Hey Traders,
The S&P 500 (SPY) hit another new high today.
If you’ve been in the market, you’ve been making money. Period.
But I got to tell you — I got a call from a buddy this morning who wasn’t too happy.
He’s one of those guys who calls when the market’s on a tear… mostly to complain.
Turns out the market’s “eaten his lunch” twice now.
Why? Because he’s stuck on this idea that things need to “make sense.”
“It Makes No Sense” — and Why That’s Irrelevant
For years, this guy’s been saying stuff like:
“Tesla at $400? Makes no sense. The P/E is too high. The sales-to-book is out of whack. Blah, blah, blah.”
Look, I’m not saying he’s wrong about the fundamentals — but here’s the thing…
It doesn’t need to make sense for you to make dollars.
You don’t get paid for agreeing with a company’s balance sheet.
You get paid for trading what you see.
And right now? A whole lot of stocks are making new highs.
Does it “make sense” for every one of them? Probably not.
But the market doesn’t care.
Trade the Chart, Not the Story
Everything you need to know about a stock is already baked into its price.
If a stock or an index is trending up, that’s all the info you really need.
Price above my Trend Points? Sloping higher? That’s my green light.
No need to overthink it.
Right now, the market’s heading higher. That’s where the money’s at.
Why Your Calls Sometimes Don’t Move
Now, quick side note… remember when I told you about why options sometimes don’t budge even when the stock does?
It’s because the expected move is already priced into the option.
So yeah — the stock jumps, but your call stays flat. Frustrating, right?
The real killer in all this is something called time decay.
If you own options, time is eating away at their value every single day… and it accelerates in the last week before expiration.
Pick an out-of-the-money option today and check back Friday — odds are, if it’s still out of the money, it’ll be worth next to nothing.
Bottom Line
Don’t overcomplicate it.
Don’t wait for everything to “make sense” before you pull the trigger.
Trade what’s in front of you. Trade what you see.
Because at the end of the day, the market doesn’t pay you for being right… it pays you for being in the right place at the right time.
Trade well,
Jack Carter
P.S. One of the things that is making less and less sense is tech… check out my free class on the possible Tech Sector Breakdown.
