is lower and weaker than the last.

Even when we had one of the biggest up days in history a few weeks ago — it’s the big green candle on April 9th, over twice as tall as any other candle on the chart above…

That rally looked strong — until it ran headfirst into the same overhead 20-day moving average… and got crushed back down.

Every move, every turn, every “surprise” — it’s all predictable when you have the right guiderails in place.

What the Market’s Telling Us Now

Fast forward to today:

For the first time in 2 months, SPY has managed to close above the 20-day moving average two trading days in a row last week — Thursday and Friday.

And it looks like it might hold today too.

That’s important… but it’s just step one.

Because we still have the 50-day and 200-day trendlines overhead — and those are major barriers the market will need to fight through if we’re going to see a real, sustainable rally.

Without those moving averages on your chart?

You might be tempted to think “The bottom’s in!” after every green candle… And that would be like drifting into oncoming traffic without even realizing it.

But with those lines?

You can calmly say: “We’re still stuck under resistance. We’re not out of the woods yet.” as you trade accordingly.

Use the Lines. Stay in Your Lane.

I say it all the time, and it’s never been more true:

A market-driven approach beats hope, fear, and guesswork every time.

The market’s not necessarily trying to trick you.

It’s telling you what it’s doing — plain as day — but you’ve got to know how to read the signs.

So the next time you feel like you’re guessing?

Remember the lines. Stick to them. Stay in your lane.

And you’ll be miles ahead of everyone else.

Trade well,
Jack Carter

P.S. Have you seen Lance’s 4pm Payouts? As a former market maker myself, I can tell you this might be the only strategy that gets you on the right side of the market right at the closing bell.

This Week’s Stocks

Markets are up! Or are they? I’ve been saying for months now that once markets are under the three main moving averages (20, 50 and 200 day), they are going to face resistance every time they try coming up.

And that’s what we’re seeing. Now markets may be “up” from their lows, but they are hardly bullish. Keep an eye on those charts and the price action and you’ll see.

In the meantime, there’s always a bull market somewhere… so today I’m sharing ONE bullish stock and TWO bearish stocks you can use to create income.

CNP (bullish)

CHDN (bearish)

ODFL (bearish)

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

What can you do with these stocks?

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

Buy or short — For bullish stocks, 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 upward-trending stocks we’re long on.

For downward-trending stocks (those that we’re bearish on), you can short them. This is a little more advanced, so if you’re just getting started, I wouldn’t recommend this play. Remember, just like buying a stock, shorting comes with unlimited risk if the stock moves against you, so always have a clear stop-loss in place.

You could buy an option.

For bullish stocks, this means buying a call option.
For bearish stocks, this means buying a put 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. Just remember, 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 when you consider buying calls on bullish stocks or buying puts on bearish stocks.

You could collect instant income.

If you’ve been following me for any length of time, you know that I’m a big fan of income plays, because they massively increase your odds of winning. We do this by SELLING options instead of buying them.

Not only do income plays let you get paid instantly — as soon as you place the trade. You massively increase your odds of winning, because the way we trade them, you don’t have to be 100% right about the direction of the stock.

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.

Income plays on bullish stocks can be naked puts, covered calls or a bull put spread.

Income plays on bearish stocks will be a little more complicated. But if you’re a more advanced trader, you can look into doing a short term bear call spread, which involves selling an out-of-the-money call and buying a call one strike price higher.

That’s all 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

Driving Blind (don’t let this be you)

What the Market’s Telling Us Now

Use the Lines. Stay in Your Lane.

Trending Stocks of the Week — April 28, 2025

This Week’s Stocks