Hey Traders,
Last week someone was asking me about the whole Iran situation and how it relates to the markets.
I said Iran was a paper tiger — all bark, no real bite.
Well, over the weekend, a squadron of B2 bombers dropped ordnance on Iranian nuclear targets. This was the kind of event that could’ve sparked a panic.
But take a look at the market’s reaction…
Sure, we saw a dip. All three major indexes — SPY, DIA, and QQQ — went lower today. But what happened next?
They bounced.
The SPY and QQQ bounced right at their 20 day trendlines, too.
Right on schedule. And as I’m writing this, they’re trading higher than they opened.
That tells me two things:
- The market isn’t scared.
- Traders who panicked missed the move.
Now don’t get me wrong — I don’t trade based on the news. But I watch how the market reacts to it.
If there were real fear under the surface, we wouldn’t be bouncing like this.
You can see the strength is still there — and if you’re using a system that works off trend and structure like I do, this is a great reminder of why we trust the charts and not the headlines.
Because while others are wondering if this is “the big one”… I’m over here selling premium and collecting income on trades that give me room to be wrong and still get paid.
Markets took a punch — and barely flinched.
That tells me all I need to know.
Trade well,
Jack Carter
P.S. Volatility like this is exactly why options premiums are so juicy right now. While most folks are panicking over headlines, I’m collecting cash. If you want to see how I’m doing it — and how you can, too — check it out here and I’ll walk you through the whole strategy.
