I'm officially scuba certified :)
Leave it to $Maxwell to relate scuba diving to the stock market, but stick with me for a minute, let's make this make sense and build out our trade plan together.
This certification process took way more time (and money) than I expected... but it was completely worth it. Saw a massive sea turtle, a lobster, and a shark offshore. I have 100% unlocked another expensive hobby.
The very first rule they drill into your head is simple: Breathe slow. Never hold your breath.
Panic burns through your air supply. Slow, deliberate breathing keeps you down there longer so you can actually take it all in.
Simple in principle.. Harder in execution especially when you're 60 feet down and you are excited by the turtle and nervous about shark.
We did training dives in murky lake, water visibility was terrible where you couldn't see much past your own hands. You don't call off the dive; you just adapt. You check your compass and gauges more often, stay glued to your dive buddy, and slow your pace way down.
This should all feel familiar when you think about the stock market and trading. Emotions, keeping calm paying attention to VIX and the fear and greed index...
This market feels a lot like that muddy lake.
The S&P closed above 7,800 on Tuesday new all time highs again. Choppy waters Wednesday and Thursday.. The Nasdaq also had another record high. New all time highs make you feel like conditions look calm and sunny.
But look underneath:
RSP which is the equal weighted version of SPY is not anywhere near all time highs:
The rally is narrow. A handful of mega-cap tech names are carrying the entire weight while the broader market (especially small caps) lags below its 100-day moving average
The 10-year Treasury yield is hovering around 5.3%, crude is pushing $100, and yet the VIX is sleeping quietly around 15–16.
Indices sitting at all-time highs while borrowing costs press higher? That’s murky lake water.
So what should we do? The same thing you do when visibility drops to zero:
- Check the gauges: Keep position sizes small and use some spreads instead of naked puts. Watch the fear and greed index. Wait for VIX to spike before adding risk.
- Slow Down: Don't chase runners or force setups out of FOMO. Let the prices come to you. I've been setting up trades in the inner circle and waiting for them to come off before we add more!
- Keep breathing: Stay in the game, collect your premium, and let math do the heavy lifting. Cash is a position. Leverage is powerful, but only when conditions make sense.
I’m not getting out of the water. I’m just conserving air. Remember no one has made a dime panicking. So lean on your buddies (Good Kids Trading Community) and let the system work.
If you have a busy career and patient capital, you don't need to predict where the current goes next. You just need a framework that protects you when visibility is low. That's what we do.
It's the entire point of trading this way!! So the positions run on autopilot while you're 60 feet underwater looking at a turtle, or spending the say at Disney World which is exactly what I did this week!!!
Turning knowledge into wealth,
$Maxwell
P.S. What’s the expensive hobby you keep putting off because you "don't have the time"? Hit reply and let me know!!! I'm collecting ideas (bonus point if it not expensive).
If you are ready to take your trading to the next level come see us in the Good Kids Trading Discord. Invest in your future by joining me in the Inner Circle for Weekly Option Newsletter and Monday's Weekly Income Newsletter.
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