Most traders are staring at their screens right now wondering where all the action went.
- Presidents’ Day wiped out Monday momentum.
- The broad market is grinding sideways.
- The SPY isn’t doing much of anything.
And as a result, the usual suspects are already complaining there’s nothing to trade this week.
They’re looking at this all wrong.
A slow, choppy week means the noise has been filtered out for you. When 90% of the market goes quiet, the 10% that’s still moving practically screams in your face.
Right now, I’m not scanning hundreds of setups. I’m not forcing trades that don’t make sense. I’m locked in on a very specific strategy: one that actually performs better when the market thins out like this.
Think about it. In a hot, high-volume week, every stock is moving. It’s hard to tell which moves have real momentum behind them and which ones are just noise riding the tide.
When the tide pulls back, the real setups stand out immediately.
I can count the legitimate setups on one hand this week.
That’s our edge.
My Trade Ideas This Week
The S&P 500 ETF Trust (NYSE: SPY) is one of the most watched tickers in the market. And right now, it’s telling me something important.
Before the close on Wednesday, February 18, I sent out the following alert:
That’s my calculated read on a market that’s been flashing warning signs for weeks.
February is historically one of the most bearish months on the calendar. We’ve already seen volatility spiking beneath the surface while the indexes grind sideways.
And AI valuation fears haven’t gone away.
The SPY hasn’t committed to a direction yet. But sideways chop, near support, after multiple failed attempts at new highs, points to exhaustion.
On the SPY chart below, every candle represents one trading day:
I’m not predicting a crash. I’m reading the tape. And the tape is whispering “bearish”.
The Key To This Strategy Right Now
There’s one rule that separates disciplined traders from blown-up accounts in markets like this one.
Size down.
This isn’t complicated. When the market feels weak, choppy, and directionless, you don’t need to swing for the fences.
Our entire goal is to stay in the game. Small size keeps you alive long enough to catch the big move when it finally comes.
I flagged it right in the alert: “trade small size”.
Not because the setup isn’t there. But because the market’s fickle nature right now demands respect.
A lot of traders hear “small size” and think it means lack of conviction. It doesn’t. It means you understand risk. The traders who refuse to size down aren’t being bold, they’re being greedy.
And greedy traders in choppy markets don’t just lose trades. They lose whole accounts.
There’s no shame in sizing down. There’s plenty of shame in a max-size blowup on a week where you knew the conditions were shaky and traded like they weren’t.
This market will get loud again. When it does, you’ll want dry powder and a clean account to take full advantage.
Until then: stay small, stay sharp, and let the setup come to you.
Stay Street Smart,
Jeff Zananiri
*Past performance does not indicate future results, Not typical.
