Weekly Market Summary: 

February 14, 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

• Double-Top Volatility Signal: A late-session reversal in volatility resulted in **1,000%+ returns** on Russell 2000 calls.

• Short-Term Setups Were Key: With **hourly and daily charts moving sideways**, profitable trades came from **3-minute and 5-minute charts**.

• Mixed Market Conditions: Some days had **explosive trades**, while others lacked direction, requiring **patience and adaptability**.

Market Trends

Volatility: The best setups occurred **when volatility formed divergences**, particularly late in the trading session.

Performance: Russell 2000, SPY, and QQQ provided **consistent opportunities**, but traders had to adjust to slow sessions by focusing on short-term timeframes.

Best Trades of the Week

• Russell 2000 225 Calls: Bought at **$0.10**, surged to **$1.29 (~1,200% return)** after a double-top volatility divergence.

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

• QQQ 530 Calls: Moved from **$0.05 to $0.70 (~14x returns)** in the final hour of trading.

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

• Short-Term Scalps: 3-minute and 5-minute charts provided **quick trade opportunities**, while **hourly charts remained flat**.

Trading Philosophy

• Volatility is the key indicator: Double tops and bottoms in volatility provide the highest-confidence trades.

• Adapt to Market Conditions: Short-term signals became more important when larger timeframes lacked direction.

• Execute with Precision: The biggest trades happened in **the first and last hours of trading**, reinforcing the importance of **timing and discipline**.

UVXY 2m divergence down on volatility = markets go up

IWM 225 calls expiring 2-13-25 moved from 10c to $1.20