5/3/26 Best Idea For The Week Ahead

The SPY just wrapped up another week at all time highs but yesterday it may have put in a short term exhaustion candle. Notice the long body on the candle followed with a close below where it opened. This is a candle showing we tried for higher levels and sold off the whole day closing at lows. It doesn’t have to mean anything drastic but we’ve been on an incredible run a little cooling off would be healthy. We’re still 3% away from the 21 ema down at 700. We really don’t have any catalysts coming up until Nvidia reports in a couple weeks so if we were going to cool off, this would be when. All in all we’re in a healthy uptrend, a little extended but nothing egregious, for the time being you have nothing major to worry about. The next time we lose that 21 ema we will start discussing bearish scenarios.

This weeks best idea was going to be NOK but I see Citrini already highlighted it last night, its the top name in the database over the last week and yesterday it saw an overwhelming amount of calls. Considering his friday night post on it, I expect it gaps up nicely tonight so I’m going to skip over what I had written up and shift my attention to another name that saw alot of action this week with a ton of out of the money calls being bought. I’m going to draw up a risk reversal you can put on and get paid to wait. As always, the trade has the potential to be profitable even if the calls don’t work out.