Hey Traders,
Let’s cut through the noise.
I know this market’s been giving people whiplash — a little up, a little down, no clear direction… or so it seems.
But if you’re watching the right signals?
It’s all pretty straightforward.
Right now, we’re in a classic bear market environment.
And how do I know?
Because I’m looking at the same three things I always do:
✅ The price has been under all three key trendlines:
• 20-day (short-term)
• 50-day (mid-term)
• 200-day (long-term)
✅ We’ve had all the bearish crossovers — short-term below medium-term, medium-term below long-term
✅ The market’s failed every time it bumps its head on that short-term trendline
That’s not chaos. That’s structure.
The Ceiling’s Still There
Yesterday, SPY closed just below the 20-day moving average — that’s resistance.
That green line overhead? It’s a ceiling. And until we break above it with real strength — and hold it — the pressure is still down.
Even if we do close above the 20-day? (as we did today after this video was recorded)
That just brings us into another tight box: stuck between the medium-term and long-term trendlines above and the short term trendline below.
The market’s stuck between those trendlines with barely any breathing room.
We’d still have a wall of resistance ahead — and that means the buyers have their work cut out for them.
And judging by the charts? They’re not exactly stampeding in.
Premium’s Still the Play
Now here’s the good news — because there’s always good news if you know where to look…
In this kind of market, strategy matters more than ever.
- Covered calls? Still working.
- Bear call spreads? Absolutely.
- Bull put spreads? Believe it or not — yes, on the right stock —even with the market trending lower.
Why? Because sellers on the other side don’t always want to assign stock — especially when they think they can sell it for more on the open market.
And credit spreads in general?
They’re crushing it right now.
You sell premium. You get paid up front. You let the chaos work in your favor.
That’s what I’ve been doing — and it’s been working beautifully.
Final Thoughts: Don’t Fight the Tape
We’re not out of the woods. Not yet.
But the market isn’t hiding what it’s doing — it’s telling you, plain as day.
Just look at where price is in relation to those three trendlines.
If it’s under them, the trend is down.
If the trend is down, you don’t go bottom fishing.
You don’t go trying to guess when the market’s going to go up.
You trade smart. You sell premium. You keep your trades short and stacked in your favor.
Let the crowd guess. You follow the chart.
Trade well,
Jack Carter
P.S. Nearly $4million in Wall Street trades are betting this Mag 7 stock will plummet!
