Hey Traders,
The market’s been falling apart this week.
I’m talking big, fast, nasty moves down.
📉 The Dow is getting wrecked.
📉 The NASDAQ is getting crushed.
📉 The S&P 500 just had a major breakdown.
And if you’re still trying to buy the dip — STOP!
Because the smart money isn’t playing the upside right now.
They’re playing the downside.
And that’s exactly how I planned my trades this week — shorting stocks, buying puts, and using bear call spreads to profit from this mess.
Let me show you what’s happening…
The Market Breakdown No One Can Ignore
I’ve been watching the S&P 500 (SPY), the NASDAQ (QQQ), and the Dow (DIA) closely.
And here’s what I’m seeing:
🚨 SPY broke down hard — short-term trends crossed below intermediate trends (a very bad sign).
🚨 QQQ made lower highs and lower lows — confirming the downtrend.
🚨 DIA is crumbling — weak across the board.
And the most telling sign?
🔻 The number of stocks making new lows is massively outpacing those making new highs.
When you see that happen, it’s like a flashing neon sign that says:
🚨 “DO NOT TRADE THE UPSIDE RIGHT NOW.” 🚨
How I’m Trading This Market
When I saw this breakdown happening, I immediately shifted my focus to bearish trades.
And here’s how I’m profiting while most traders are getting smoked:
📌 Buying Puts → Stocks drop faster than they go up, and when the market’s weak, put options pay out big.
📌 Shorting Stocks → Some stocks just want to go lower. If the trend is ugly, I’m getting short and riding it down.
📌 Bear Call Spreads → This is one of my favorite ways to trade a weak market. Sell a call above resistance, collect premium, and win even if the stock just doesn’t go up.
Case in point — PII is a great short setup right now:
So how could you play a stock like that?
✔ You could short the stock directly.
✔ You could buy puts and ride it down.
✔ Or you could do my favorite thing and use it to create income, selling bear call spread and stacking the odds even further in your favor.
In a market like this, those are the best ways to make money.
Final Thoughts
I know a lot of traders are looking at this market thinking, “When will this selling stop?”
Me?
I don’t care.
Because as long as the trend is weak, I’m making money on the downside.
And when the trend shifts back up?
I’ll be ready for that too.
But right now, the big money is on the short side.
So trade with the market, not against it.
Trade well,
Jack Carter
P.S. Did you catch the secretive $2.4 million dollar order I spotted in the market? I’m giving away the ticker right here!
