5/19/25 Live Trading Room Market Recap & Trades
Still Risk Of Blowing Up
I had the pleasure to be a guest on Guest Contributor Jason Delorenzo's live webinar this morning - before jumping into my live trading room. As you know, we launched a new partnership with Vol.Land so LaDucTrading.com members can benefit from his option market analysis, tools & trades!
In a nutshell, the morning read I had was that the gap down looked overdone. I simply did not see the selling under the surface to support it.
I said the same thing live to members and wouldn't ya know: we went red to green on the day! Nice long chases everywhere!!
Except FSLR - which was a rec'd short last week at the highs, expecting a daily gap fill on trigger of 185 back to 156.89. Working! Big picture, I can see this basing next few months before a proper base is formed/tested/reversed higher.
Speaking of bottom-fishing plays that have formed/tested/reversed higher... rec'd long NTR, RIVN & ZIM continue to push higher.
And UNH is up over 20% in three trading days! I did a whole 'CAPITULATION SELLING' segment on this one Thursday 5/15 - where down volume swamps all prior bars but price stops moving down. I even gave the level of 253 as likely bottom before reversal back up/to gap down of 307.11. Now $315. Great job for those who followed!!
SPX is still working higher as VIX continues to fall back into VIX expiry this Wednesday. Then I wouldn't be surprised to see weakness into end of week.
Yes, that would time with the House Reconciliation Bill vote Wed 1AM getting delayed at same time jobless claims Thursday pre-market could show rising risks to unemployment rate.
But a bigger level for VIX to base and move higher with perhaps more gusto that sticks: 15.50.
ES has worked well as a tell. You have my levels.
Yes, market is extended, and my net buying indicator has closed green for SIX consecutive weeks in a row. That's strength. It's tired, but it hasn't turned lower yet. So I will wait.
In the meantime, there is still upside risk to consider...