Good morning, traders…

Jeff here. 

The last two weeks have been wildly unpredictable. But my top strategies are still working.

If you’re using my GAMMA CODE and Burn Notice tools — you saw some insane moves, were alerted to some solid wins, and experienced a few spots where we had to manage risk like pros.

This market has been a mess — lots of flip-flopping, choppy action, and sudden reversals. 

When things get like this, I adjust by keeping position sizes small and sticking to one-star trades unless we see something truly exceptional.

In other words, I’m shrinking the game because we’re in a higher-risk environment. The market isn’t giving us clean trends, so we don’t need to push too hard. 

Of course, that could change. But for now, conservative trading wins.

Those who get too aggressive in this environment are likely to get chewed up, spit out, and blown up — while those with patience will get paid. 

Let’s talk about what we learned last week, how the big picture is coming into focus this week, and most importantly, what might happen next…

Last Week’s Highs, Lows, and Lessons

We had some incredible action in GAMMA CODE and Burn Notice trades last week. The setups were there — if you stuck with the process, you should have done well.

• Palantir Technologies Inc. (NYSE: PLTR) – This thing took off like a rocket, delivering multiple 100%+ moves. It was a textbook example of why you need to give strong setups room to work. Too many of you are stopping out for tiny losses when the trade just needs a little breathing room. If you’re buying something for $1 with the goal of selling it for $5, $6, or even $10, you can’t panic over a 20-cent drop. Manage size properly and let it play out.
• Amazon.com Inc. (NASDAQ: AMZN) – Gamma delivered a clean 150% win. A gap down set up a perfect move higher, and the system caught it beautifully. This is exactly why I trust the tools we’ve built—when the signals align, you don’t overthink, you execute.
• Apple Inc. (NASDAQ: AAPL), Citigroup Inc. (NYSE: C), Marathon Digital Holdings Inc. (NASDAQ: MARA) – All solid Burn Notice plays. If you were in the right spots, this was a strong week for you.

We got stuck in the NVIDIA Corporation (NASDAQ: NVDA) trade a little bit, but that’s part of the game. 

The setup was strong, and I felt good about it going into last weekend. I figured, “If it plays out, great. If not, it’s a one-star trade, time to move on.” 

That’s how you stay in the game for decades — by understanding your risk tolerance and cutting losses immediately. 

And speaking of understanding the risk in this market, you must be paying attention to macroeconomic indicators right now…

Macro Data: Hotter Than Expected

A few big macroeconomic numbers have surprised to the upside recently:

10-Year Treasury Yields Rising — The 10-year has shot up 20 basis points in the past five days. 

Non-Farm Payrolls Higher – Last week’s jobs number came in hotter than expected, with 307,000 jobs added. Even worse, last month’s number was revised up by 50,000. That’s bad news for rate cuts. The Federal Reserve won’t ease up if the job market stays this strong. Expect this theme to stick.

Inflation Data Hotter – The Consumer Price Index (CPI) also came in hotter than expected, rising to an annual inflation rate of 3% for the first time since June 2024. 

These are bad numbers. If this trend continues, it will add to bearish pressure on stocks. 

Trump’s Tariff Talk & The VIX Trade

Last week, President Trump started making noise about new tariffs on countries like Japan — places he hadn’t mentioned before. 

Then he placed 25% tariffs on all foreign steel and aluminum imports. 

If this escalates, markets won’t like it. It’s not the kind of decision that crashes stocks overnight, but it adds uncertainty.

This brings me to the CBOE Volatility Index (VIX) trade. It’s been rinse and repeat all year:

• Buy VIX at 14-16
• Sell at 18-20

If you’ve been following along, you’ve had at least four clear chances to make this trade work. 

It’s simple, effective, and predictable. Keep the VIX on your watchlist for moves below $16 and above $18. 

4 Ways to Survive the Chop

This market is difficult, but not impossible. Here are four steps to surviving the volatility:

• Stick to the process – If you’ve been following the system, you had a strong week. If not, ask yourself: were you cutting winners too early? Were you sizing too big? Were you chasing trades instead of planning them? Fix it.
• Keep your inventory fresh – Don’t get stuck in bad positions just because you “like” them. Rotate into trades that are working.
• Take your exits – When I give you an exit, at least scale out. Lock in profits. Don’t “hold and hope.”
• Size appropriately – Don’t go too big too early. You can always add to a winner later. 

Trade conservatively and follow your rules. We’ll make it through this chop together. 

Happy trading,

Jeff Zananiri

P.S. Last week, my GAMMA Code system gave us multiple 100%+ setups…

But if you want to start getting in on these trades before they take off, there’s only one place to start…

This SATURDAY, February 15 at 1:00 p.m. EST, the great Danny Phee is hosting a LIVE WORKSHOP to reveal the top GAMMA setups for next week.

Let AI help you find triple-digit trades — Click here to reserve your seat!

*Past performance does not indicate future results