Good morning, traders…

Although it’s April Fool’s, I want to start today with some brutal honesty: this market is incredibly confusing. 

Like “My Uncle Norman from Maine trying to explain crypto” confusing (but more on Uncle Norm later)… 

Last week, the market internals said it’s go time, then yesterday, we got a violent gap-down open.

Many traders are frustrated, and I get it — we want things to move the way we expect, especially after last week’s nice little gap-up.

What we saw yesterday was the exact opposite of what happened last week. 

Last Monday, the market opened strong — gap up, energy, optimism. But we started this week with a gap down, and that can feel like a gut punch if you’re not ready for it.

But if you were prescient and gutsy, the signs of a reversal were there in the morning.

By the end of the day, the S&P 500 had gone from blood-red to slightly green. A remarkable recovery — and an incredible trading opportunity (if you had the foresight and discipline to make a bold bullish call):

If you’re serious about becoming a consistently profitable trader, this kind of chop is exactly where you get better. 

It’s the weight room. It’s playing at the tougher gym. It’s your chance to learn how to trade with discipline and emotional control when the market isn’t handing you lay-ups on a silver platter. 

So, let’s break down what’s happening this week — and more importantly, how to respond, not react…

What’s Happening in the Market?

The S&P 500 closed last week near $5550. 

I was hoping for a bounce at that level, but instead the index opened yesterday with a gap below it. 

It ultimately bounced off $5470 and ran higher all day, ultimately closing green. 

The levels I was watching didn’t play out as expected. And that’s an important lesson in this tape…

The truth is, the market doesn’t care what we want. It doesn’t text us the night before and ask what kind of open we’d prefer. It just… does what it does. 

Monday’s gap-down open was largely driven by two things:

1. The VIX spiked. Again. When the VIX (CBOE Volatility Index) gaps up, the broader market usually gaps down — and it doesn’t do so gently.
2. Quarter-end and month-end. Fund managers are doing their typical portfolio housekeeping. Locking in gains. Rebalancing. That often leads to moves that don’t make much sense if you’re looking at the market from just a technical lens.
3. “Liberation Day” fears. Global tariffs are set to hit tomorrow, April 2. 

7 Smart Money Bets to Watch

While the broader tape might be a mess, some juicy setups are starting to peek through on the OMEN Scanner:

• AbbVie Inc. (NYSE: ABBV) – We’re keeping an eye on that $210 level. If ABBV gets above it, the April $210 calls could set up nicely. Big volume came in recently on that strike.
  
• Johnson & Johnson (NYSE: JNJ) – Classic pullback and consolidation. The $165 psychological level is acting like a lid, but if JNJ breaks that, the April $170 calls look interesting. The order flow supports the idea, and that gap fill potential is real.
  
• The Boeing Company (NYSE: BA) – Similar story. If it breaks above $175, I’m looking at those April $182.50 calls. Market’s been tough, but BA has shown relative strength.
  
• Petrobras (NYSE: PBR) – This one’s a longer-term idea. If it clears that $14.41 zone, we’ve seen large interest in the October $15 calls. Weekly chart is shaping up.
  

• Kraft Heinz Company (NASDAQ: KHC) – Watch $30.45 for a break. April $30.50 calls are on the radar.
  
• Pfizer Inc. (NYSE: PFE) – Keep an eye on $25.50 for a short-dated move. The April 4 $25.50 calls could be worth a look.
  
• Intel Corporation (NASDAQ: INTC) – Looking at $22.90 or $23.90 for a break. Trapping with the April 4 $23 calls makes sense if it moves.

The Big Picture

Now, let’s zoom out for a second.

I had a conversation with my Uncle Norman yesterday — he’s from Maine, thick accent and all — and he asked what I thought of this market. 

My response was simple: I love it.

Not because it’s easy. But because it teaches.

It reminds me of when I was a kid playing basketball. My dad told me to “stop hoopin’ at the local Y,” where the games were soft and easy. 

He said, “Son, if you want to get better, go where the game’s harder.” 

So I did. I played with kids who needed the game, not just wanted it. 

I got beat up. But I also got better. And by the time it was time to apply for college, I was getting offered full-ride scholarships to play basketball. 

The same principle applies here.

This market is tougher. More emotional. But that’s why it’s so instructive. 

Everyone looks like a master trader during an unstoppable bull market. The test is how you handle the choppy tapes — how you keep your cool, manage risk, and stick to your process when the candles aren’t just going one direction.

3 Tips for Surviving the Chop

• This is the time to be short-dated. We’re trading in a VIX > 20 environment. Don’t stretch yourself out too far on time. Look for high-quality setups and be nimble.
  
• Patience pays. Always. The market has a way of transferring money from the impatient to the patient. Protect your capital, keep your head, and don’t force trades that aren’t there.
  
• Keep perspective. This kind of market builds real traders. And you’ll be better for it, no matter how the next few days go.

We’ve got more uncertainty on the horizon with PMI numbers, jobless claims, and non-farm payrolls all hitting later in the week. 

Stay short-dated, stay cautious, and stay ready to strike when the setups are clean.

You got this. And I’m here with you every step of the way.

Happy trading,
Ben

P.S. Last earnings season, we had 100 winning trades in a row* in Earnings Edge — don’t miss the next 100…

Join the great Danny Phee for LIVE EARNINGS WORKSHOP — This WEDNESDAY, April 3 at 4:00 p.m. EST.

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*Past performance does not indicate future results