Hey Traders,
It’s the first day of the second half of the year, and SPY is sitting at a new 52-week high.
Despite all the headlines lately — from the Fed to Iran to GDP numbers and stalled legislation — the market’s kept climbing. It hasn’t just bounced… it’s kept making higher highs and higher lows.
But today?
We’re seeing a little bit of a slowdown — and honestly, that’s exactly what I’d expect.
What Comes After a Strong Run
One of the things I teach my students is this:
When a stock or index pushes higher for 3 to 5 days in a row, it’s common to see a pullback or a breather right after.
That’s what we’re seeing in SPY today — and that’s not a red flag. That’s a healthy market doing what strong markets do.
This kind of behavior gives us an edge — if we know how to work with it.
Look for Strong Stocks in Strong Trends
This is the environment where trend-following setups really shine.
One I’ve been pointing out lately is Netflix (NFLX) — it’s been in a power trend, bouncing off support, respecting its structure.
When I see names like that, I don’t chase or guess. I structure my trades around what’s working:
- Covered calls
- Credit spreads
- Naked puts
Which one I choose depends on the setup — but they all start the same way: with a strong stock in a strong trend.
Use the Market as Your Compass
One more trick I use all the time:
I compare individual names to SPY.
If I see a stock like AVGO that’s performing even better than the main index, I know I’ve found something worth looking at.
You don’t have to overthink it — just stick with strength.
Don’t Forget to Protect Your Gains
If you’re already holding stocks that have made big runs lately, like NVDA or AVGO, you don’t need to sell them…
But you might want to buy a put as a form of protection.
It’s like insurance — if the market keeps going higher, great.
If it pulls back hard, you’ve already locked in your floor. You can either offload your shares at that strike price, or sell the put which will have skyrocketed in value.
Final Thought
Markets are at new highs, but that doesn’t mean they go straight up from here.
Strong trends need rest. Structure gives you an edge. And the right strategy makes all the difference.
Let’s attack the second half of this year with strength.
Trade well,
Jack Carter
P.S. One mystery trader just placed a $17,000,000 bet on NVDA. But is it BULLISH or BEARISH? Click to find out!
