The Market’s Rallying — But I’m Still Watching This

Jack Carter | May 12, 2025

Hey Traders,

On Friday, I showed you how the market’s been stuck between two key trendlines — and how, if you had those lines on your chart, none of this sideways chop should’ve surprised you.

I ended that note by saying:

“If you haven’t already started trading this way — I’ll show you the subtle mindset shift that needs to happen before it feels second nature.”

Let’s talk about that.

But First, Let’s Address Today’s Rally

The market’s up big today — and the headlines are already telling you why.

“Trump announces new trade deal with China…”
“Tariffs reduced…”
“Markets surge…”

I’ve said it before and I’ll say it again:

News can make the market go up… but it can’t usually make it stay up.

We’ve seen plenty of big green candles before — and more often than not, they run right into resistance and roll over.

Could this be different? Maybe.

But I’m not here to make predictions.

I’m here to play the odds.

Why Some Traders Are Still Hesitating

Now here’s the part that matters:

Even if you see what the market is doing — even if you understand the trendlines — a lot of traders still hesitate to act.

Why?

Because they haven’t made the mental shift yet.

They still want confirmation. Certainty. A signal that screams “YES! THIS IS IT!”

But that’s not how this works.

Trading Is About Structure — Not Certainty

You’ll never get rid of the uncertainty in trading. Little secret: Even I still get it wrong from time to time at this stage in my trading career.

But you can learn to work with it — by following the structure.

When I take a trade, I’m not doing it because I “know” what the market’s going to do.

I’m doing it because the odds are in my favor. Because I’ve seen the same patterns play out time and time again over the past few decades.

And when the odds are in your favor — and you’ve got a strategy that builds in cushion, time, and structure — you don’t need to be right every time.

You just need to play your edge.

Not Sure Yet? Start With Paper

If this still feels scary — if you’re still unsure about trusting something as “invisible” as a trendline — then start by paper trading.

Most platforms offer it, and it’s the best way to prove to yourself that this stuff works without risking real cash.

Set up a few paper trades using the trendline setups we’ve been talking about.

Then watch what happens when price hits the 50-day. The 200-day.

You’ll start to see it.

And once you see it?

You’ll stop guessing. You’ll stop hesitating. And you’ll start trading with structure — even when the market looks like a mess.

Trade well,
Jack Carter

P.S. Have you seen this green diamond strategy everyone’s talking about?

Trending Stocks of the Week — May 12, 2025

Jack Carter | May 12, 2025

This “green diamond” strategy picks up stocks just before Wall Street jumps in with both feet! Three tickers he’d “bet the house” on!

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

These stocks are picked by my purpose-built, custom-made TrendPoint software 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 jumped in a major way today on the China news. But remember: news can make the market go up… but it can’t keep it there.

While I can’t see the future, I’d be surprised if this market didn’t come down after this excitement wears off.

For now, my scanner pulled up 1 bullish and one bearish stock for this week:

  • SHLD (bullish)
  • BITI (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:

  1. 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.
  2. 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.
  3. 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