SPY tracks the S&P 500 Index and is one of the most liquid ETFs in the world. Because of that liquidity, SPY call options are one of the most efficient ways to profit from market rebounds. When our Market Breadth Indicator signals that conditions are oversold, we often buy SPY calls two to three months out—giving enough time for the recovery to unfold. These trades can move quickly when the market turns up.

You don’t need to be a charting expert to use it.

• The yellow line shows the short-term (9-week) average of advancing stocks.
  • When it drops below 30, the market is oversold—often a good time to start building SPY call positions.
  • When it hits 15 or below, it’s what we call a “Mega Buy Zone.” These moments don’t come often, but historically, they’ve delivered some of the best returns of the year.
• The red line (50-week) and blue line (200-week) show the longer-term trend.
  • If the red stays above the blue, the broader trend is bullish, which strengthens the signal.
  • If the red dips below the blue, it suggests a tougher or recessionary market, so we approach yellow-at-30 setups more cautiously—but still watch closely for yellow-at-15 “mega buys,” which have worked even in bear markets.

Historically, when the yellow line enters a Mega Buy Zone, the S&P 500 (SPY) has often rebounded 8–15% within several weeks.
SPY calls 2–4 months out have frequently returned 150–500%, and sometimes more in fast recoveries—like the ones we saw in 2020 and 2022.

Of course, no system wins every time, but these patterns have repeated consistently for decades, giving traders a powerful statistical edge.

We teach this system, along with several others, inside the Trade Canary members area—and we share real-time alerts when our signals trigger, showing exactly how we’re positioning our own portfolios.

You’ll also learn how to:

• Spot legal insider trading activity before the crowd
• Detect unusual options activity that can reveal where big money is moving
• Quickly analyze any stock in seconds
• Backtest your own trading ideas against years of data
• Get instant alerts on your holdings so you can act before it’s too late

These are the same tools and insights once reserved for hedge funds—and now they’re available to individual traders like you.