It’s your last chance!
Today at 12:30 P.M. EST: How I grew $5,000 into $493,000 in just 60 days.
The livestream starts in a few hours. You’re running out of time!
Remember, the market was closed on Monday for Memorial Day. Which means we’re in a short trading week…
A short week in the middle of a highly volatile market:
- New Iran headlines could drop at any moment.
- Oil prices are ready to move in either direction.
- Sticky inflation complicates the new Fed chair’s outlook.
Attend today’s livestream at 12:30 P.M. ET for my trade plan.
We only see a few short weeks every year… And far fewer occur during markets this volatile.
There are HUGE moves on the table this week!
Why This Short Week Is Different
Most short trading weeks fall into one of two camps.
Either traders pack five days of action into fewer sessions, and the tape goes wild. Or the desks empty out, volume dries up, and price action drifts sideways while everyone extends the long weekend.
I don’t think we’re getting the lazy version. But don’t get aggressive until you see confirmed volatility…
Heading into Tuesday’s open:
- Iran negotiations continue, and the news cycle could flip at any moment.
- Oil prices are sitting on a knife-edge depending on Hormuz headlines.
- A long weekend of geopolitical headlines is loaded and ready to hit once the market opens.
Stack those catalysts on top of a compressed four-day calendar, and we have a recipe for intraday moves that could pay an entire month’s wages.
But I’m not predicting a direction this week…
I’m waiting for the market to show me.
Watch Before You Trade
My rule for a week like this is simple:
Let the market tell us where it wants to go.
A lot can change between Friday’s close and Tuesday’s open. Especially in a Trump market.
Forcing a bias before the first hour is the fastest way to give back last month’s gains.
Here’s my initial approach…
My Favorite Index
The iShares Russell 2000 ETF (NYSE: IWM) is my favorite index for reading market sentiment right now.
When traders feel aggressive, money rotates into small-caps. And the IWM (a small-cap index) pushes higher at a faster rate than larger indexes.
- If the IWM gaps up and holds its level in the first hour, the bulls are in control, and small-caps will lead the next leg higher.
- If the IWM gaps down and can’t reclaim support, short setups light up across the board.
The IWM sentiment tells me a lot about the market, and it leads me to stronger plays on specific tickers…
Once I find a direction, I can trade the IWM or look to trade individual stocks with this scan.
I’m Trading Both Sides
The traders who get hurt in a week like this pick a direction on Monday night and refuse to flip.
The markets don’t care about your weekend thesis.
If Iran headlines turn bullish, I’m ready to buy calls on that strength. If talks fall apart and oil rips higher, I’m ready to buy puts on names that get hit the hardest.
I turned $5,000 into $493,000 with this exact strategy. Follow along today!
I’m not predicting the headline or the reaction. The point is to have a plan for either outcome and let the chart confirm which side wins.
The Bottom Line
A short trading week with this much news on deck doesn’t come around often.
We get maybe three or four of these each year.
Moves that would normally take a full week can happen by Wednesday afternoon…
I’m watching the IWM, then looking for the most volatile moves intraday with my custom stock scanner.
Join me today at 12:30 P.M. ET to see exactly how I’m trading this week.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
