This week, the market presented a mix of high-return trading opportunities and sideways movement on larger timeframes. Volatility divergences remained the best trading signals, while traders had to adapt to slower sessions by focusing on short-term setups.

Key Highlights

• Volatility Divergence Success: Identified late-session volatility divergences leading to 1,200% returns on Russell 2000 calls.

• Short-Term Scalping Was Crucial: With hourly and daily charts lacking direction, the best trades emerged from 3-minute and 5-minute charts.

• Russell 2000 Leadership: This index outperformed others, providing better trading setups and consistent opportunities.

Market Trends

Volatility: Double-top and double-bottom divergences remained the most reliable signals, especially during the last hours of the trading session.

Performance: Russell 2000 led the market, providing stronger trades compared to SPY and QQQ, which showed mixed signals.

Best Trades of the Week

• Russell 2000 Calls: Bought at $0.15, surged to $1.00 (~6x return), settling at $0.40 amid market volatility.

• SPY Calls: Afternoon volatility divergence confirmed 8x returns on quick scalping setups.

• Short-Term Scalps: Consistent profits came from 3-minute and 5-minute charts, while longer timeframes remained flat.

Trading Philosophy

• Volatility Signals Drive Success: The most profitable trades occurred when identifying volatility divergences, particularly during key trading hours.

• Adapt to Market Conditions: In choppy or unclear markets, traders found success by focusing on short-term timeframes and avoiding forced trades.

• Timing is Critical: Major trade opportunities emerged in the first and last hours of trading, emphasizing the importance of precise execution.

Looking Ahead

Traders should continue focusing on Russell 2000 for its better follow-through on volatility signals. Expect clearer patterns to emerge, but remain patient until high-confidence setups present themselves.

P.S. Stay patient, trust the signals, and execute with confidence!