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: Identified late-session volatility divergences leading to **1,200% returns** on Russell 2000 calls.

• Short-Term Scalping Was Crucial: With **hourly and daily charts lacking direction**, the best trades emerged from **3-minute and 5-minute charts**.

• Russell 2000 Leadership: This index outperformed others, providing **better trading setups** and consistent opportunities.

Market Trends

Volatility: Double-top and double-bottom divergences remained the **most reliable signals**, especially during the last hours of the trading session.

Performance: Russell 2000 led the market, providing stronger trades compared to SPY and QQQ, which showed **mixed signals**.

Best Trades of the Week

• Russell 2000 Calls: Bought at **$0.15**, surged to **$1.00 (~6x return)**, settling at **$0.40** amid market volatility. Outside our 10c cost and you had to be quick to exit before it fell back to 40c.

• SPY Calls: Afternoon volatility divergence confirmed **8x returns** on quick scalping setups.

• Short-Term Scalps: Consistent profits came from **3-minute and 5-minute charts**, while longer timeframes remained flat.

Trading Philosophy

• Volatility Signals Drive Success: The most profitable trades occurred when identifying volatility divergences, particularly during key trading hours.

• Adapt to Market Conditions: In choppy or unclear markets, traders found success by focusing on **short-term timeframes** and avoiding forced trades.

• Timing is Critical: Major trade opportunities emerged in the **first and last hours** of trading, emphasizing the importance of precise execution.

Looking Ahead

Traders should continue focusing on Russell 2000 for its **better follow-through** on volatility signals. Expect clearer patterns to emerge, but remain patient until **high-confidence setups** present themselves.

P.S. Stay patient, trust the signals, and execute with confidence!

IWM 205 calls expiring 3-17-2025