Hey Traders,
I’ve mentioned this to you a lot before.
I don’t mean to sound repetitive, but it’s at the core of everything I do:
Before I ever put on a trade, I check the three big indices: SPY, QQQ, and DIA.
I want to know what the market is doing — because if all three are bullish, I’m trading bullish. If all three are bearish, I’m trading bearish. That’s it.
No hunches. No predictions. Just alignment.
I’ve said it before, and I’ll say it again: trading with the trend gives you an edge.
And in my research, I’ve found it can improve the odds of success by as much as 85%.
Where the Market Stands Right Now
Let’s talk about what I’m seeing today:
- SPY is at a new 52-week high, trending nicely above the 20-, 50-, and 200-day moving averages. The daily candles are getting a little narrow — which could mean a pullback — but overall it still looks strong.
- QQQ looks even better. Very strong momentum.
- DIA (the Dow) is lagging a bit, but still bullish overall.
So when all three indices are pointing up? I’m not messing around trying to short stuff.
I’m looking for bullish setups that I can sell options on.
Stop Trying to Find a Bottom
Now here’s where traders get into trouble…
They see a stock like Tesla (TSLA), and even though it’s just grinding sideways with no clear trend, they’re trying to “find the bottom.”
But here’s the deal: when a stock’s got no trend, there’s no compelling reason to trade it with my usual strategies.
You’re just sitting on dead money — or worse, setting yourself up to get whipsawed.
The Opportunity Cost Is Real
Remember the term “opportunity cost” from high school economics?
Opportunity cost is what you give up by choosing one thing over another.
If you’re trying to call a bottom on Tesla… that means you’re not trading something like AVGO — which, for me, is my second-largest position right now.
Why?
Because it’s got a beautiful uptrend. It gives me more ways to trade… more ways to win.
I can sell naked puts below support. I can run a bull put spread. I can even buy the stock and sell calls against it.
Options give you flexibility, but only when the trend is on your side.
Trade What’s Already Working
Too many people are wasting time on stocks that might bounce.
Why not just trade the ones that are already moving?
If the market is bullish — and it is — then find bullish stocks in strong trends.
Get on that moving train. Sell options while the stock trends higher. Collect the cash. Rinse and repeat.
That’s how I trade. That’s how I make money in this market.
And if you’re doing it with options? Even better. Because as an option seller, you’re stacking the odds in your favor from the moment you enter.
More on that soon.
Trade well,
Jack Carter
P.S. This might be the biggest breakthrough of my career→ A trading platform that automates my entire strategy. Check it out here.
