Hey traders,
Quick market check the way I do it every morning.
I pull up a 6-month chart of the big three — SPY, DIA, QQQ — with my three Trend Points (short-, mid-, and long-term trend lines).
All three are riding above those lines and have been since the prior crossover. That means the condition is bullish, plain and simple. No guesswork — just price action doing what it’s supposed to do.
Condition vs. Strength
Condition tells me the direction; strength tells me if there’s real participation.
Today, I’m seeing ~79 new highs vs. 18 new lows on my screen — that’s buyers in control under the surface, not just on the big indexes.
What’s Working Right Now
Leaders are doing what leaders do. NVDA printed a fresh all-time high. Arista Networks (ANET) pushed to a new high as well — I’m long ANET. When leaders keep making highs during a bullish phase, I stay with them.
The Wild Card: Tesla Playing Catch-Up
One name that hasn’t made a new high yet is Tesla (TSLA).
I think that can change, and I’m positioning for a catch-up move using TSLL, the 2× leveraged Tesla ETF.
The logic is simple: if TSLA pops 10%, TSLL tends to move about twice that. Leverage cuts both ways, so respect the risk — the same math that boosts gains also magnifies losses.
Plain-English on TSLL
- TSLL is a leveraged ETF that aims for roughly 2× Tesla’s daily move — up or down.
- That makes it a tactical tool, not a forever hold.
- Position size like a pro and know your exit before you enter.
How I Trade This Backdrop
With bullish condition and broad strength, I keep it blue-collar simple:
- Covered calls on leaders I already own (get paid to hold).
- Naked puts on strong names I’d like to own lower (get paid to wait).
- Bullish credit spreads for defined risk (let time decay do work).
And for that Tesla catch-up idea, TSLL is my levered way to press — with sizing discipline and a short leash.
Bottom Line
The market’s giving us a friendly runway: trend up, strength under the hood, leaders leading.
I’m staying with what’s working and keeping my risk tight on anything levered.
Trade well,
Jack Carter
P.S. Here’s my case for why the market is headed higher in Q4 — and how I plan to take advantage of it.
