Hey Traders,
Today’s market activity gives us plenty to talk about, so let’s dive right in.
Let’s start with the two indexes that are showing strength…
First up, SPY:
SPY has been clawing its way back above all three key trend points, even after a slight pullback following a strong rally.
Anytime you see several consecutive bullish days, like we had up until Monday, it’s natural for the market to take a breather before continuing the trend. That’s exactly what SPY seems to be doing right now — cooling off before another potential run higher.
Next, DIA:
The Dow is also bullish and sitting pretty above all three trend points. It’s showing solid strength that matches what we’ve been seeing in SPY.
And finally, QQQ:
Tech is where things get interesting. QQQ is stuck between its trend points. Why?
Well, yesterday’s selloff shook things up, and it’s all thanks to some overblown news about a Chinese company claiming to have faster AI than anything in the U.S.
Overreaction or Opportunity?
Personally, I don’t buy into the AI news driving yesterday’s selloff. And if you’ve been around the markets long enough, you know how easily traders can overreact to headlines.
That said, we saw tech stocks like NVDA and AVGO take a dive yesterday — but today, they were already bouncing back.
Personally, I used the dip as a buying opportunity, picking up shares of NVDA and AVGO while they were down.
Meanwhile, we’re still seeing great trends in names like CHWY, META, and SPOT. Go look at those charts using the 3 indicators I always use.
These stocks are holding strong, giving us both a bullish trend and the volatility we need to collect juicy premium — perfect for trading in this environment.
Keep It Simple
With so much going on in the markets, it’s easy to get overwhelmed. My advice? Keep it simple.
Start with one trade on one stock each week. That’s it.
Focus on building out that trade and learning from it. The market doesn’t need you to trade every move — what matters is being smart and disciplined with your setups.
It’s an exciting time to be trading. Between tech drama, overreactions, and strong trends, the market is full of opportunities right now.
Just remember to stick to your plan, keep it simple, and focus on stacking the odds in your favor.
Trade well,
Jack Carter
P.S. No matter which way the market goes, Nate Tucci’s prepared with his Two Way Options strategy. I joined him today for his world premiere. Check it out here.
