Good morning, traders…

Thursday was a tough day to trade. 

By mid-morning, it looked like buyers were stepping in. But around 11:00 a.m. EST, everything rolled over. 

Just when it looked like we might get some follow-through, the rug got pulled. Again.

That kind of fake-out move doesn’t just catch traders off guard — it exhausts them. It’s the kind of day when you feel like you’ve run a marathon (and you’re not even halfway through your coffee).

But you need to understand something: choppy doesn’t mean untradeable. Not even close. 

Choppy sessions can feel chaotic on the surface, but counterintuitively, they’re also where some of the clearest setups start to take shape. 

The trick is knowing where to look — and being patient enough to wait for them. Trade like a hunter. 

Right now, some very specific names are starting to stand out. Some are showing surprising strength, others are getting attention from OMEN Scanner flow, and a few are setting up clean technical levels that could lead to bigger moves. 

But they aren’t the ones grabbing headlines. These are quieter setups. Underrated. Missed by most. And that’s where the edge is starting to form.

Today, I’ll walk through which names I’m focusing on, where I see opportunity next, and how I’m managing risk (while the market keeps trying to shake everyone out)…

The “T Word” Returns

Yesterday was an extra-choppy day in an already-choppy market as the major indexes rejected key moving averages and anchored VWAP zones. 

The major indexes tested those levels, didn’t like what they saw, and turned around. 

That rejection, combined with new updates to Trump’s trade policy, brought fear back to the market. 

Know the game you’re playing. We’ve learned something over the past month…

As soon as the magic word “tariffs” hit the tape, it’s game over. And because these are auto-focused tariffs, car stocks like General Motors Company (NYSE: GM) started dumping. 

GM was showing strength earlier this week. But when Trump said the “T word,” all of that momentum was eviscerated in an instant. 

It’s already down over 10% from its highs. 

Interestingly, Ford Motor Company (NYSE: F) is holding up much better. And Tesla Inc. (NASDAQ: TSLA) was actually green yesterday. 

I like TSLA right now…

Nearly all their manufacturing is U.S.-based. That insulates them from the tariff pressure a bit, and the chart confirms it — relative strength, strong levels, and a clean setup:

I’m watching $276 up to $290. So far, it can’t break $290. But if it holds support and pushes through resistance, this could break out hard. 

Look to next week’s expiration for a little time cushion.

This Market Feels Exhausted

There’s a lot of back-and-forth right now. We rally, then fade. We bounce, then reject. 

But that’s how the market works sometimes. It gives you a glimpse of strength, pulls you in, then yanks the rug out from under you. 

It’s trying to shake people out. Don’t be one of them. 

Zooming out, I don’t see this heading into a full-blown recession. I know everyone’s throwing around the phrase “recession fears,” but at this point, it feels like people are just guessing. 

Don’t listen to these talking heads on CNBC and similar channels. They’re usually wrong anyway. 

Think for yourself and stick to what matters — price action, sentiment, and levels…

We had a pretty clean morning range yesterday on the SPDR S&P 500 ETF Trust (NYSEARCA: SPY) from $565 to $570.

If we stay inside that, expect chop. But if we break out — or down — that range gives us a defined market structure to play off of.

The Invesco QQQ Trust (NASDAQ: QQQ) is in a similar boat: if it breaks that key support area, it could accelerate lower. But the setup is well-defined. That’s all we can ask for right now. 

Smart Money Bets to Watch

Moving to names from the OMEN Scanner, Keurig Dr Pepper Inc. (NASDAQ: KDP) is intriguing here:

The options showed a ton of flow during Wednesday’s midday session — big October $35 calls came in one after the next. 

The squeeze is setting up, the histogram looks healthy, and the chart has room. 

If KDP clears this range, that low-volume gap up to $36 could make for a nice move. It’s a strong name in a weak tape, and defensive names are catching bids lately.

Others to watch in that group: 

• The Kraft Heinz Company (NASDAQ: KHC)
• McDonald’s Corporation (NYSE: MCD)
• Altria Group Inc. (NYSE: MO)
• AT&T Inc. (NYSE: T)
• Verizon Communications Inc. (NYSE: VZ)

These names have relative strength in a weak market — with the potential for serious upside moves if defensives continue to lead.

One-Offs and Potential Movers

• Desktop Metal Inc. (NYSE: DM) – Had a wild 100% move the other day. There was some end-of-day call buying ($5 strikes), which could be worth a watch. Might be linked to an acquisition, not confirmed. Keep it on radar for a speculative move.
  
• Petco Health and Wellness Company Inc. (NASDAQ: WOOF) – Earnings name that missed EPS, but revenue was up. The CEO has been aggressive with store closures to cut costs. With a high short float and improving revenue, this one could rip if the volume shows up. No weekly options — just monthlies. Watch for action in the $3 calls.

There’s no denying that the market is in a weird spot…

Headlines are loud, and price action is choppy.

But underneath all of that, there are plenty of setups worth watching. Levels still matter. Volume still tells the truth.

The market doesn’t owe us smooth days. It just gives us a shape and lets us decide if we’re going to trade it or sit it out. 

And on choppy days, just showing up and sticking to your system is the name of the game.

Happy trading,

Ben Sturgill

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

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