Hey Traders,
Right now, this market is choppy as ever.
And when the headlines are all over the place — and momentum flips on a dime — technical analysis becomes more important than ever.
You’ve got to stay on the right side of the action, even when the signals are messy.
Let’s take a look at what’s happening…
SPY, QQQ, DIA — All Above Their Trendlines
Here’s the big development:
For the first time in a while, SPY, QQQ, and DIA are all above their 20-, 50-, and 200-day trendlines.
Now, they’re not in the right order yet — meaning the short-term (green) isn’t above the intermediate (blue), and the intermediate isn’t above the long-term (red). But that’s what we want to see eventually.
But from a short-term view? It’s a bullish sign that the price is now above all three trend lines.
It’s a step in the right direction.
One to Watch
One of my favorite setups right now is IBIT — the Bitcoin ETF.
We saw a clean bullish crossover recently, and like I always say, that’s usually a great indicator of direction.
Sure enough, IBIT exploded to the upside right after the trendline cross.
I’ve got a bunch of trades working on it right now — and it’s still one of my top bullish tickers at the moment.
Quick Word on Momentum and Exhaustion
Now just a heads-up — when you see five or six strong up days in a row, like we’re seeing on some charts, it’s not unusual for a little profit-taking to kick in.
It doesn’t mean the trend is reversing — just that you might see a pause or a pullback before it picks back up again.
Bigger Picture: More New Highs Than Lows
Across the board, I’m seeing more stocks hitting new highs than new lows — and that’s another bullish data point.
But for this market to really flip into a strong uptrend, we need those trendlines to align:
- Short-term on top
- Intermediate in the middle
- Long-term on the bottom
Until then, we’re heading in the right direction… but we’re not out of the woods yet.
What to Focus On
The volatility we’re seeing right now is pushing option premiums through the roof.
That’s great news if you’re selling premium — because income strategies like:
- Credit spreads
- Covered calls
- Even selling puts on stocks you wouldn’t mind owning
…are paying a lot more right now.
So while the indexes fight to sort out their trendlines, that’s where I’m focusing my attention.
Trade well,
Jack Carter
P.S. Now’s the perfect time to set up your Dream Portfolio. Are you in?
