Good morning, traders…
You open up my OMEN Scanner in the morning…
You see a few names from the same sector pop up. Unusual call flow. Gaps with volume. A breakout holding higher. Then another one. And another. Different tickers, same group.
That’s the beginning of a theme.
Themes don’t pop up on a chart. They build from big Smart Money bets across an entire sector.
Not just one biotech name, but a whole set of them lighting up. Not just one foreign tech stock gapping up, but a line of them opening strong, printing call flow, and clearing levels together.
That’s when you know it’s not just a random bet, but a major theme developing.
Themes simplify your process. They clear your plate and focus your attention where it counts.
You don’t have to watch 50 charts. You watch a handful of crucial sectors that matter (and the few names leading the group).
Here Are Three Themes I Can’t Ignore Right Now. Neither Should You…
Theme #1: The Airlines Take Off
Airlines were leading the S&P 500 yesterday in a face-ripping move to the upside.
The move was led by Delta Air Lines Inc. (NYSE: DAL).
The company raised its profit outlook and gapped up 13%:
United Airlines Holdings Inc. (NASDAQ: UAL), American Airlines Group Inc. (NASDAQ: AAL), and LUV all moved higher with it.
Airlines are a strong theme. DAL often leads the group, and when it runs, the rest usually follow.
But the clues were there earlier in the week if you were keeping your eyes on my OMEN Scanner…
LUV printed two major call orders late Tuesday: one in the weeklies at the $35.50 strike and another December order worth over $2 million in premium.
Yesterday, LUV gapped up and hit $36, a major resistance level that lines up with the 200-week moving average:
Coincidence? No. The Smart Money knew.
The last time LUV traded above that mark was 2022.
This test matters. If LUV clears $36 and holds, the sky’s the limit.
Theme #2: Crypto Stocks Flashing Late Flow
Late Tuesday, Bitcoin-related names saw aggressive call buying.
Marathon Digital Holdings Inc. (NASDAQ: MARA) printed a $300,000 call order, centered around the $19–$21 range.
MicroStrategy Incorporated (NASDAQ: MSTR) is coiling with it. Watch for a break above $431.
Both of these stocks have high short interest. If Bitcoin pushes higher, shorts will cover, and these crypto stocks will enjoy the ride.
Theme #3: China and Tech Stocks Setting Up
Baidu Inc. (NASDAQ: BIDU) showed several large call blocks over $150,000 on Monday. It’s now retesting the $89 breakout level with the 200-day EMA acting as resistance on the 5-minute chart.
In U.S. tech, Apple Inc. (NASDAQ: AAPL) is holding above $210, but it needs to clear $215 to stretch higher. Earnings are scheduled for July 31, so we could see some bullish front-running ahead of that.
Amazon.com Inc. (NASDAQ: AMZN) had a clean reversal and now looks ready to test $224.
Roku Inc. (NASDAQ: ROKU) gapped up on an analyst upgrade. It’s now flagging just under recent highs. A classic breakout setup above $104.
One more lesser-known name worth watching is Summit Therapeutics Inc. (NASDAQ: SMMT). This stock has high short interest, strong flow, and a breakout zone above $26.
2 Chart Patterns To Watch For
Two patterns are catching my eye:
- Shotgun Pattern: Clustered consolidation like we’re seeing in Advanced Micro Devices Inc. (NASDAQ: AMD) and BIDU. These can explode when they break.
- Inverse Head & Shoulders: Visible on both AAPL and AMZN. Clean neckline levels, decent volume, and plenty of room above.
All three themes are showing aggressive Smart Money flow, strong technicals, and clear levels.
If this theme-wide momentum holds, the follow-through trades will be waiting for us next week.
Happy trading,
Ben Sturgill
P.S. The best traders don’t stop working just because it’s the weekend…
You shouldn’t either.
Join the great Danny Phee TOMORROW, July 12 at 4:00 p.m. EST for a LIVE OMEN WORKSHOP.
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*Past performance does not indicate future results
