Hey Traders,
Let me ask you something:
Would you try to drive through a blizzard with no visibility? Or cross a busy intersection blindfolded?
No? Then why trade a market you can’t see clearly?
Every trader needs to know this:
There’s a big difference between the easiest markets to trade and the hardest. And if you don’t know which one you’re in right now… you’re just guessing.
Let me show you what I mean.
The Easiest Market to Trade
When you’ve got all three trendlines (short-term, intermediate, and long-term) pointing up in a perfect stack — that’s the kind of market I dream about. Like in this chart:
Higher highs, higher lows, strong momentum.
If this was the S&P 500, it would mean hundreds of stocks were trending just like it. And tech stocks would likely be doing even better.
In that kind of bull market? You don’t have to overthink it. Just buy strong stocks, place a stop 7% below your entry, and look for a double-digit gain.
Same goes for a clean bear market — just flip it, like this:
Lower highs, lower lows, EMAs stacked in the opposite direction.
When the market is trending clearly in either direction, directional trades work great.
Stocks move in one direction. Your trades have clear targets. It’s the easiest market to trade.
But that’s not what we have right now.
The Hardest Market to Trade
The market right now is a different beast:
The S&P is caught between trendlines. The short-term EMA is acting like a floor… and the long-term EMA is acting like a ceiling.
That means we’ve got a market with no clear trend. Just volatility.
And that’s the hardest kind of market to trade.
You can’t go long. You can’t go short. You just get whipped around. It’s like trying to trade a bouncing ball.
What to Do Instead
Here’s the good news: even though the market’s stuck, volatility is still high.
And for traders like us, that opens up a different kind of opportunity.
Because in this kind of market, it’s not about picking stocks — it’s about picking the right strategy.
Covered calls. Credit spreads. Short-term premium selling strategies.
These are the tools that work when the market’s directionless but volatile.
Why?
Because market makers are pumping up option prices to protect themselves from all the chop.
That makes those options expensive — and that’s a gift to option sellers.
Final Thoughts
Every morning, I start with the same question:
“What kind of market are we in?”
Not what I want to see. Not what the news is saying. Just a clear-eyed read of the trendlines.
And if I see the market stuck, like it is now?
I don’t force a directional trade.
I pivot. I focus on structure. And I use a strategy that gives me an edge in this kind of market.
That’s the difference between guessing and trading with confidence.
Trade well,
Jack Carter
P.S. Here’s exactly how I’m playing the volatile market chop we’re seeing.
