5/4/25 Best Idea For The Week Ahead

We wrapped up a strong week in the market, but I have to calm expectations down, that whole move we just saw, where we rallied 10% in 10 sessions, we didn’t even touch the 200 day yet. The green line below is the 200, so I would say more than anything, we were just incredibly oversold and once Trump backed off the original tariff guidelines, we began to normalize once the shock wore off.

So we are still 10% off highs, but for the most part things are alright for now in markets, there shouldn’t be any surprises that shock the market unless Trump ramps tariffs again. The megacaps have almost all reported, Nvidia remains, and nobody gave any scary guidance regarding the shortages or tariffs headed our way here in the next few weeks. So let’s see how all that plays out before we get too excited. The price action has been telling us stocks were going to be ok for the past week as we broke that multi month downtrend.

This weeks best idea is a $200b company that is breaking out over all the key moving averages and looks set to run hard. I’m going to go over the open options trades I’ve logged and give various trade ideas on how to play this upside.