Hey Traders,
Let me give you a quick head start today — because we’re in a market that’s starting to reward trend-followers again.
First, let’s talk big picture. The S&P 500 (SPY) is above all three of my trend points.
We just had a crossover to the upside on the trendlines, and that’s laying the groundwork for a new bullish rally. I think we’ll see SPY get over 600 real soon.
The Nasdaq (QQQ) — the tech-heavy index — has the most action right now. Same story there: all three trend points have crossed to the upside.
The setup is bullish. It’s probably going to make a new high as well, but maybe not as fast as SPY. Might be a little more up and down, but it’s heading there.
As for the DIA — the Dow — it’s just now getting a bullish crossover.
But the industrials aren’t that exciting right now, so I’m not seeing a ton of opportunity there.
Where I am seeing it? Tech.
Take Broadcom (AVGO) — I’m long this one.
It’s been ripping higher. Might slow down a bit from here, but it’s still solidly bullish. It’s in a great trend.
Same goes for Chewy (CHWY), which has been steadily chugging along…
CrowdStrike (CRWD) — a little more volatile, but showing strength…
eBay (EBAY), making a nice new high…
Netflix (NFLX), another new high — that’s been a really impressive move.
And Roblox (RBLX) is just ripping!
Snowflake (SNOW) pushing higher:
and Zscaler (ZS) too
These are names that meet my basic screen:
- They trade over $15
- They average at least 500,000 shares per day
- They’re listed on a major exchange
And right now, a solid number of them are making new highs.
It’s not an extremely broad rally — but compared to the number of stocks in downtrends (only 3 today), it’s a healthy shift. That tells you the tone of the market is turning more bullish.
So what do you do?
Stick with the ones in good trends. That’s always step one.
Then look for ways to optimize with options.
If you’ve been following along, you’ll know my preferred setups involve naked puts, covered calls and bull put spreads…
Basically strategies that:
- involve collecting cash instantly, and
- having a nice big cushion where the stock can move against us and we’ll still come out with a winner.
This is the kind of market that rewards discipline. Don’t chase the noise. Follow the trend.
Trade well,
Jack Carter
P.S. Did you see the unique new way I’m trading one of the most volatile stocks on the market? Check it out here.
