Hey Traders,
Take a look at this picture.
Now let me ask you a question…
Is he diving into the pool… or did he just launch himself backwards out of the water?
You’re probably laughing right now — because c’mon, we all know the answer.
He’s diving in.
Because that’s what people do. That’s how gravity works. That’s how the world works.
So why am I talking about this?
Because reading charts works the same way.
To a lot of folks, technical analysis seems like voodoo or some kind of financial astrology. They think it’s just lines and wiggles and hocus pocus.
But it’s not. Not when you follow a few simple rules.
This Ain’t Magic — It’s Just Math
You don’t need a crystal ball to know when the market’s turning bearish.
All you’ve gotta do is look at the trend.
Right now, all three major indexes — SPY, DIA, and QQQ — are at or below my key moving averages: the 20-day, the 50-day, and the 200-day.
That’s what I call a full crossover to the downside.
It means any little rally we get is likely to smack right into resistance and roll back over.
And it takes a hell of a lot of buying pressure to climb back above all three — especially in a market that’s already breaking down.
So when you see this setup?
When charts look like this, you don’t bet on a bounce. You bet on the fall.
Too Many Traders Are Still Sitting On Their Hands
I get it — it’s hard to flip bearish. Emotionally, it feels wrong.
But this ain’t about feelings. It’s about facts.
And the fact is, if you’re sitting in cash right now… or worse, betting on a turnaround…
You’re missing some of the cleanest bearish setups we’ve had in months.
I’ve been leaning into bear call spreads and income trades on very clearly bearish-trending stocks.
I don’t even need to guess which way they’re going to move — I just need them to keep doing what they’re doing.
And guess what? It’s been working.
Final Word: Trust What You See
Look…
When you see a guy midair over a pool, you don’t sit there wondering if he’s jumping out backwards.
You just call it what it is.
Same goes for this market.
The charts are clear. The trend is down. The sellers are in charge.
So stop guessing — and start trading what you see.
Trade well,
Jack Carter
P.S. Here’s another very clear trend I’ve picked up on in TSLA’s options chain — click here to see how I’m exploiting it.
