Hey traders,
If you’ve been with me for a bit, you know I always start my day by checking the market’s pulse.
Before I make any moves, I want to know the big picture — the direction of the broad market.
Now, I know some folks dive right into stocks without even glancing at the market, but here’s the thing… that’s like setting sail without knowing if there’s a storm brewing.
The market’s mood matters, and it’s going to influence whether I lean toward bullish, bearish, or even sideways strategies.
So, how do I kick things off? Simple. I pull up SPY, DIA, and QQQ — the major indexes.
Take a look at their charts:
SPY
The SPY is currently bullish, because it’s sitting above all three trendlines: the green, short-term trendling, the blue medium-term trendline and the red, long-term trendline.

You can see how it had some trouble back between mid-July and early August. It came all the way down to nearly touch its red, long term trend line.
But as of right now it’s in a pretty strong trend.
DIA
The DIA is not nearly as bullish as the SPY. You can see that it is currently below its green, short-term trend line, so that’s showing some weakness right now.

QQQ
But it’s the QQQ, packed with tech stocks, that’s caught my eye.

Tech’s in the driver’s seat, folks, and I believe we’re going to see some solid moves here in Q4.
It did have a massive drawdown, dipping below even its red long-term trendline during that same mid-July to early August timeframe as the other indexes.
So this one is bullish right now, but we can see over the last 6 months it’s been pretty volatile.
Hunting for the Perfect Stock
Once I’ve got a feel for the market, it’s time to drill down to find stocks that match the general mood of the market.
With the 3 indexes being “mostly” bullish, I’m going to be looking for stocks going higher.
Now, I’m not looking for any particular stock — I’m looking for stocks that fit my criteria like a glove.
I want stocks with a steady, upward trend, not the ones bouncing all over the place with a lot of volatility.
BAH is a good example of what to avoid:

Notice how it had a big gap down in mid-July and a big gap up just a few days ago? That stock is jumping around and it’s something I would avoid.
Smooth trends is where the magic of income trading comes in because a stock in this kind of trend can open doors to all kinds of high-probability strategies.
Let me give you an example of a great one.
Probably the best example of a smooth, solid, upward trend you’ll ever see: IRM.

This ticker’s a prime example of what I like to see.
Notice it’s got almost no wild jumps, no crazy drops, just a smooth, upward climb that bounces nicely off its green, short-term trend line for months and months.
When you’ve got a stock moving like that, you’ve got a ton of possibilities.
You can buy the stock, sell a covered call, or even use a credit spread if you don’t want to buy any shares. When a stock’s moving up nice and steady, the possibilities are endless.
Why a Steady Trend Matters
Now, you might ask, “Jack, why do you avoid stocks that jump around?”
Because when you’re trading for income, consistency is key.
A steady trend keeps your win rate higher and gives you better prices on your options.
A stock in a clear, upward trend is like a well-oiled machine — it’s predictable, and you can build a game plan around it.
So, before you jump into your next trade, check the market’s temperature, find the right stock, and remember — we’re in this for steady, reliable wins. That’s how we build wealth in the long run.
Happy Trading,
Jack Carter
P.S. Google reported earnings today. And here’s the game plan I’m following — now and into the future.