BY MARK SEBASTIAN
February 26, 2025
Hey Traders,
What a day on Tuesday – the market rocked and rolled.
On the lows the S&P 500 was down over 72 points.
On the highs, we threatened unchanged extremely late in the day.
This was a good day to sit out trading butterflies … I am glad we did.
It was a great day for trend trading and Licia managed a pretty good one given the moves in the market.
First, Let’s Recap Yesterday’s Trade
No official trade yesterday.
But the moves were giant for the more active traders that have learned how to “leg into” trades.
Just look at that chop!
The only spot where a trade maybe made sense was off the lows around 1033. But that was really early in the day.
We try to give you a good idea every day – this was a good day not to trade butterflies.
In terms of Licia’s XSP idea, the sucker went up 100% a couple of times. Everyone who was in the trade at a minimum should have broken even.
…Today’s Outlook
Welp!
It appears that a decision might have been made on Tuesday … even if many can’t see it.
Look at the massive wick after going below the 100 DMA. That level held and the market might be ready to bounce.
Tonight we’ve got NVDA earnings – those are going to be BIG for Thursday. But leading into the announcement, I would be looking for an inside day (less movement) with volatility falling into NVDA.
S&P 500 futures are up 20 pre market, approaching 6000. That’s going to be the level we likely play with all day.
If you’re a member, be sure to join Licia at 10:15 ET – she’ll be looking at the charts and can provide her blueprint for market action today.
Call Ted if you aren’t currently a member – 888 872 3301.
Your Only Option,
Mark Sebastian
Mark Sebastian
Founder & CEO, Option Pit
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