Weekly Market Summary July 3, 2025
Jul 08, 2025
Weekly Market Summary July 3, 2025
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: Traders exploited sharp volatility from open, fake-out moves, and economic releases, achieving 3× to 8× returns on targeted option trades, mainly in Russell 2000 and SPY.
• Short-Term Scalping Was Crucial: Absent clear directional trends on daily timeframes, the best trades stemmed from short-lived exhaustion patterns on the 3-minute and 5-minute charts.
• Russell 2000 Leadership: IWM offered the most consistent setups, with rapid reversals and volume spikes during both early- and late-session windows.
Market Trends
Volatility: Prime trading signals appeared in post-spike reversals, fake-out setups, and last-hour divergences. Movements were fast and short-lived rather than part of trending markets.
Performance: Russell 2000 led the charge, while SPY and QQQ exhibited choppy action. Traders had to emphasize **reversion strategies** over breakout chasing.
Best Trades of the Week
• Russell 2000 Calls: Logged from **$0.20 to $1.00 (~5× return)** during a power-hour reversal after an economic swing. Execution hinged on a clean 5-minute volatility divergence.
• SPY Fake-Out Fade: A sharp morning breakout quickly reversed—capturing ~**6× return** in a micro-scalp on 3-minute setup.
• Intraday Reversal Scalps: Quick trades on exhaustion candles in IWM and QQQ on 3-minute charts consistently delivered **2–3× gains**, sidestepping longer-term noise.
Trading Philosophy
• Volatility Signals Drive Success: The top trades were all about sharp spike reversals, failed breakouts, and catalyst-induced price exhaustion.
• Adapt to Market Conditions: When daily trends were flat, scalping short-term exhaustion patterns provided the best edge.
• Timing is Critical: The early 30 minutes and the final hour of trading were prime time. Entries required precision—skipping guesswork for clear signals.
Looking Ahead
Moving forward, traders should lean into setups around session extremes, focusing on **Russell 2000** for sustained volatility and **SPY** for high-probability fade opportunities. With the market range-bound, successful scalping and reversion strategies—executed with tight risk—will remain vital. Momentum may require major macro news to build, so until then: trade the range, not the breakout.
P.S. Stick to the signals, stay sharp on timing, and keep risk tight!
|
|
Limited Seats Open to Non-Members of the Options Hunter
Trade the Fed:
Seize Market Volatility July 30, 2025
Watching the Market Reaction to the Fed
When the Federal Reserve speaks, the markets move—and for savvy options traders, that means opportunity.
Fed days are prime territory for high-probability trades. The sharp, immediate price movements triggered by these announcements can offer explosive profit potential. Whether it’s a surprise rate cut, or hawkish language, markets respond swiftly—and options traders can be in position to capitalize.
We use advanced pattern recognition techniques—including MACD Divergence, Double Tops & Bottoms, and multi-timeframe analysis—to catch these moves as they unfold in real time.
Sharp intraday volatility around the Fed Announcement June 18 especially postā2āÆPM ET
As anticipated, the June 18 Fed meeting unleashed a bout of sharp intraday volatility—commonly seen on Fed announcement days—with dramatic swings immediately following the 2āÆPM ET press release
Despite the Federal Reserve holding rates steady at 4.25–4.50% and projecting two quarter-point cuts later this year, markets reacted sharply to the updated accompanying commentary.
 |
Ready for the Next Fed Day?
Don’t miss the next opportunity to trade alongside Dale Wheatley during live market hours. Fed Days are unpredictable—but with the right tools, you don’t need to guess. You just need to recognize the setup.
ā”ļø Join our next live session and trade the market reaction in real time.
 |