Hey Traders,
Roses are red,
Violets are blue…
That’s about the extent of my experience with poetry.
But yesterday, I read a market commentary that called what we’re seeing right now “a culling of optimism”…
And that? That struck me as poetry.
Because that’s exactly what this market is.
Four Out of Five Days — New Year-to-Date Lows
Let’s just call it what it is — it’s been brutal out there.
SPY and QQQ have made new year-to-date lows in four out of the last five trading days.
And today?
After being in the red most of the day, we’re actually seeing a green candle — for now.
But we’ve already had two green candles this week that meant absolutely nothing.
The market briefly found its footing, traders thought the worst was over, and then…
📉 New lows.
📉 More selling.
📉 Another wave of optimism wiped out.
What Happens When the Market Crushes Hope?
You can feel it.
Every time the market tries to bounce, hope creeps back in.
Every little uptick brings out the same old voices saying:
📢 “The bottom is in!”
📢 “It’s time to buy the dip!”
📢 “It’s the start of the next leg higher!”
But what happens when that hope gets crushed over and over again?
Traders get tired.
They stop trying.
They don’t want to hit the buy button anymore.
They don’t want to short stocks either.
They just… sit on their hands and wait.
And when that happens?
That’s when markets finally find a bottom.
I’m Not Saying We’re There Yet
Maybe we’re getting closer to a bottom.
But I’m not in the prediction business.
I’m in the reaction business.
Because I don’t trade what might happen.
I don’t trade what I think should happen.
I trade what I see happening right now.
And right now?
This is still a market that wants to go lower.
So while traders keep hoping for the bottom…
I’ll keep riding the trend.
And when this selloff finally runs out of steam?
I’ll be ready for the next opportunity.
Trade well,
Jack Carter
P.S. Have you seen the secretive $2.4 million order I spotted? Check it out here.
