Key Highlights

• Volatility Divergence Signals: Both upside and downside divergences created high-confidence trades, especially in the first and last hours of the session.

• Late-Session Reversals: The best setups emerged in the afternoon, with SPY, QQQ, and Russell 2000 aligning for rapid price movements.

• Quick Turnarounds: SPY 601 Puts surged from $0.09 to $1.85 (~20x returns), while QQQ Calls jumped from $0.05 to $0.70 (~14x returns).

Market Trends

Volatility: The market had sharp price movements when divergence confirmations aligned. Several sessions had limited activity, reinforcing the need for patience.

Performance: SPY and QQQ provided the best opportunities, with short-term charts confirming reversals. High timeframes (4-hour and daily) proved useful for multi-day trade setups.

Best Trades of the Week

• SPY 601 Puts: Entered at $0.09, surged to $1.85 (~20x returns) after a 15-minute downside divergence.

• QQQ 530 Calls: Traded from $0.05 to $0.70 (~14x returns) following a late-session reversal.

• SPY 607 Calls: Jumped from $0.05 to $0.40 (~8x returns) after an afternoon divergence confirmation.

• Russell 2000 229 Calls: Moved from $0.03 to $0.08 (~2.5x returns) but lacked strong technical confirmation.

• SPY & QQQ Double-Bottom Trades: A midday technical setup confirmed a strong upside move, leading to rapid gains.

Trading Philosophy

• Stick to Divergence Confirmations: The best trades occurred when volatility and price patterns aligned.

• Late-Session Trades: Many of the week’s highest-return trades took place in the final hour.

• Trust the High Timeframes: 4-hour and daily charts provided strong confirmations for multi-day moves.

Looking Ahead

Traders should continue focusing on SPY, QQQ, and Russell 2000, prioritizing clear divergence setups. With volatility expected to remain active, waiting for high-confidence trades will be key.

P.S. Stay disciplined—big opportunities will come to those who wait!

2-6-25 UVXY 2-minute divergnece up

2-6-25 QQQ 2-minute up divergence