The market is under extreme pressure right now.
Geopolitical tensions, macro uncertainty, and massive global catalysts are all colliding to create a trading environment that’s wild, unpredictable, and packed with opportunity.
From renewed tariff headlines to geopolitical flashpoints like the recent events surrounding Venezuela and Greenland, markets are reacting violently.
Some sectors are ripping higher, others are crashing.
Major indexes can’t decide whether to push higher after consolidating near the highs for weeks, or start a freefall price correction.
And there are more catalysts besides the ones I just mentioned:
- AI sector shifts and big tech reevaluations raise the stakes in growth vs correction debates.
- Labor markets show stress while inflation and rate expectations keep traders guessing.
- There’s Fed leadership uncertainty and potential rate cuts on the horizon.
Stocks can spike or collapse on this news alone … And in this unique environment, options give us an edge to trade both sides of the momentum.
Right now, I’m watching two setups: One bullish, one bearish.
Bullish
On Tuesday, January 20, after the long-MLK weekend, markets pulled back hard as geopolitical stress spiked.
Tech names and major indexes tanked after fresh tariff headlines and Greenland tensions rattled traders.
The Nasdaq-heavy Invesco QQQ Trust (NASDAQ: QQQ) dipped along with the broader market. But I knew that kind of violent downside reaction often sets up a clean retracement once the market collects itself.
When fear overreaches, the risk-reward on a bounce gets mighty juicy. Especially for a tech-led index like the QQQ.
Sure enough, on Wednesday the QQQ rallied past Tuesday’s open, signaling buyers stepped in and short-term sellers lost conviction.
I was looking for this bounce as soon as the market opened on Tuesday morning.
On the QQQ chart below, every candle represents one trading minute:
This is one of the setups I like to trade on the bullish side of stocks: A shock drop followed by a clear reclaim of key levels, showing the market isn’t ready to break down yet.
In today’s volatile environment, setups like this can offer defined entry and clear risk levels for smart trade setups.
Even as investors lose their heads all around us.
Bearish
Precious metals are running wild right now. And it could lead to a huge pullback.
Gold and silver continue to rip to record levels, driven by rising geopolitical uncertainty, a weaker U.S. dollar, and safe-haven buying as traders flee risk assets.
Both metals hit fresh highs this week, climbing sharply as global tensions intensify and the dollar weakens.
Silver in particular has seen extraordinary gains. It’s up big in early 2026 after already doubling in price last year and attracting strong investor interest and ETF flows.
One of the most direct ways to trade this momentum is through the iShares Silver Trust (NYSE: SLV).
Look at the chart below where every candle represents one trading day:
Parabolic moves like this don’t go straight up forever. When assets accelerate sharply, especially in a sentiment-driven rally, they become overextended and vulnerable to corrections as traders lock in gains and short sellers re-enter.
I’m watching for a corrective retracement in SLV. There’s a chance to trade a pullback if the metals sector cools off or if the dollar strengthens.
It’s a compelling bearish setup to watch alongside the bullish QQQ bounce.
And this volatility isn’t over …
Thus far, 2026 is shaping up to be MORE volatile than 2025. Stop sitting on the sidelines and get involved!
You can look at charts all day long. But until someone explains how to turn these charts into cash, you’re destined to lose like 90% of traders.
Join Ben’s Trading Bootcamp on January 27 and 28!
You’ll never see the market the same again.
Stay Street Smart,
Jeff Zananiri
