Hey Traders,
April Fool’s Day… and this market’s acting like a damn prank.
But if you’ve been watching price action — really watching — it’s no joke.
We saw this coming.
The crossover of trend points back in early March kicked it all off. Then we got a little bounce a couple of weeks ago… and just yesterday? Right back down, hitting new six-month lows.
In fact, yesterday, we printed a classic lower daily low and a lower daily high — textbook bearish move.
If you’re paying attention to the charts, you know exactly what’s going on.
The market’s below all three major trend points — the 20-day, 50-day, and 200-day. And once that happens, there’s no support left underneath.
That means every rally — even the little 1–2 day bounces — is happening inside a bearish trend.
And while these “bull rallies” might look like recovery at first glance, they usually slam right into resistance and fizzle out fast.
It’s like bouncing a ball inside your house — the ceiling stops it every time. That ceiling? It’s overhead resistance. And right now, there’s a whole lot of it standing in the way.
What Would It Take to Turn Bullish Again?
To get bullish again, we’d need more than just a one-day pop.
We’d need to see prices climb back above all three trend lines, with a strong crossover to the upside, and real buying pressure behind it.
Until then, this market is stuck in a downtrend — and that’s how I’m trading it.
This Environment Favors Sellers
Here’s the thing about a market like this…
Even though it’s bearish, volatility is way up. The daily ranges are wider. That increases the price of options — and that’s a huge win for option sellers.
That’s why I’ve been hammering bear call spreads lately.
You sell a call up above where the stock is, buy another call one strike higher — and let the time decay work in your favor.
As long as the stock stays below your strikes, you’re golden.
It’s been an incredible strategy in this market.
I’ve also been doing a new setup on Tesla where we only need a 1–2% move anytime over 8 days to make a solid return.
And that trade doesn’t care whether Tesla moves up or down — just that it moves!
Don’t Chase Hope — Trade What’s Working
Bottom line: You’ve got to respect the trend.
You can’t cross your fingers and hope the market turns around.
If you trade like that, you’ll get chopped up.
Instead, look for the cleanest setups, trade with the trend, and stay disciplined.
Bear markets aren’t bad — they just require a different game plan. And right now? The sellers are in control.
Trade well,
Jack Carter
P.S. If you’re ready to start trading a killer strategy for this choppy market, click right here to see how I’m trading one of the choppiest stocks out there.
