Good morning, traders. 

Moody’s just couldn’t help themselves.

Late Friday, after the market closed and most traders had packed it in for the weekend, Moody’s dropped a downgrade bomb on U.S. credit. 

That gave insiders plenty of time to scoop up cheap puts heading into Monday morning — and as expected, the U.S. markets opened with a thud.

But … the market didn’t fall apart.

Despite the downgrade headlines, the S&P clawed its way back, shrugging off the initial shock. 

That bounce wasn’t just hope. 

It was smart money seeing through the noise. 

And You Can Too.

I like this kind of environment.

Volatility isn’t something to fear. It’s where real opportunity lives. 

When the VIX stays above 20 like it has, it tells us the market expects movement. 

And if you know how to trade that movement, you’re not just surviving, you’re thriving. 

I want the VIX to stay up there. 

I want more moves like we saw Monday. 

Sideways markets don’t make money. Choppy ones do.

But don’t let that distract you. 

There are risks.

Rates are still high. That pressure is leaking into every part of the economy, from housing to consumer spending. 

The Fed might be “data dependent,” but the data is fuzzy — and that’s putting it politely.

Which brings us to what really matters this week: real data.

What I’m Watching This Week

First up is Target earnings. Retail earnings always give us a frontline view into the consumer. 

Target reports Tuesday, and it’s going to be a big tell. 

Are people still spending? Are margins getting squeezed? 

I’m not expecting fireworks, but any signs of weakness will ripple through the market, especially if Walmart’s recent strength turns out to be an outlier.

Next are manufacturing stats. We already got a look at the Philly Fed numbers last week, and they were surprisingly solid. 

That was one of the more encouraging prints we’ve seen in a while. 

Now we’ll see if Manufacturing PMI backs that up or tells a different story on Thursday. 

PMI is broader — it pulls from a wider range of industries and regions — but it’s not always as forward-looking as something like the Philly Fed. 

If both line up strong, that’s a green light for bulls. 

But if PMI rolls over? That’s a red flag that last week’s bounce might have been a blip, not a trend.

Last but not least is initial jobless claims, also being released Thursday. 

This market has stayed resilient, in large part because the labor market hasn’t cracked. 

If we start to see claims tick up consistently, that’s the kind of slow bleed that could shift the Fed’s tone — and the market’s mood.

A Lull Before the Next Storm

Overall, this week’s calendar is light. 

No major Fed speakers, no CPI or PPI to sweat over, and no major earnings outside of a few key retailers. 

But don’t mistake that for safety. 

It’s the calm before the storm.

Next week we get Nvidia, and that one could move the entire market. 

AI is still the biggest theme out there, and Nvidia is the barometer. 

But until then, this is a week to grind. 

A week to stay sharp, manage risk, and look for high-probability trades — especially in options.

Every piece of news matters. Every report can be a trigger. 

And if you’re watching closely — and trading smart — the opportunity is everywhere.

Let’s get after it,
— Jeff Zananiri

Moody’s tried to rattle the market, but smart money’s already moving.

Join Danny Phee today at 2 p.m. ET as he breaks down the Zero Day setups popping off right now — and how things are lining up after the downgrade, ahead of Target earnings, and with key data on deck.

👉 Show up, get sharp, and take your shot.

*Past performance does not indicate future results.