The Market’s Catching Its Breath — and That’s a Good Thing

Jack Carter | July 14, 2025

Hey Traders,

If you’ve been watching the market lately, you’ve probably noticed something:

Not a lot’s been happening these past 10 days.

After a powerful move higher into the start of July, SPY has mostly been chopping sideways — and a lot of folks are starting to wonder if the run is over.

But before you start second-guessing everything, let me show you something…

Take a look at the chart above — specifically the green short-term, 20 day trendline.

It tracks short-term momentum, and if you notice, the price had gotten a little too extended above that trend line. And right now the price is getting back in sync with it after running a little hot.

That’s normal.

Strong moves need a breather.

A “breather” doesn’t always have to mean a big drop.

Sure, sometimes that breather looks like a pullback. Other times, like right now, it just looks like sideways chop while the trendline catches up underneath.

Either way, it’s nothing to panic over.

In fact, this is exactly what I warned about two weeks ago.

Back on June 30, I talked about how “too much blue” — too many bullish candles in a row — tends to stretch price above support.

And when that happens, we usually see a quick little reset.

And the very next day, I followed up with another note about how strong trends don’t move in straight lines. They surge, then pause… surge again, then breathe.

This latest pause we’re seeing? That’s the market breathing. It’s not breaking. It’s just catching up to structure.

Here’s What I’m Watching

For now, I’m keeping an eye on the green line — that’s my short-term support.

If we hold that area, the next leg up could be right around the corner.

If we start closing candles under it… well, we’ll cross that bridge when we get there.

But until then?

Stay patient. Let structure be your compass.

In fact, now is a perfect time to bone up on the income-producing strategies I shared with you last week.

Credit spreads, naked puts, covered calls… they’re all great ways to generate income whether the market moves sideways, dips a bit, or takes off again.

Because ultimately, we’re still in a bullish environment, even if the past 10 days hasn’t exactly felt like it.

Trade well,
Jack Carter

P.S. Another way to generate income? Harnessing one of the most volatile, talked-about stocks in the market to pay out, just for moving! Details here.

Trending Stocks of the Week — July 14, 2025

Jack Carter | July 14, 2025

Ever considered trading the most volatile stock on the market? It doesn’t have to be

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 have been more or less sideways for the past 10 days. Perfect time to lean heavy into income strategies.

The good news is that we’re still above support and if you’ve been following along, this breather is something we’ve been expecting.

My scan this week picked up on three bullish stocks:

  • DLTR
  • EPR
  • STRL

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