This week, the market showed a blend of uncertain chart patterns and selective high-return trades. Clear volatility divergences were scarce, making patience and precision key. The Russell 2000 once again provided the strongest setups, while SPY and QQQ lacked conviction.

Key Highlights

• Scarcity of Strong Patterns: Across 15- and 30-minute charts, most setups lacked clarity. Only Russell 2000 consistently showed tradable divergences.

• Russell 2000 Options Payoffs: Small-cap strength produced options that ran from $0.06 to over $1.00+, yielding 10x–20x returns within hours.

• Other Indexes Underperformed: SPY and QQQ presented weak, unreliable signals with choppy action, making them unattractive for short-term trades.

Market Trends

Volatility: While UVXY and CVXY fluctuated heavily, only select divergences aligned cleanly with Russell 2000’s moves, confirming the small-cap index as the best volatility proxy.

Performance: Russell 2000 closed up over 2.5% on strength in small caps, while large caps like Amazon and Tesla struggled with sideways or weak momentum.

Best Trades of the Week

• Russell 2000 Calls: Morning setups at $0.06–$0.15 spiked to $1.00–$1.90, offering 10x–20x returns on fast moves.

• SPY / QQQ: Weak divergences appeared but lacked follow-through, resulting in minimal profit opportunities.

• Select Stock Plays: Alibaba, Microsoft, and Lamb Research showed relative strength, while Amazon lagged and Tesla remained flat.

Trading Philosophy

• Wait for Clear Patterns: Avoid forcing trades when divergences are weak or absent; patience is more profitable than guessing.

• Focus on Russell 2000: This index repeatedly provided the clearest volatility-aligned setups with consistent options payoffs.

• Timing is Critical: Most profitable trades emerged around 9:45 AM and in late afternoon, when volatility aligned with small-cap strength.

Looking Ahead

Expect continued Russell 2000 leadership as volatility shifts. With larger indexes showing weak signals, traders should stay selective, focusing only on high-confidence divergences for big returns.

P.S. Stay patient, trade selectively, and let the Russell 2000 guide your setups!

Out-of-the-Money (OTM) options are 

the secret weapon of top traders

Low upfront cost with explosive payoff potential. 

That’s why we’ve just released the expanded Trading OTM Options Course: 

8 lessons across 30 action-packed pages showing you exactly how to: 

• Pick the right ETFs (SPY, QQQ, IWM, UVXY, DIA, GDX) 
• Time entries with MACD divergence & high-probability patterns
• Manage risk so small losses never erase your big winners 

This isn’t theory—you’ll see real-world trades where 10¢ options surged to $1.20+ in just hours. 

👉 For a limited time only, you can grab the full course for just $59 (regularly $99). Don’t wait—once traders catch on to this special, the price goes back up. Here’s to stacking big wins from small bets.