Weekly Market Summary: 

February 21, 2025

 This week, the market presented a mix of **high-return opportunities** and **unclear trading days**. Volatility divergences remained the most reliable signals, while **patience** was necessary during slow market conditions.

Key Highlights

• Short-Term Divergences: Some days provided **fast 8x–17x trades**, while others lacked clear setups.

• Market Weakness: SPY and QQQ showed **limited movement** on longer timeframes, making **quick trades the best strategy**.

• Patience Paid Off: Traders who waited for **strong divergences** were rewarded with **high-confidence entries**.

Market Trends

Volatility: Divergence-based setups remained **the most predictable trade signals**. However, weak confirmations led to **choppy trades** on some days.

Performance: SPY, QQQ, and Russell 2000 offered **small but profitable moves**, while longer-term charts lacked direction.

Best Trades of the Week

• SPY 605 Calls: Bought at **$0.05**, surged to **$0.60 (~12x returns)** after a volatility bottom.

• QQQ 520 Puts: Bought at **$0.07**, peaked at **$1.20 (~17x returns)** after a clear downward divergence.

• SPY 608 Puts: Moved from **$0.07 to $0.56 (~8x returns)** despite weak confirmations.

• Russell 2000 225 Calls: Bought at **$0.04**, climbed to **$0.37 (~9x returns)** but lacked strong confirmation.

Trading Philosophy

• Stick to Strong Divergences: The highest-return trades occurred when **volatility and price aligned**.

• Avoid Weak Signals: Days without clear divergences resulted in **choppy, low-confidence trades**.

• Short-Term Focus: With long-term charts showing **sideways action**, short-term setups were the best opportunities.

Looking Ahead

Traders should continue focusing on SPY, QQQ, and Russell 2000, prioritizing **short-term divergence setups**. Waiting for the right confirmations will be crucial for **maximizing profitability**.

P.S. Discipline and patience will lead to the biggest gains!

QQQ Hourly divergence down on end of day 2-19-25