Hey Traders,
You don’t have to be psychic to know what this market was gonna do.
Back on March 19, I told you there was more downside ahead.
Some folks thought I was nuts.
“The bottom’s in!” they said. They wanted to believe.
But I wasn’t guessing — I was just reading the chart.
Because when you’ve been in this game as long as I have, you learn to trust the signals. And one of the clearest?
- When the 20-day moving average crosses below the 50-day…
- Then drops below the 200-day…
- And price stays under all of it?
That’s a full bearish alignment. No two ways about it.
You could cover my eyes and stick cotton in my ears.
I don’t need CNBC or some expert panel telling me what’s going on.
That stack of trendlines above price? That’s all I need.
Because when price falls below support… and those same levels turn into resistance?
It doesn’t matter if it’s tariffs, AI fatigue, inflation, or moon cheese.
The market’s going to behave the same way.
The rallies will be weak… The bounces will stall… And the trendlines act like a ceiling that keeps falling, knocking the price back down over and over.
That’s exactly what happened this month — over and over again.
A 10% rally in a single day… and it hit the 20-day like a brick wall.
Tried again. Same thing.
Tried a third time. Bounced its head again — and back down we went.
People keep asking me, “Jack, when do we go back up?”
I don’t know. More importantly? I don’t need to know.
Because while they’re sitting on the sidelines or trying to pick a bottom, I’ve been making money on the downside for seven straight weeks.
How?
I trade bearish setups on bearish stocks.
And instead of buying puts or making some directionally aggressive bet… I use a simple strategy:
- I sell bear call spreads above resistance
- I collect income up front
- And I structure the trade to expire worthless a few days later
Like I always say: I don’t need to be right — I just need to be smart.
One of my favorite setups?
Enter a spread on Tuesday… Get paid immediately… And let it ride to Friday.
That’s it.
In fact, I placed a trade like that yesterday on NVDA. And even with today’s “big pop”, it hasn’t turned this trade into a loser.
And it’s already halfway through its lifespan…
Meanwhile, if I had bought flowers yesterday? They’d be still sitting on the counter, looking beautiful.
But this trade?
It’s already close to expiration — and if all goes according to plan, it’ll be dead and gone by Friday… leaving me with a clean win and a pocketful of cash
So it’s not just me exaggerating when I say these trades wilt faster than flowers.
And I love that because, no, I don’t make “predictions.”
I don’t need to be in the market for long periods of time.
I just follow the trend. (bearish)
Sell into resistance. (above the trendlines)
And keep my trades short and smart. (3 days max)
And if that sounds simple… it’s because it is.
Trade well,
Jack Carter
P.S. Tesla’s volatility is the key to how this trade works so consistently well.
