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Something’s been nagging at me lately, and I need to address it head-on…
Traders have asked if there’s a way to fade strong up days — essentially running a call monetization strategy on the opposite side of what I normally teach. I’m going to be blunt…
That’s exactly the kind of thinking that gets you steamrolled in a bull market like this.
I’m sticking with buying dips rather than trying to call tops because the structure of the modern market increasingly rewards that approach.
The Modern Market’s Bullish Asymmetry
When this market rips higher on an outlier day, it doesn’t necessarily reverse the next day. More often, it surges and then moves sideways for a day or two.
Compare that with sharp declines, where we regularly see intraday reversals or next-day bounces.
That asymmetry isn’t accidental. Algorithmic trading, systematic flows and short-dated options now shape how the market moves. More than 60% of total SPX options volume is tied to 0DTE contracts.
With so much capital focused on the same session, hedging activity can accelerate intraday moves, amplify volatility and help turn temporary weakness into a tradeable setup.
In a bull regime, the algos and quants are programmed to buy dips. That doesn’t mean every decline immediately reverses, but it creates repeatable conditions in which weakness can offer better risk-to-reward than fading strength.
The upside risk is also difficult to contain. Trump can move the market with a single announcement. Do you really want to position yourself against that? I don’t.
With SPX around 7,700 and approaching 8,000, it would need to fall below roughly 6,800 to turn negative for the year. I view that as a lower-probability outcome given the forces supporting prices.
Execution Matters More Than Prediction
Earnings remain strong, the Federal Reserve isn’t raising rates and monetary policy is accommodative. Bond market jitters may create temporary volatility, like yesterday, but the broader setup still favors higher prices. Historically, a strong first half also tends to support the second half.
That’s why I focus on execution rather than proving I can call the exact top. I’m not interested in chasing every rally or blindly buying every red candle. I wait for weakness to create a defined setup, manage the risk and let the market’s bullish momentum do the heavy lifting.
That discipline matters beyond any single trade. If better execution can produce an extra $11,000 or $15,000 a year, that can meaningfully offset rising household costs and other financial pressures. But those gains come from consistency — not from forcing contrarian trades because the market looks too high.
Could SPX reach 8,000 or higher by year-end? Most likely, yes. I don’t believe we’re near the top or the end of the broader opportunity.
The market can keep climbing a wall of worry. Don’t fight that reality — position yourself to profit from it.
I’ll see you in the markets.
Chris Pulver
Chris Pulver TradingÂ
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.Â
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