🚨 I’ll be live at 11:30 a.m. ET with Jeffry Turnmire🚨
We’ll talk about getting started in the triple income system and more [tap to join us for Market Masters]
Over the weekend, something happened in the Gulf of Oman that got a lot of traders excited.
Light crude spiked to $115. Screens lit up, alerts started firing and traders everywhere rushed in thinking they had found the next big move.
I didn’t touch it.
Not because I didn’t see the move — I did. But because I’ve never traded oil in my life, and I’m not about to start now.
This Spike Was Built On Noise, Not Supply
There is no shortage of oil. Let me say that again: There is no shortage.
Oil is everywhere, and someone will always produce more. The idea that this rally was driven by a true supply shortage never made sense to me.
What we saw instead was a surge driven by headlines. Traders were reacting to talk of chokepoints, panic around the Strait of Hormuz and warnings about 20% of global oil flows potentially being disrupted.
Meanwhile, Saudi Arabia was already rerouting shipments through the Red Sea. Supply never actually stopped moving.
That’s why moves like this are dangerous. They’re fueled by emotion, not fundamentals, and when emotion drives the trade, the reversal can and will happen just as quickly.
The Spike Already Played Out
On Monday, we said during Market Masters that the move looked stretched and unlikely to hold.
Within a day, the market proved the point.
By Tuesday, markets opened below $90 per barrel — a massive $25 pullback, just as I anticipated.
This is the pattern I’ve seen repeat for decades. A geopolitical headline sparks a surge, traders rush in chasing momentum and then the move burns out once the panic fades.
The traders who arrive late are the ones left holding the bag.
Stick To What Works
The truth is I don’t need to chase oil to make money.
I focus on the strategies I know best — stocks, options and the wheel strategy. Selling puts on companies I’m comfortable owning and running covered calls on shares already in my portfolio.
That’s my lane, and I’m staying in it.
Longevity in trading doesn’t come from jumping on every headline-driven spike. It comes from knowing which opportunities fit your process and ignoring the ones that don’t.
Oil has never been part of my playbook. And when it spiked to $115, it wasn’t the time to start experimenting.
You can chase the shiny object if you want. But as this move just showed, those trades can reverse fast — and the last traders in are usually the ones stuck at the top.
Trade well,
Jack Carter
Jack Carter Trading
Follow along and join the conversation for real-time analysis, trade ideas, market insights and more!
- Telegram: //t.me/jackcartertrading1Â
- YouTube: //www.youtube.com/@FinancialWarsÂ
Important Note: No one from the ProsperityPub team or Jack Carter Trading will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. This Trading Approach Goes Against Everything You Know
Lean closer…
What you’re about to see goes against everything you’ve been taught about options — flipping traditional wisdom upside down.
Here’s what’s actually incredible. This setup is built for the exact kind of volatility we’re seeing in today’s market.
Here’s what’s actually incredible. This setup is built for the exact kind of volatility we’re seeing in today’s market.
It’s already weathered some of the market’s most volatile storms in the past, and I’m trusting it to take us through these fresh yet chaotic waters.
I can’t make absolute trading guarantees, of course.
But if you’d like to see how I plan to go after the market armed with this unconventional setup — and even tag along if you choose…
