Good morning, traders…

In case you haven’t noticed, the market is on a wild run right now…

The SPDR S&P 500 ETF Trust (NYSEARCA: SPY) has surged 11% in just 10 trading days, snapping back hard after a brutal eight-week downtrend from mid-February to mid-April.

Two factors have driven this sudden shift in tone: 

• Softer tariff talk. 
• Strong tech earnings. 

After weeks of rattling the markets with ultra-aggressive trade war rhetoric, President Trump has noticeably backed off, signaling that negotiations with key partners (like China) may have a more measured path forward. 

The market hates uncertainty and loves clarity, so it’s not surprising that we’re seeing a strong reversal to the upside. 

Fantastic earnings reports from Microsoft Corporation (NASDAQ: MSFT) and Alphabet Inc. (NASDAQ: GOOG) last week added fuel to the rally. 

Furthermore, the market internals are looking better. The VIX has gone from 60 to 22 in less than 30 days:

Plus, SPY is holding above its 200-day exponential moving average (EMA):

With this backdrop, it’s time to look at the setups that stand out right now: the names showing strong patterns, big Smart Money flow, and clear technical setups…

5 Smart Money Setups I’m Watching This Week

Let’s look at five names that could offer some big trading opportunities this week:

• CRISPR Therapeutics AG (NASDAQ: CRSP)
  This one really caught my eye on Friday. We saw strong action in the morning with $60 calls, and by the afternoon, repeaters showed up again. The chart backed it up: early strength, a clear flat top resistance, and higher lows forming that classic bull pennant pattern. That kind of setup is like a loaded spring — pressure building, waiting for the breakout. I called it out live in the room, and sure enough, it gave us the move we were waiting for.
  
• Nike Inc. (NYSE: NKE)
  Nike has been consolidating, sitting right near the top of its range. If it can break above the $84.80 level, those $61 calls from last week look like they could have real legs. I’m setting alerts at that key level and watching for confirmation.
  
• PayPal Holdings Inc. (NASDAQ: PYPL)
  PayPal has been on a strong run, with $72 calls getting hit hard last Friday. If PayPal can clear $67.77, I like the odds for continuation. Again, it’s all about waiting for the price action to confirm the flow.
  
• Athenex Inc. (NASDAQ: ATNX)
  Not a name I talk about often, but the June $7.50 calls look interesting, especially if it can break back above the $8 mark and fill the post-earnings gap.
  
• Applied DNA Sciences Inc. (NASDAQ: APDN)
  We saw some repeaters Friday, although I’ll admit, some of the trades were below the bid, which I don’t love. But if the price action confirms, it’s worth watching. Remember, price always tells the real story. We can see all kinds of exciting things on the scanner, but if the chart doesn’t confirm, it’s just noise.

Additionally, I’ll be watching earnings closely this week:

Notes for Next Week

As we head into the thick of earnings season, keep your eyes open, watch my OMEN Scanner, and call out anything you see. 

Next week, I’m hopping on a plane to Mexico, working with Tim Sykes on his Inner Circle Challenge Monday-Wednesday…

Then, I’m off the clock to celebrate something very special: my 20th wedding anniversary with Shannon. 

Two decades. I still shake my head, wondering how I’ve been lucky enough to be married to this incredible woman for twenty years. 

So, next week, I’ll be gone, and Ethan will be headed to Disney with his family, which is practically a quarterly tradition for them. You’ll still catch Ethan in the mornings, but the room will be quieter overall. 

I appreciate your grace on this. While I’m off in Puerto Vallarta, and Ethan’s taking pictures with Mickey, I want you all to keep the room humming…

Be good to each other, stay disciplined, and don’t let the excitement of the moment pull you out of your carefully-constructed trading plan. 

Happy trading,

Ben Sturgill

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