Too Much Blue

Jack Carter | June 30, 2025

Hey Traders,

Take a look at the market.

No really — look at it.

That’s the SPY over the last six months with daily candles. Now think about all the headlines we’ve heard recently:

  • Bombings in Iran
  • Tariff talks getting paused and restarted (and pause and restarted…)
  • The Fed refusing to cut rates
  • GDP coming in lower than expected
  • Congress going back and forth on that “Big Beautiful Bill”

If you were trading the headlines, you’d probably think the market’s in trouble. But now ask yourself…

What’s really been happening?

The Market’s Been Shrugging It All Off

Despite all that noise, the market’s been marching up.

Relentlessly. Higher highs. Higher lows.

And if you look close — really close — there’s a lesson buried in that chart that’s too important to miss.

What Are Blue Candles?

In my custom-built TrendPoint software, blue candles represent days where the market makes both a higher high and a higher low — a strong signal that the uptrend is strong.

That’s a good thing. Until it’s not.

Because when you get too many of those in a row, price tends to stretch way above the short-term trendline — the green line on the chart — and that’s when we usually see the market pull back.

Strength Needs to Breathe

It’s not catastrophic. It’s not a crash.

It’s just how markets work.

Even the strongest trends need to take a breather.

So when I see 3-5 blue candle days in a row, I start expecting a short-term drop. Nothing major — just a healthy reset down to about the green line.

And that’s exactly where we are right now, waiting for that return to the green line.

What You Should Do

So if you hear some dramatic, doom-and-gloom headline in the next day or two — don’t panic. Don’t go reacting to the news.

Follow the structure.

Because structure tells the truth. Headlines just tell stories.

And right now the charts are telling us that markets are in bullish mode.

Trade well,
Jack Carter

P.S. Have you seen this income strategy that targets weekly payouts whether the stock goes up down or nowhere at all? Check it out here.

Trending Stocks of the Week — June 30, 2025

Jack Carter | June 30, 2025

Have you seen the income setup that works whether the stock goes up, down or nowhere? Click here to check it out now

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

Despite the chaos — tariffs, the “Big Beautiful Bill”, Iran… who knows what else — markets continue their steady upward march.

That’s why I tell you to ignore the headlines. I know it’s the hardest thing to do, but ignoring headlines and following the market’s structure is the quickest way to up your trading game.

Here are three bullish picks from my scanner for this week:

  • CAKE
  • WWD
  • SPOT

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