Hey Traders,
Another day, another fake rally getting smacked down.
We talked about this last week — the market ran into resistance, and now it’s rolling over again.
📉 SPY is hitting resistance at a key level.
📉 DIA is confirming the downtrend.
📉 QQQ? It’s the most bearish of them all.
So what’s the game plan?
Simple. When the market is weak, trade weak stocks.
The Power of a Market-Driven Approach
Too many traders try to fight the market.
They look for stocks that “should” go up even when the broader market is screaming lower.
Not me.
I trade with the market — not against it.
That means when the major indexes are trending down, I’m not looking for stocks to buy.
I’m looking for stocks that are already weak and primed to go lower.
And guess what? There are plenty of them right now.
This Is What a Perfect Downtrend Looks Like
I’ve been scanning the market, and here’s what I’m seeing:
📌 Stock after stock running into resistance and turning lower.
📌 Short-term trendlines acting as rejection points.
📌 Bearish setups forming left and right.
These setups are textbook perfect for:
✅ Buying puts – If you want a high-powered way to ride the drop.
✅ Shorting the stock – If you prefer a straight short play.
✅ Selling bear call spreads – My personal favorite way to collect income on a weak stock.
The key is finding stocks that aren’t just dropping — but trending lower.
I’m talking about stocks that rally into resistance, get rejected, and keep moving down.
Those are the goldmine setups in a market like this.
Final Thoughts
A market-driven approach is what separates amateurs from pros.
If you try to trade against the market, you’re going to struggle.
But if you align your trades with what the market is already doing, you stack the odds heavily in your favor.
Right now?
The market is weak. So I’m trading weak stocks.
And I’ll keep doing it until the trend changes.
Trade smart. Trade with the market.
Trade well,
Jack Carter
P.S. Nate Tucci’s got his own unique way of targeting overnight gains in this markets. Check it out.
