Good morning, traders…
A bad day for markets turned into a great setup for traders.
Tuesday’s Greenland sell-off shook out weak hands and pushed intriguing charts down to support.
The S&P 500 had its worst day since October, volatility spiked, and traders rushed into safe havens.
Within 36 hours, it was over.
Trump announced a “framework deal” at Davos, backed away from the tariffs, and ruled out military intervention in Greenland.
Markets rallied Wednesday (and kept climbing Thursday) as the trade war fears evaporated.
The pullback ended quickly because the stock market hates uncertainty more than anything.
When the trade war threat vanished, traders were ready to buy the dip, hand over fist.
This violent swing is a gift to us.
Previously overextended breakout patterns are now trading at much better risk/reward spots. Volume shelves that looked too far away on Monday are suddenly in play.
Now we’re looking at some great entry points on juicy charts with continuous Smart Money flow.
These Are My Top 5 Smart Money Setups…
JetBlue Airways Corp. (NASDAQ: JBLU)
Contracts to Watch: June 18 $7 Calls
JBLU chart looks so good, but it has to break a key resistance level at $5.75.
This could become a double top or a major breakout. It’s binary, one way or the other.
I like the June 18 $7 Calls for a longer-term idea in my “LEAPS account” (low-maintenance, longer-duration positions).
Nice volume profile, compression at the point of control, and key levels aligning beautifully.
Set an alert above $5.50. That break could be a “first-class ticket” to Gaintown.
Novavax Inc. (NASDAQ: NVAX)
Contracts to Watch: Feb 20 $10.50 Calls
NVAX is blasting off, up 50% in three weeks.
I like the Feb 20 $10.50 Calls, but only if it breaks above $10 (a key round number).
Just like JBLU, the question is: Can it break resistance?
Create an alert above $10.
Gilead Sciences Inc. (NASDAQ: GILD)
Contracts to Watch: Feb 21 $135 Calls
GILD is getting heavy bullish flow with multiple sweepers and repeaters.
Millions in premium, all above the ask.
I’m eyeing the Feb 21 $135 Calls, especially now that the chart has broken out above $129.60.
It’s extended for sure, but the flow and setup are impossible to ignore.
NVIDIA Corp. (NASDAQ: NVDA)
Contracts to Watch: Feb 21 $197.50 Calls
NVDA was a beast earlier in the week. I got stopped out at breakeven, but the chart saw strong upside later.
There’s an inverse head and shoulders pattern forming with a clear neckline.
I like the Feb 21 $197.50 Calls if it clears $185.80.
Strong sector, strong stock, strong pattern.
This is where top-down trading really shines.
Western Digital Corp. (NASDAQ: WDC)
Contracts to Watch: Longer-dated Calls (TBD)
This setup fits the “picks and shovels” narrative around companies supplying the AI gold rush.
Case in point: Western Digital’s memory is the backbone of AI infrastructure (and prices are soaring).
The stock has already exploded from $41 to $500 in a wild nine-month move.
I’m watching for a pullback near the 8 EMA as a potential long swing entry.
I haven’t picked contracts yet, but they’ll be longer-dated calls.
How To Trade These Setups
With the recent geopolitical volatility, NOW is a rare opportunity to look for new entries…
That’s why I’m hosting a special 2-day Options Bootcamp next Tuesday, January 27th – Wednesday, January 28th.
Because despite the chaos of the last few months…
We’ve still been able to catch some of the biggest moves in the market, like:
+52% on AAPL (1 day)*
+100% on TSLA (same day)*
+215% on CMCSA (2 weeks)*
+100% on AAPL (1 day)*
+100% on META (same day)*
+200% on HOOD (2 days)*
+294% on GOOGL (4 days)*
I want to show you exactly how we’re doing it…
The scanners, the indicators, and the strategy…
Click below for everything you need to know about the bootcamp:
Happy trading,
Ben Sturgill
*Past performance does not indicate future results
