🚨 I’ll be live at 11:30 a.m. ET with Jeffry🚨
We’ll share the report with today’s top Income Harvester trades, break down our personal setups, discuss what’s moving markets and more [tap to join us for Market Masters]
Let me be honest with you: I don’t really know how to buy low and sell high.
Sounds ridiculous coming from someone who’s been trading since the 1980s, right? But honestly, I stopped trying years ago.
Instead, I prefer buying strength and selling into even more strength because, for me at least, it’s a much easier way to trade.
While most people are trying to find bargains or call the exact bottom, I’m usually looking for charts that are already trending higher. I want to see momentum, I want to see relative strength, and I want proof that buyers are already in control.
There are definitely traders who can consistently catch reversals and nail turning points. That’s a real skill. But it’s also a difficult one.
Personally, I’ve always found it easier to work with momentum instead of fighting against it.
When the Trend Is Already Working
Take Ciena (CIEN) for example.
I like that chart a lot, and yes, I’m long CIEN. Did I buy it at the absolute bottom? Not even close. I bought it because it was already trending and continuing to act well.
Same thing with Bloom Energy (BE). I ended up back in BE because the momentum kept showing up and the trend remained intact.
That doesn’t mean momentum traders ignore risk or blindly chase every move higher. Sometimes everything starts looking stretched. Sometimes the market feels a little too euphoric. And nobody is going to ring a bell at the top and tell you the move is over.
So you still have to stay aware of when things begin getting extended.
Within momentum trading itself, there are also different styles. I’m usually comfortable buying strength and letting trends continue working. Other traders are more patient and prefer waiting for pullbacks into support before entering.
Neither approach is necessarily wrong. They’re just different ways of participating in the same broader trend.
A lot of this comes down to having a repeatable process.
One easy way to screen for momentum is to look for stocks trading within roughly 5% to 10% of their highs. From there, you can narrow the list down and focus on names consistently making higher highs and higher lows.
That’s really the core of it. You’re not trying to predict a miracle reversal. You’re looking for stocks already proving they can attract buyers.
Simple tends to work better than overly complicated.
Why I Want the Stock — Not Just the Premium
This also shapes how I think about options.
When I really like a setup, I don’t necessarily want to just sell premium through naked puts and walk away. I actually want exposure to the underlying stock because if the trend keeps running, I want to participate in that upside.
And if I get assigned through a cash-secured put, that’s fine too. Now I own shares at a lower basis and can start selling covered calls against the position.
That’s part of why the wheel strategy appeals to me in momentum names. You’re not relying on perfect timing. You’re positioning yourself in stocks already acting well and giving yourself multiple ways to work the trade.
Buying low and selling high sounds great in theory.
In practice, though, it often means stepping in front of weak momentum and hoping something reverses. Sometimes it works. A lot of times it doesn’t.
I’d rather spend my time focusing on stocks already proving themselves than constantly trying to guess where a bottom might be.
So if you’ve been frustrated because you can’t perfectly time reversals, don’t beat yourself up over it. You don’t always need to buy the bottom to make money.
Sometimes the easier trade is simply finding strength and staying with it while the trend remains intact.
Now remember to join us live weekdays at 11:30 a.m. ET for Market Masters!
Market Masters exists to help traders build confidence and generate income through proven options education and strategies, live at 10:30 a.m. ET Monday-Friday.
Trade well,
Jack Carter
Jack Carter Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. Wall Street Is Moving Money Right Now for Summer
The next couple of months could bring some very unusual market action.
Every summer, Wall Street tends to shift capital into a different group of stocks while many traders are still focused on the usual names.
The interesting part?
These rotations aren’t random.
After more than a decade of research, trade data, and seasonal market analysis…
I built a detailed Summer Stock Calendar designed to track when certain stocks have historically started moving.
It includes specific stocks, specific setups, and even the periods where momentum has tended to appear most often.
I revealed the full breakdown during the Summer Stock Roundtable earlier today.
If you missed it, you still have another chance to access it free.
Inside, you’ll see:
• Stocks historically favored during the summer rotation
• Key dates tied to potential momentum shifts
• Setups I’ll be watching closely over the next few months
No guarantees in trading, of course.
But if you want the same summer roadmap I’m using myself…
